"Overview of Industrial Hemp market"
The Industrial Hemp market is projected to reach more than US$ 28.2 Bn by 2027, likely to grow with a CAGR of 32.4 % during the forecast period.
The global industrial hemp market has witnessed phenomenal growth for the last two decades. The market is estimated to grow significantly over the forecast period. Some of the factors driving the growth of the global market include growing demand from several industry verticals, lower prices, and rising awareness regarding dietary advantages associated with hemp oil.
Wide Range of Applications is Likely to Drive the Growth of the Global Market
The industrial hemp has applications in several industry verticals including construction, textile, food & beverages, and automotive. Rising demand for coatings, oil paints, putty, varnishes, chain-saw lubricants, printing inks, solvents, and fuel is anticipated to create ample opportunities for market growth.
Increasing demand for personal care and cosmetic products and rising awareness regarding the health benefits of hemp-based oil is favouring the growth of the market. Moreover, supporting government policies for the cultivation of hump-based products in the United States is anticipated to fuel the growth of the global market. Manufacturers are also engaged in research and development activities aimed at producing innovative products in response to rising demand for these products across the globe. This is likely to put a positive impact on market growth.
The Hemp Fibre Segment Dominates the Global Industrial Hemp Market
Based on product type, the global market is dominated by the hemp fibre segment. The dominance of the segment can be attributed to the rising adoption of hemp fibre from the textile industry. Hemp fibre is biodegradable, renewable, and natural material which makes it one of the major eco-friendly materials used in the production of fibre. This, in turn, enables the manufacturers to prefer these materials over traditional textile materials including spandex, nylon, polyester, and acrylic. Also, these materials have applications in several industries such as animal care, food, personal care, and construction which is expected to propel the growth of the segment in coming years.
Textile Segment Accounts for Significant Market Share Whereas Animal Care Sector is Estimated to Show Fastest Growth During the Forecast Period
On the basis of end-use industry, textile segment dominates the global market by holding larger market share in 2018. The bast fibre offers several advantages during the production of consumer fibres and technical textiles. The products include shoes, apparel, socks, diapers, handbags, and fabrics. These factors support the growth of the textile industry at a major extent.
Furthermore, the animal care industry is expected to gain traction in the coming years. The segment is estimated to grow at a compound annual growth rate of 10.0 % between 2019-2027. The industrial hemp products offer high nutrition and rich source of protein which results in high adoption in bird seeds and animal feed. Also. The rising trend of leaves and shives consumption in animal bedding is anticipated to create growth opportunities for animal care segment.
Europe dominates the global market, holding Significant Market share in 2018
In terms of region, Europe is expected to dominate the global industrial hemp market, accounting for substantial market share in 2018. This is mainly due to growing consumption of personal care products and dietary supplements across the region. Further, the growing adoption of hemp fibre in different sectors such as construction, materials, and automotive is fuelling the growth of the region.
North America is expected to show noteworthy growth during the forecast timespan. After the updated 2018 Farm Bill, the U.S. started investing in R&D activities to produce innovative and variety of industrial hemp with minimal THC content. Also, the growing small and niche market of hemp-based consumer and industrial products support the growth of the region.
Moreover, China has a developed supply chain for the production of hemp-based products which makes it one of the largest producers around the globe.
Strategic Merger and acquisition are the strategy adopted by the players present in this market
The global Industrial Hemp market is fragmented with several local and global players, which makes the market highly competitive. The enterprises are focused on expanding their presence with organic methods such as product launch, partnerships, collaborations, and merger & acquisition activities. Some of the instances are stated below.
Some of the prominent companies operating in global Industrial Hemp market include North American Hemp & Grain Co. Ltd, Bombay Hemp Company, Terra Tech Corp., HempFlax B.V., Global Hemp Group Inc, HempMeds Brasil, Hudson Valley Hemp, LLC, Marijuana Company of America Inc, and Parkland Industrial Hemp Growers Cooperative Ltd. (PIHG).
Global Industrial Hemp Market by Product Type
- Hemp Fibre
- Hemp Seed
- CBD Hemp Oil
- Hemp Oil
Global Industrial Hemp Market by Source
Global Industrial Hemp Market by End-Use Industry
- Personal Care
- Animal Care
- Construction Materials
- Food & Beverages
Global Industrial Hemp Market by Application
- Bread Products
- Bakery Products
Global Industrial Hemp Market by Region
- North America
- Asia Pacific
- Middle East & Africa
- Latin America