The growth of the industrial hemp market is driven by growing food & beverage industry, favorable government regulations and policies associated with the legalization of hemp cultivation, and escalating product demand for personal care products, says this report.
According to the report published by Global Market Insights Inc., the Industrial Hemp Market size was over USD 205 million in 2020 and is speculated to reach a substantial valuation of around USD 310 million by the end of 2027, registering with a CAGR of 6% from 2021 to 2027. The report provides a detailed analysis of the market size & estimations, major investment pockets, top winning strategies, drivers & opportunities, competitive scenario, and wavering market trends.
‘Industrial hemp is used for various personal care and industrial applications.’ Its derivatives include, hemp oil, hemp seeds, and hemp fiber. These sustainable derivatives are widely used across several industries, such as textile, personal products, animal feed, and others, owing to their high nutritional value, antioxidant, and anti-microbial properties.
Hemp fiber is extensively used in the pulp & paper industry as a sustainable alternative to wood paper, as it does not require any kind of bleaching, produces more pulp per acre, offers enhanced paper strength, and utilizes chemicals that are less toxic compared to wood paper. Moreover, stringent government regulations focused on limiting wood harvesting and the associated harmful consequences of wood pulp & paper production, are likely to foster product uptake. Driven by these factors, the hemp fiber market from the pulp & paper segment is speculated see robust growth to attain a valuation of more than USD 70.5 million by 2027.
Under food & beverages application, the hemp seeds segment is slated to surpass a valuation of around USD 74.5 million by 2027, registering a CAGR of about 6.5% over the assessment period. Hemp seeds are widely used in food supplements, such as protein powder and meal replacement bars and snacks. They are a nutrient-dense source containing proteins, vitamins, and vital fatty acids.
Key reasons for industrial hemp market growth:
- Proliferating industrial hemp market in Europe.
- Mounting product application in automotive manufacturing.
- Widespread product application across pulp & paper industry.
- Increasing usage in food & beverage and personal care products.
2027 forecasts show ‘bio-composites’ segment retaining its dominance:
In terms of application, the bio-composite fiber segment is poised to exceed USD 10.0 million in revenue in 2020 and is anticipated to witness exponential development over the study timeline. Widespread use of hemp fibers as composites in automotive manufacturing to produce lightweight vehicles is estimated to fuel segmental growth. Additionally, increasing penetration of hemp bio-composites in various consumer products, like automotive interior components and furniture, is set to accelerate the industrial hemp market share.
Europe to continue its top status in terms of revenue:
From the regional perspective, the Europe industrial hemp market is slated to progress at a CAGR of approximately 5.5% over the forecast period to surpass a valuation of USD 80.5 million by the end of 2027. Prevalent adoption of hemp derivatives, including hemp edible seeds, hemp oil, and hemp fiber, among others, across several end-use industries, such as personal care, food & beverage, and textile, is likely to drive regional market growth.
Impact of COVID-19 pandemic on industrial hemp market:
The COVID-19 pandemic considerably impacted brick-and-mortar businesses, forcing them to shift to online platforms, which created a significant gap in the supply and demand for hemp-based products. However, growing consumer awareness regarding the therapeutic effects of hemp has boosted product demand in recent years. Moreover, extended legalization regulations in key regions have also propelled market growth during the pandemic.
Source: https://www.prnewswire.com/