Global industrial hemp market is expected to reach USD 14.67 Billion by 2026 at a CAGR of 16.2% during the forecast period 2019-2026. Increasing demand in application industries and growing legalization of hemp cultivation are the two factors which may boost the growth of the industrial hemp market.
Industrial hemp is defined as a broad-leaved plant including taproot which is capable of rapid growth under perfect growing conditions. It also includes the by-products of hemp plants and plant part. For example, by-products are considered as industrial hemp and include hemp flour and hemp seed oil. Industrial hemp is used in producing a large number of products, including construction and insulation materials, paper products, fiberglass, textiles, biofuel, nutraceuticals, bio-plastics, etc. It can be grown for food and non-food products without relying on toxic chemical pesticides, herbicides, and fertilizers.
- The base year for the study has been considered 2018, historic year 2016 and 2017 and the forecast period considered is from 2019 to 2026. The industrial hemp market is analysed on the basis of value (USD Billion) and volume (Tons).
- The study delivers a comprehensive analysis of global industrial hemp market by nature, application, product and regions.
- The report offers in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining the key insight of the market. The report emphasizes on all the key trends that play a vital role in the enlargement of the market from 2019 to 2026.
- Porter’s Five Forces model is used in order to recognize the competitive scenario in the industrial hemp market. This report incorporates the industry analysis which is focused on providing an extensive view of the industrial hemp market.
- The study also includes attractiveness analysis of nature, application, product and regions which are benchmarked based on their market size, growth rate and attractiveness in terms of present and future opportunity for understanding the future growth of the market.
- The report provides company profile of the key players operating in the industrial hemp market and a comparative analysis based on their business overviews, industry analysis, segment market share, regional presence, business strategies, innovations, mergers & acquisitions, recent developments, joint venture, collaborations, partnerships, SWOT analysis, and key financial analysis.
- The market estimates have been evaluated by considering the effect of different political, economic, social, technological and legal factors which are based on our extensive secondary research, primary research, and in-house databases.
- Increasing demand in application industries
- Growing legalization of hemp cultivation
- Capacity expansions and product developments
- Strict rules and regulations of government
- Lucrative use of the product in paper making, textiles, biodegradable plastics, fuel, construction, and health food will drive the market growth.
- Growing buyer bargaining power and emphasis on high-quality products at low costs
Global Industrial Hemp Market Key Findings:
All the segments have been analysed on global, regional and country basis. The study includes an analysis of more than 30 countries for each segment.
The industrial hemp market is segmented on the basis of nature, application, and product.
- The product segment is divided into segments such as seeds, fiber, and shivs. The seeds segment is dominating the market and valued around USD 2.24 Billion owing to the growing demand for hemp grain to obtain seed, oil, and food matter due to its high fatty acid content and nutritional value.
- The nature segment is classified into organic and conventional. The organic segment will be growing at the highest CAGR of 18.9% in the forecast period. The preference for an organic segment is growing in developed and developing countries along with on-going organic trend as well as increased spending capacity of the consumers.
- The application segment includes animal care, textiles, automotive, furniture, food & beverages, paper, construction materials, personal care, and others. The textile industry segment is dominating the market with the highest share of 23.40% in 2018. The textile industry is one of the largest consumers in the industrial hemp market as it is used in manufacturing apparel, fabrics, denim, fine textiles, and others. It is also used in manufacturing several industrial textile products such as twine, rope, nets, canvas bags, tarps, carpets, and geotextiles.
Regional Segmentation Analysis:
The regions analysed for the market include North America, Europe, South America, Asia Pacific, and Middle East and Africa. North America region dominated the global industrial hemp market with USD 1.81 Billion in 2018 where as the Asia Pacific is the rapidly growing region in the market.
- North America is dominating the market owing to the rising geriatric population and increasing concerns about skin diseases and UV protection which are expected to drive demand for hemp oil in the personal care industry of the region.
- Asia Pacific is a rapidly growing region owing to increasing fiber consumption in the manufacturing of biodegradable textiles for consumer and industrial applications. Presence of major supplier countries including China, India, Australia, and South Korea, is expected to have a positive impact on the regional growth.
Global Industrial Hemp Market Competitive Analysis:
Key players in the industrial hemp market are Botanical Genetics, LLC, Ecofibre, Hemp Inc., Plains Industrial Hemp Processing Ltd., MARIJUANA COMPANY OF AMERICA, INC., Global Hemp Group Inc., American Hemp LLC, Valley Bio Limited, Boring Hemp Company, and HempFlax BV. For instance, in October 2018, Alfa Laval launched an aseptic double-seat valve to its range of Alfa Laval Mixproof valves. It reduces the total cost of ownership for dairy, food, beverage, and other manufacturers by up to 45% compared with the leading Aseptic Double Seat Mixproof valves. Further, it also ensures product safety through full protection against the intrusion of harmful microorganisms, even during unwanted pressure spikes.
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This study forecasts revenue growth and volume at global, regional, and country levels from 2016 to 2026. Fior Markets has segmented the global industrial hemp market on the basis of below-mentioned segments:
Global Industrial Hemp Market, By Product:
Global Industrial Hemp Market, By Nature:
Global Industrial Hemp Market, By Application:
- Animal Care
- Food & Beverages
- Construction Materials
- Personal Care
Global Industrial Hemp Market, By Regions: