Industrial Hemp Market Size
| Study Period | 2024 - 2029 |
| Market Size (2024) | USD 2.60 Billion |
| Market Size (2029) | USD 5.91 Billion |
| CAGR (2024 - 2029) | > 17.00 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Industrial Hemp Market Analysis
The Industrial Hemp Market size is estimated at USD 2.60 billion in 2024, and is expected to reach USD 5.91 billion by 2029, growing at a CAGR of greater than 17% during the forecast period (2024-2029).
The market was negatively impacted by COVID-19 in 2020. Manufacturing and construction activities were paused as a result of the lockdowns. The outbreak of COVID-19 also brought several short-term and long-term consequences to the construction industry. According to the Associated General Contractors of America (AGC), there were disruptions to work or canceled projects and hence less demand for 'non-essential' projects, like offices, entertainment, and sports facilities, in the initial months of 2020. Furthermore, in 2021, the demand for industrial hemp recovered and is expected to grow at a significant rate in the coming years.
- Over the short term, the major factors driving the market studied are the huge demand for industrial hemp products across diverse and highly functional applications in the healthcare sector.
- On the flip side, stringent regulations associated with hemp are hindering the growth of the market.
- The eco-friendly nature of hemp, with its low carbon footprint, extensive research and development activities, and recent regulations related to hemp, is expected to offer lucrative opportunities for growth in the market.
- North America is expected to grow at the fastest rate across the world, with the largest consumption from countries such as the United States and Canada.
Industrial Hemp Market Trends
Increasing Demand from the Food and Beverage Segment
- Industrial hemp is obtained from the strain of Cannabis sativa, which is grown specifically owing to the various uses of hemp-based products.
- Hemp seeds are used in baking or to make beverages like hemp milk. Hemp seeds can also be eaten raw and are high in protein content, owing to which they are used in animal and bird feeds.
- Hemp seeds are pressed to produce hemp oil, which is high in unsaturated fatty acids. The leaves of hemp can be consumed directly as salads or pressed to make juice.
- Hemp seeds are rich in two essential fatty acids, namely linoleic (omega-6) and linolenic (omega-3). They are also a rich source of vitamin E, vitamin B1, vitamin B2, vitamin B6, and vitamin D, owing to which they are used in ready-to-drink beverages, energy drinks, snacks and cereals, soups, sauces, and bakery products.
- Humans cannot produce essential fatty acids. The addition of hemp seeds could be useful to them, as they are a great source of linoleic (omega-6) and linolenic (omega-3). They are low in saturated fats and contain zero trans fat.
- Owing to the number of benefits associated with industrial hemp, its demand is substantial in the food and beverage industry and may increase even further with the industry's growth.
- For instance, according to the US Census Bureau, retail and foodservice sales generated a revenue of USD 703.1 billion in May 2024, registering a growth of 2.3% compared to 2023.
- According to the annual Farm Credit Canada (FCC) Food and Beverage Report, the food and beverage manufacturing sales in Canada in 2022 were about USD 156 billion, representing a 10.6% higher value compared to 2021. Additionally, baked goods were one of the only categories to see volume growth at the grocery store despite elevated retail prices.
- According to the National Bureau of Statistics (NBS), China, in 2023, the country's foodservice sector experienced a strong rebound, reaching a total income of nearly CNY 5.29 trillion (USD 743 billion), marking the first time it had achieved this milestone. The China Hospitality Association determined that operating income increased by CNY 2 trillion (USD 0.28 trillion) across various sectors, including agriculture, sideline products, and food processing.
- Owing to all the above-mentioned factors, the demand for industrial hemp from the food and beverage segment is expected to grow rapidly over the forecast period.
North America to Dominate the Market
- North America is expected to grow at the fastest rate over the forecast period. In countries like the United States and Canada, due to the growing geriatric population and increased consumer awareness, the demand for industrial hemp has been increasing.
- The growing concerns about skin diseases and an increasing number of chronic diseases are expected to boost the demand for industrial hemp.
- However, the 2023 Farm Bill in the United States is expected to serve as an opportunity to ensure hemp is cultivated and produced to its fullest potential, benefiting farmers and stabilizing the market. This can lead to higher growth in the industrial hemp market in the United States and North America overall.
