Industrial Hemp Market: Current Analysis and Forecast (2021-2027)
$3999 – $7577
Emphasis on Type (Hemp Seed, Hemp Oil, Hemp Fiber, Others); Application (Food & Beverages, Textiles, Personal Care Products, Pharmaceuticals, Others); Source (Conventional, Organic); Region/Country
Global Industrial Hemp Market was valued at US$ 5.8 billion in 2020 and is anticipated to reach US$ 30.4 billion by 2027 displaying an elevated CAGR of 27% over the forecast period (2021-2027). Industrial hemp is a botanical class of Cannabis Sativa grown specifically for industrial or medicinal uses which can be used for making a wide range of products. It is one of the fastest-growing plants on earth and one of the first plants to be spun into usable fiber 50,000 years ago.
With the growing applications of industrial hemp and the wide adoption of hemp products, there has been a surge in the production of industrial hemp plants across the globe which in turn is driving the growth of the market. For instance, in 2019, the European countries produce around 25% of the world’s hemp supply. Amongst them, 40% of this volume was accounted for by France alone at the same time. Also, in the United States, 78,176 licensed acres of hemp were recorded in 2018. Furthermore, the growing geriatric population coupled with the increase in the number of chronic diseases is further expected to propel the growth of the market across the globe. For instance, according to WHO, 41 million people die every year because of non-communicable diseases accounting for 71% of all deaths all over the world.
The industrial hemp market is growing exponentially on account of growth in the legalization of hemp cultivation and changing attitudes of public opinion for the legalization of marijuana. For instance, as per a survey conducted, over the past decade, 2/3rd of Americans agreed that the use of cannabis should be legal while 59% agreed that it should be legal for both medical and recreational purposes and 32% says marijuana should be legal only for medical purposed. In addition to this, with the booming cannabis market across the globe, this industry is creating a greater number of jobs than any other industry in the U.S. For instance, as per Leafly & Whitney Economics, over 64,000 cannabis jobs were created in 2018 alone.
Hempco, Hemp Inc., Bombay Hemp Company, HempFlax Group B.V., Manitoba Harvest Hemp Foods, Plains Industrial Hemp Processing Ltd., Ecofibre, GenCanna, Aurora Cannabis Inc., Marijuana Company of America, Inc., are some of the prominent players operating in the industrial hemp market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with new and innovative products.
Insights Presented in the Report
“Amongst Type, hemp seeds segment holds the major share”
Based on type, the market is fragmented into hemp seed, hemp oil, hemp fiber, and others. The hemp seed segment generated revenue of USD XX billion in 2020 and is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027F. The growth of this segment is attributed to the growing awareness regarding the nutritional value of hemp seeds as they are rich in healthy fats and essential fatty acids. For example, as per the USDA National Nutrient Database, a 2-tablespoon serving of hemp seed contains 6.31g of protein and 1.73g of carbohydrates. However, the hemp fiber segment is also anticipated to grow with a considerable CAGR of XX% during the forecast period.
“Amongst Application, Food & Beverages segment holds the major share”
Based on application, the market is fragmented into food & beverages, textiles, personal care products, pharmaceuticals, and others. The food & beverages segment generated revenue of USD XX billion in 2020 and is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027F owing to the growing adoption of hemp-based food products leading to the increase in sales of such food products. For instance, in the U.S., the sales value of hemp-based food was nearly USD 137 million, and this figure is predicted to rise to USD 186 million by 2022. However, the personal care products segment is also anticipated to grow at a considerable CAGR during the projected timeframe.
“Amongst Source, conventional segment holds the major share”
Based on the source, the market is fragmented into conventional and organic. The conventional segment generated revenue of USD XX billion in 2020 and is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027F owing to its growing consumption in the textile and paper industry. Also, the hemp produced by the conventional source is cheaper as compared to that obtained by organic sources which in turn is also driving the growth of this segment. However, the organic segment is also anticipated to garner significant market growth in the upcoming years owing to the rising adoption of organic methods for obtaining industrial hemp.
“Asia-Pacific represents one of the largest markets of industrial hemp market”
For a better understanding of the market dynamics of the industrial hemp market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), Rest of World has been conducted. Asia-Pacific dominated the market and generated revenue of US$ XX million in 2020 owing to the widespread production and consumption of hemp products in textile and paper industry.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts
- The report presents a quick review of overall industry performance at one glance
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the market across different segments
- Deep dive regional level analysis of the industry
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|1.2||Objective of the Study|
|1.5||Currency Used in Report|
|1.6||Scope of the Global Industrial Hemp Study|
|2.1||Research Methodology for the Global Industrial Hemp Market|
|2.1.1||Main Objective of the Global Industrial Hemp Market|
|6||GLOBAL FOOD ROBOTICS MARKET REVENUE|
|8.1||Food & Beverages|
|8.3||Personal Care Products|
|10.1||NORTH AMERICA INDUSTRIAL HEMP MARKET|
|10.2||EUROPE INDUSTRIAL HEMP MARKET|
|10.3||ASIA PACIFIC INDUSTRIAL HEMP MARKET|
|10.4||REST OF THE WORLD INDUSTRIAL HEMP MARKET|
|12||INDUSTRIAL HEMP MARKET OPPORTUNITIES|
|13||INDUSTRIAL HEMP MARKET TRENDS & INSIGHTS|
|14||LEGAL & REGULATORY FRAMEWORK|
|15.1||Demand Side Analysis|
|15.2||Supply Side Analysis|
|15.2.1||Top Product Launches|
|15.2.2||Top Business Partnerships|
|15.2.3||Top Merger & Acquisitions|
|16||VALUE CHAIN ANALYSIS|
|17.1||Porter’s Five forces analysis|
|17.1.1||Bargaining power of Supplier|
|17.1.2||Bargaining power of Buyer|
|17.1.4||Availability of Substitute|
|17.1.5||Threat of new Entrants|
|18.4||Bombay Hemp Company|
|18.5||HempFlax Group B.V.|
|18.6||Manitoba Harvest Hemp Foods|
|18.7||Plains Industrial Hemp Processing Ltd.|
|18.9||Aurora Cannabis Inc.|
|18.10||Marijuana Company of America, Inc.|
Analyzing the historical market, estimation of the current market, and forecasting the future market of the Global industrial hemp market were the three major steps undertaken to create and analyze the adoption of industrial hemp in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global industrial hemp market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the industrial hemp through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the industrial hemp market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as type, applications and soucres. Further country-level analyses were conducted to evaluate the overall adoption of industrial hemp across the globe.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Industrial Hemp. Further, we conducted factor analysis using dependent and independent variables such as increasing popularity of hemp for medical purposes and growing investment for production of hemp-based products. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the industrial hemp sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the industrial hemp market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of value (US$) and the adoption rate of industrial hemp across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the industrial hemp market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the industrial hemp market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type, application and sources of the industrial hemp market.
The main objective of the Industrial Hemp Market Study
The current & future market trends of industrial hemp were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of Industrial Hemp in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of types, application and sources
- Define and analysis of the regulatory framework for the Industrial Hemp industry
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
- Analyze the current and forecast market size of the Industrial Hemp market for the major region
- Major regions studied in the report include North America, Europe, Asia-Pacific and Rest of the world
- Company profiles of the Industrial Hemp market and the growth strategies adopted by the market players to sustain in the fast-growing market
Deep dive regional level analysis of the industry