The industrial hemp market is projected to grow from USD 4.6 billion in 2019 to USD 26.6 billion by 2025, recording a compound annual growth rate (CAGR) of 34.0% during the forecast period. The major factors driving the growth of the industrial hemp market include increasing legalization in the cultivation of industrial hemp, functional properties of hemp seed and hemp seed oil, and their growing use in different food applications, and increase number of chronic diseases.
The European region is projected to be the fastest-growing region in the industrial hemp market during the forecast period owing to growth in consumption of hemp seeds as food as well as their wide application in other food products such as smoothies, yogurt, cereals, and bars especially in countries such as Germany and the Netherlands. Furthermore, increasing legalization of industrial hemp in the European region in the coming years is expected to boost the industrial hemp market.
Major vendors in the industrial hemp market include Hempco (Canada), Ecofibre (Australia), Hemp Inc. (US), GenCanna (US), HempFlax BV (Netherlands), Konoplex Group (Russia), Hemp Oil Canada (Canada), BAFA (Germany), Hemp Poland (Poland), Dun Agro (Netherlands), Colorado Hemp Works (US), Canah International (Romania), South Hemp Tecno (Italy), Plains Industrial Hemp Processing (Canada), and MH Medical Hemp (Germany).
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The industrial hemp market is segmented, based on application, into food, beverages, textiles, personal care products, pharmaceuticals, and others. The food segment is projected to be a leading segment in the industrial hemp market. This is attributed to the usage of hemp in food products, as these are rich in essential fatty acids (linoleic and linolenic); vitamin E; as well as minerals such as phosphorus, potassium, sodium, magnesium, calcium, zinc, iron, and protein. Hemp is mostly consumed in the form of hemp seed, raw or roasted. It is added to salads, smoothies, yogurt, and cereals. The growing consumption of plant-based protein, owing to the popularity of veganism, globally, is expected to increase the demand for hemp-based processed food products such as bars, flour, snacks, and cheese.
The industrial hemp market is segmented, based on type, into hemp fiber, hemp seed, hemp seed oil, and CBD hemp oil. The CBD hemp oil segment is projected to be the fastest-growing segment in the industrial hemp market during the forecast period. This is attributed to the growing usage of CBD hemp oil in various applications such as personal care, health supplements, and food & beverages products. Furthermore, the numerous health benefits of CBD hemp oil make it useful to treat and prevent conditions like anxiety, depression, pain, and acne are also expected to drive the growth.
