Industrial Hemp Market Size, Share, Market Research and Industry Forecast Report, 2020-2027 (Includes Business Impact of COVID-19)

  • TBI155814
  • November 28, 2020
  • Global
  • 132 pages
  • Lucintel
                                              

Industry Insights, Market Size, CAGR, High-Level Analysis: Industrial Hemp Market

The global industrial hemp market size was estimated at USD 4.71 billion in 2019 and is expected to register a revenue-based CAGR of 15.8% over the forecast period. The market is driven by the growing demand for hemp oil and fibers in the automotive, construction, food and beverage, personal care, and textile industries; especially in emerging regions such as Asia Pacific. Rising demand for oil paints, varnishes, printing inks, fuel, solvents, chain-saw lubricants, putty, and coatings is expected to further propel the product demand. In addition, growth in the investment for the production of hemp based products is expected to drive the market growth. Low prices of the hemp as a crop encourage farmers to diversify their crop options, which has increased the number of producers. In Canada, the national acreage of industrial hemp has witnessed about 25% annually in Canada. In addition, the retail value of these products sold in U.S. saw a significant rise in 2018. The major market players focus on the full utilization of the crop to gain greater market share. Rising awareness regarding the dietary advantages of its oil, coupled with the growing demand from the cosmetics and personal care industries is expected to drive the market growth. Introduction of conducive regulation pertaining to the cultivation and use of hemp based products in U.S. is expected to drive the market over the forecast period. Industrial hemp is a highly regulated crop across the world and licenses from different country and state authorities are required to grow, process, distribute, and use these products. On account of the liberalization in regulations, the countries are producing and consuming significant amount of this product which is expected to drive growth of the industrial hemp market over the next eight years. Enforcement of regulations such as the 2018 Farm Bill, which removes the requirement for Drug Enforcement Administration (DEA) registration for growing and/or manufacturing certain kinds of cannabis is expected to provide the impetus for the market growth. In addition, the recent approval of United States Department of Agriculture (USDA) hemp rules by the White House is also expected to positively influence the product demand.

Product Insights of Industrial Hemp Market

Hemp seeds and oilcakes are used in food and beverage industry as an alternative source of food and feed protein. The oil obtained from crushed seeds is used in soap, lotions, shampoo, bath gels, and cosmetics. The rising demand for industrial hemp in the textile, construction, food, personal care, and animal care industry is expected to boost the growth over the coming years. Seeds are majorly used to produce oil which is consumed in food and beverages, personal care, and animal feed industries. The oil is also used in nutritional supplements and medicinal and therapeutic products such as pharmaceuticals. The market for seeds is expected to expand at a CAGR of 19.8% on account of rising demand from application industries over the forecast period. Insulation materials and bio-composites consumes significant amount of hemp fibers on account of its high strength, biodegradable, light weight, and thermodynamic properties. Hemp bio composites are largely used for molding in automotive applications. The fibers are robust, have high absorbent capacity and contain high amount of hemicellulose which makes it a useful crop for textile industry. Rising consumer demand for green building owing to increasing environment pollution across the globe is expected to drive the demand for hemp-based construction materials over the forecast period. Private houses in European countries including U.K., France, and Ireland use a significant amount of hempcrete, which is the concrete made from shives and lime. This in turn has surged the demand for shives in the construction industry.

Application Insights of Industrial Hemp Market

Industrial hemp is an agricultural product and widely used in animal care industry. The seeds are high in protein content and nutritional value and are largely used in animal feed and birdseeds. The animal care segment is expected to expand at a CAGR of 9.7% over the forecast period, owing to the growing consumption of the shives and leaves in animal bedding. Industrial hemp fiber, primarily bast fiber, is widely used for manufacturing textiles, including consumer fabrics and technical textiles. Consumer products include apparel, diapers, fabrics, handbags, working clothes, denim, socks, shoes, and fine textiles manufactured from cottonized fibers. Hamp fabric is strong, hypo-allergic, and is naturally resistant to UV light, mold, and mildew, which represents an added advantage over other fabrics. Hemp oil is widely used for manufacturing food and beverages on account of its high nutritional content, including proteins, fatty acids, and several other ingredients. Hemp seeds and oil are used in several food manufacturing processes, which is expected to drive the market due to increasing consumer awareness about the benefits associated with these products. Hemp fibers are widely used in construction and insulation materials such as fiberboard, cement blocks, stucco and mortar, coatings, putty, roofing underlay, acoustic materials, housewrap, pipe wraps, and shingles. Growth in the use of hemp fiber based products in residential insulation in U.S. and Canada is expected to drive the growth over the forecast period.

Regional Insights of Industrial Hemp Market

U.S. is heavily investing in developing different varieties of industrial hemp with Tetrahydrocannabinol (THC) content less than 0.3% after the updated 2018 Farm Bill which legalized its production. China is the largest exporter of raw and processed hemp products in U.S. followed by Hungary and Romania. Steady growth of small-scale, niche markets of hemp-based industrial and consumer products is expected to continue driving market growth in U.S. over the forecast period. The industry is highly regulated and cultivation, processing, distribution, marketing, and transportation can only be conducted in accordance with state, country, and other regional regulations. Seed varieties play a major role in cultivation and product quality. Asian countries, such as China have a significant tradition of hemp production and exports, which has allowed these countries to dominate the global market in the recent past. The market for industrial hemp in Europe accounted for a revenue share of 22.2% in 2019 on account of its use in automotive parts, construction materials, textiles, and fabrics in the form of fibers. In addition, growing demand for these products in the food and supplements, cosmetics, and personal care markets is expected to drive the market growth over the forecast period. China is the largest producer of industrial hemp products and as the country has never banned its cultivation, it has a well-established supply chain enabling it to take a leading position in the market. China has well-established spinning facilities for natural fibers along with a cheap labor force, which has led to the development of a highly competitive hemp textile industry that offers cost-effective products across the globe.

Market Share Insights of Industrial Hemp Market

The market is large and fragmented in nature and has presence of a significant number of manufacturers and service providers. The companies primarily invest in developing different products from industrial hemp such as oil, personal care products, protein powders, energy bars, textiles, food and beverage products, and automotive and construction materials. Increasing focus on selecting hemp varieties with low THC content, use of developed equipment during cultivation and processing of these crops, providing technical support to the growers, and establishing contracts with the farmers to support cultivation, processing, and use of these products plays significant role in achieving a major market share.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Industrial Hemp Market Research Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global industrial hemp market report on the basis of product, application, and region:

Product Outlook (Volume, Tons; Revenue, USD Million, 2019 - 2030)

  • Seeds
  • Fiber
  • Shives

Application Outlook (Volume, Tons; Revenue, USD Million, 2019 - 2030)

  • Animal Care
  • Textiles
  • Automotive
  • Furniture
  • Food & Beverages
  • Paper
  • Construction Materials
  • Personal Care
  • Other

Table of Contents
Chapter 1. Methodology and Scope                    1.1. Market Segmentation & Scope                    1.2. Market Definition                    1.3. Information Procurement                        1.3.1. Purchased Database                        1.3.2. GVR’s Internal Database                        1.3.3. Secondary Sources & Third-Party Perspectives                        1.3.4. Primary Research                    1.4. Information Analysis                        1.4.1. Data Analysis Models                    1.5. Market Formulation & Data Visualization                    1.6
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