- In the 2023 National Hemp Report, the USDA valued total hemp production in 2022 at USD 238 million, representing a 71% decline compared to USD 824 million in 2021. Furthermore, farmers in Kansas, Missouri, South Dakota, and Wisconsin increased their hemp plantings by 35% or more in 2022 and contributed a combined total of 6,500 acres to the United States's production.
- According to the Hemp Acreage and Production Survey 2022, the United States yield totals for industrial hemp grown outdoors in 2022 was topped by fiber hemp, for which 20.5 million pounds were utilized.
- The pharmaceutical industry in the United States is the largest in the world, accounting for more than 40% of worldwide pharmaceutical revenues. Despite a recent downturn, it is likely to rise in the following years. The expanding and aging population in the United States is fueling this expansion. Moreover, 15% of the people in the United States are over 65 years old, and this percentage is predicted to expand in the future. Overall, the growing demand for industrial hemp in the pharmaceutical industry is likely to drive the market demand.
- In addition, the textile industry in Mexico has benefitted from the NAFTA agreement, which allows free trade between the United States, Canada, and Mexico. In the wake of the United States-Mexico-Canada Agreement (USMCA), also referred to as NAFTA 2.0, Mexico is optimally positioned to carve even further into China's manufacturing share of the market, particularly within the textile industry.
- The aforementioned factors, coupled with government support, are expected to contribute to the increasing demand for industrial hemp during the forecast period.
Industrial Hemp Industry Overview
The industrial hemp market is fragmented in nature. Some major players in the market (not in any particular order) include International Flavors & Fragrances Inc., Firmenich SA, PharmaCielo Ltd, Manitoba Harvest (Tilray), and Robertet.
Industrial Hemp Market Leaders
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International Flavors & Fragrances Inc.
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Firmenich SA
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PharmaCielo Ltd
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Manitoba Harvest (Tilray)
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Robertet
*Disclaimer: Major Players sorted in no particular order
Industrial Hemp Market News
- January 2022: MariMed Inc. signed a definitive agreement to acquire Green Growth Group Inc., holder of a provisional Cannabis Craft License in Illinois.
- January 2022: MariMed Inc. entered a definitive agreement to acquire Kind Therapeutics USA LLC, a leading vertically integrated cannabis business in Maryland.
Industrial Hemp Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Huge Demand for Industrial Hemp Products Across Diverse Applications
4.1.2 High Functional Application in Health Care Sector
4.2 Restraints
4.2.1 Stringent Regulations Associated with Hemp
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
5.1 Type
5.1.1 Hemp Seed (Consumed Raw, Cooked or Roasted)
5.1.2 Hemp Seed Oil
5.1.3 Cannabidiol (CBD) Hemp Oil
5.1.4 Hemp Protein (Supplement)
5.1.5 Hemp Extract (Without CBD)
5.2 Application
5.2.1 Food and Beverages
5.2.2 Healthcare Supplements
5.2.3 Other Applications
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Malaysia
5.3.1.6 Thailand
5.3.1.7 Indonesia
5.3.1.8 Vietnam
5.3.1.9 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 France
5.3.3.4 Italy
5.3.3.5 Spain
5.3.3.6 Turkey
5.3.3.7 Russia
5.3.3.8 NORDIC Countries
5.3.3.9 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Colombia
5.3.4.4 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 Nigeria
5.3.5.3 Qatar
5.3.5.4 Egypt
5.3.5.5 United Arab Emirates
5.3.5.6 South Africa
5.3.5.7 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Ilesol Pharmaceuticals doo
