Hemp Market Size, Share, Growth Analysis, By Source Type (Conventional, Organic), By Type (Oil, Fibres), By Sales Channel (Online Channel, Offline Channel), By Application (Textile, Construction), By Region - Industry Forecast 2024-2031

Global Hemp Market size was valued at USD 3.50 billion in 2022 and is poised to grow from USD 4.28 billion in 2023 to USD 21.58 billion by 2031, growing at a CAGR of 22.40% during the forecast period (2024-2031).

The global expansion of the industrial hemp market is being driven by increasing demand from various sectors, including food and beverage, personal care, and animal care. The growing need for hemp-derived products such as fiber, seeds, stalks, herbs, and oils in these industries is expected to spur market growth. Consumer awareness of the nutritional benefits of hemp seeds and hemp seed oil is also rising, which is further boosting demand from the cosmetics and personal care sectors. There is a notable increase in the development of hemp-based products, including soaps, shampoos, bath gels, hand and body lotions, UV skin protectants, and massage oils. The high nutritional value of hemp, along with its favorable fatty acid and protein profiles, is driving interest in these products. Additionally, hemp fiber's high absorbency makes it suitable for use in animal bedding, oil and gas cleanup, and personal care items. The textile, paper, and building materials industries are also experiencing a surge in demand for hemp products due to their desirable acoustic and aesthetic properties. This broad range of applications is contributing significantly to the growth of the hemp market.

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 analyzed to get the final quantitative and qualitative data.

Global Hemp Market Segmental Analysis

Global Hemp Market is segmented by Source Type, Type, Sales Channel, Application, and region. Based on Source Type, the market is segmented into Conventional, and Organic. Based on Type, the market is segmented into Seed, Oil, Fibres, CBD, and Other. Based on Sales Channel, the market is segmented into Online Channel, and Offline Channel. Based on Application, the market is segmented into Textile, Personal Care, Construction, Food & Beverage, and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.

Drivers of the Global Hemp Market

The growing legalization and regulatory support for hemp cultivation and hemp-derived products across numerous countries are key factors propelling market growth. The easing of regulations has fostered a supportive environment for the hemp industry, enabling farmers and businesses to engage in the cultivation, processing, and commercialization of hemp. This shift has significantly expanded the range of hemp-based products available and has enhanced consumer acceptance of these products. As regulations continue to relax, the hemp industry benefits from increased opportunities for development and innovation. The favorable regulatory landscape is encouraging greater investment and participation in the hemp sector, further contributing to the proliferation of hemp products in the market. This expanded availability and acceptance underscore the positive impact of regulatory changes on the hemp industry.

Restraints in the Global Hemp Market

Although hemp is gaining acceptance and legalization worldwide, businesses still face regulatory complexities and compliance challenges in certain regions. The varied regulations and differing legal frameworks create obstacles for companies trying to navigate the market and expand their operations smoothly. This patchwork of rules can complicate the process of establishing and maintaining business practices in the hemp industry. Moreover, the absence of standardized testing and quality control measures for hemp products contributes to concerns regarding product safety and consumer trust. Without uniform standards, ensuring the consistency and reliability of hemp products becomes challenging, potentially undermining consumer confidence and complicating market growth.

Market Trends of the Global Hemp Market

The rising consumer interest in cannabidiol (CBD), a non-psychoactive compound extracted from hemp, reflects its growing popularity. CBD is widely recognized for its potential to relieve pain, reduce anxiety and stress, improve sleep quality, and support overall well-being. This surge in popularity is largely driven by increased awareness of CBD's possible health benefits and a broader trend towards natural and holistic wellness approaches. As more consumers become informed about the advantages of CBD, there is a noticeable shift towards incorporating it into daily health routines. This growing demand highlights a preference for natural alternatives and is propelling the expansion of the CBD market.