Global Hemp Market Size, Share, Growth Analysis, By Product Type(Hemp Seed, Hemp Oil), By Application Type(Food and Beverages, Textiles), By Distribution Channel(Online Retail, Brick-and-Mortar Retail) - Industry Forecast 2023-2030

Global Hemp Market size was valued at USD 5.7 billion in 2021 and is poised to grow from USD 6.54 billion in 2022 to USD 18.71 billion by 2030, at a CAGR of 14.04% during the forecast period (2023-2030).

Globally, the surging demand for industrial hemp across various industries, including food and beverage, personal care, and animal care, is propelling its widespread expansion. The escalating requirements of these sectors for diverse hemp products like fiber, seed, stalks, herbs, and oils are anticipated to drive substantial growth. The increasing awareness among consumers regarding the nutritional advantages of hemp seed and hemp seed oil, coupled with a rising demand from the cosmetics and personal care segments, is contributing to this trend. The market is witnessing a significant impact with the proliferation of hemp-based products such as soaps, shampoos, bath gels, hand and body lotions, UV skin defenders, massage oils, and more. The nutritional richness of hemp, along with its favorable fatty acid and protein profiles, is fostering a heightened demand for hemp-derived goods. Hemp fiber's exceptional absorbency is finding applications in animal bedding, oil and gas cleaning, and the personal care industry. Additionally, the textile, paper, and building materials sectors are experiencing increased product demand due to hemp's advantageous acoustic and aesthetic properties.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Hemp Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.

Global Hemp Market Segmental Analysis

The Global Hemp Market is segmented based on product type, application, distribution channel. Based on the product type, the market is segmented into hemp seed, hemp oil, hemp fiber. Based on application, the market is segmented into food and beverages, textiles, personal care and cosmetics, pharmaceuticals, automotive, construction. Based on distribution channel, the market is segmented into online retail, brick-and-mortar retail, business-to-business (B2B). These segments will dominate the future hemp market. Based on region, the market is segmented into North America, Latin America, Europe, and MEA.

Drivers of the Global Hemp Market

The market is experiencing significant growth driven by the increasing legalization and regulatory support for hemp cultivation and its derived products across numerous countries. Regulatory relaxations have created a favorable environment, enabling farmers and businesses to engage in hemp cultivation, processing, and commercialization. This has resulted in an expanded availability of hemp-based products, fostering heightened consumer acceptance. Additionally, the rising consumer awareness regarding the potential health benefits of hemp-derived products and the growing demand for natural and organic alternatives in industries like food and beverages, personal care, textiles, and pharmaceuticals are further propelling market growth.

Restraints in the Global Hemp Market

Despite the positive trends, challenges persist due to regulatory complexities and compliance issues in certain regions. Diverse regulations and legal frameworks make it challenging for businesses to navigate the market seamlessly. The absence of standardized testing and quality control measures raises concerns about product safety and consumer confidence. Furthermore, limited availability of certified hemp seeds, especially high-quality varieties, poses challenges for farmers and businesses, leading to potential difficulties in scaling up production. High production costs, including licensing fees, equipment, and regulatory compliance, act as a restraint for market players, particularly small-scale producers.

Market Trends of the Global Hemp Market

One notable trend is the increasing consumer demand for CBD products, derived from hemp. Cannabidiol (CBD), a non-psychoactive compound, has gained popularity due to its perceived health benefits, such as pain alleviation, stress reduction, improved sleep, and overall well-being. This trend is fueled by growing consumer awareness and a shift towards natural and holistic wellness solutions. Another trend involves the diversification of hemp applications beyond traditional sectors like textiles and food. The market is witnessing expansion into areas such as construction, automotive, paper and pulp, biofuels, and animal bedding, showcasing the versatile nature of hemp and its incorporation into various industries, including automotive parts for its lightweight and durable properties.