6.4.2 Bulk Hemp Warehouse LLC
6.4.3 International Flavors & Fragrances Inc.
6.4.4 GenCanna
6.4.5 Robertet
6.4.6 Firmenich SA
6.4.7 Charlotte's Web Holdings Inc.
6.4.8 True Terpenes
6.4.9 Puricon
6.4.10 PharmaCielo Ltd
6.4.11 Silver Lion Farms
6.4.12 Bomar Agra Estates LLC.
6.4.13 Colorado Breeders Depot
6.4.14 33 Supply LLC
6.4.15 Green Passion (Canway Schweiz GmbH)
6.4.16 Victory Hemp Foods
6.4.17 Hemp Oil Canada
6.4.18 Manitoba Harvest (Tilray)
6.4.19 HempFlax Group BV
6.4.20 Entoura
6.4.21 Bedrocan
6.4.22 Signature Products
6.4.23 Nutiva hemp Oil
6.4.24 Temp Co. Canada
6.4.25 Hemp Acres USA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Eco-friendly Nature of Hemp with Low Carbon Footprint
7.2 Extensive R&D activities
Industrial Hemp Industry Segmentation
Industrial hemp is a non-drug variety of Cannabis sativa with very low delta-9-tetrahydrocannabinol (THC) content. It is an agricultural commodity that comes from the same plant species but from different cultivars bred for different uses. There are genetically distinct forms of Cannabis that are differentiated by their usage, chemical makeup, and practices of cultivation. Industrial hemp has been a source of fiber and oilseed for centuries and is extensively used to produce a variety of industrial and consumer products across the world. It is a dual-purpose crop and can be grown as a seed and fiber.
The industrial hemp market is segmented on the basis of type, application, and geography. By type, the market is segmented into hemp seed (consumed raw, cooked, or roasted), hemp seed oil, cannabidiol (CBD) hemp oil, hemp protein (supplement), and hemp extract (without CBD). By application, the market is segmented into food and beverages, healthcare supplements, and other applications (paper, textiles, etc.). The report also covers the market size and forecasts for the industrial hemp market in 27 countries across major regions. For each segment, the market sizes and forecasts are provided in terms of revenue (USD).
| Type | |
| Hemp Seed (Consumed Raw, Cooked or Roasted) | |
| Hemp Seed Oil | |
| Cannabidiol (CBD) Hemp Oil | |
| Hemp Protein (Supplement) | |
| Hemp Extract (Without CBD) |
| Application | |
| Food and Beverages | |
| Healthcare Supplements | |
| Other Applications |
| Geography | |||||||||||
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Industrial Hemp Market Research FAQs
How big is the Industrial Hemp Market?
The Industrial Hemp Market size is expected to reach USD 2.60 billion in 2024 and grow at a CAGR of greater than 17% to reach USD 5.91 billion by 2029.
What is the current Industrial Hemp Market size?
In 2024, the Industrial Hemp Market size is expected to reach USD 2.60 billion.
Who are the key players in Industrial Hemp Market?
International Flavors & Fragrances Inc., Firmenich SA, PharmaCielo Ltd, Manitoba Harvest (Tilray) and Robertet are the major companies operating in the Industrial Hemp Market.
Which is the fastest growing region in Industrial Hemp Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Industrial Hemp Market?
In 2024, the North America accounts for the largest market share in Industrial Hemp Market.
What years does this Industrial Hemp Market cover, and what was the market size in 2023?
In 2023, the Industrial Hemp Market size was estimated at USD 2.16 billion. The report covers the Industrial Hemp Market historical market size for years: . The report also forecasts the Industrial Hemp Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major trends shaping the Industrial Hemp Market?
The major trends shaping the Industrial Hemp Market are a) Increasing demand for hemp-based products in the food and beverage industry b) Development of innovative products from industrial hemp (biofuels, bioplastics)
Industrial Hemp Industry Report
The global industrial hemp market is experiencing significant market growth, driven by the increasing demand for sustainable and eco-friendly products. The market research indicates that the market share and market size are expected to rise considerably. The market analysis shows that hemp seeds and hemp seed oil are the largest segments due to their high nutritional value and extensive use in the food and beverage industry. Additionally, the growing use of hemp-derived Cannabidiol (CBD) in the healthcare sector is a key factor contributing to this market growth.
The industrial hemp market report highlights the complex regulatory structure and the lack of top-tier hemp processing facilities as challenges to market expansion. However, industry reports suggest that opportunities lie in innovative product development, such as biofuel and bioplastics. The North American region, particularly the United States, is anticipated to dominate the market due to the legalization of industrial hemp cultivation.
Industry analysis and industry information reveal that the market value and market segmentation are crucial for understanding the market outlook. The industry outlook and market forecast indicate a positive trend, supported by industry research and industry statistics. The market review and market predictions further emphasize the potential for growth in this sector.
The report example and report pdf provide detailed insights into the market data and industry trends. Research companies have noted the significance of market leaders in driving the market forward. Overall, the market overview and market predictions paint a promising picture for the future of the industrial hemp industry.
