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The global industrial hemp market size reached US$ 5.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 19.7 Billion by 2032, exhibiting a growth rate (CAGR) of 15.1% during 2024-2032.
Global Industrial Hemp Market Trends:
The relaxation of regulations surrounding hemp cultivation and usage in many countries represents one of the key factors influencing the growth of the industrial hemp market across the globe. This is further opening new opportunities for farmers and businesses, which is leading to increased production and market expansion. Moreover, there is a growing demand for hemp-derived products across diverse industries, including food and beverages, textiles, pharmaceuticals, and construction, driven by increasing consumer awareness of hemp’s versatility, sustainability, and potential health benefits.
Additionally, the rising interest in environmental sustainability is driving the adoption of hemp-based products as eco-friendly alternatives to conventional materials. Furthermore, technological advancements and innovation in hemp processing and product development are enhancing the efficiency and value proposition of hemp-derived products, further fueling market growth.
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Factors Affecting the Growth of the Industrial Hemp Industry:
- Legalization and Regulatory Changes:
One of the primary factors influencing the growth of the industrial hemp market is the legalization and regulatory changes surrounding hemp cultivation and usage. In recent years, many countries and regions have relaxed or lifted restrictions on industrial hemp cultivation and production, recognizing its economic potential and numerous industrial applications. Legalization has opened new opportunities for farmers to cultivate hemp as a cash crop and for businesses to develop a wide range of hemp-derived products. For example, the passage of the U.S. Farm Bill in 2018 legalized the cultivation of hemp at the federal level in the United States, leading to a surge in hemp farming and the development of hemp-based products across various industries. As more countries legalize hemp cultivation and establish regulatory frameworks, the industrial hemp market is expected to continue to grow.
- Increasing Demand for Hemp-derived Products:
Another major factor driving the growth of the industrial hemp market is the increasing demand for hemp-derived products in various sectors, including food and beverages, textiles, pharmaceuticals, personal care, and construction. Hemp seeds, oil, and protein are rich in nutrients and are used in food and beverage products such as snacks, cooking oils, and protein powders. Hemp fibers are strong, durable, and environmentally friendly, making them suitable for textile and industrial applications such as clothing, paper, and building materials. Additionally, hemp-derived CBD (cannabidiol) is gaining popularity for its potential health and wellness benefits, leading to the development of a wide range of CBD-infused products. The versatility and sustainability of hemp as a raw material make it an attractive option for businesses seeking natural and eco-friendly alternatives, driving demand and market growth.
- Growing Awareness of Environmental Sustainability:
The growing awareness of environmental sustainability is also influencing the growth of the industrial hemp market. Hemp is considered a highly sustainable crop due to its fast growth rate, low water and pesticide requirements, and ability to improve soil health through phytoremediation. As consumers and businesses increasingly prioritize sustainability and eco-friendly practices, there is a growing demand for hemp-derived products as alternatives to conventional materials and ingredients. Hemp-based products offer environmental benefits such as reduced carbon footprint, biodegradability, and renewable sourcing, making them attractive options for environmentally conscious consumers and industries. The increasing emphasis on sustainability is driving investment and innovation in the industrial hemp sector, further propelling market growth.
Top Companies Operating in the Global Industrial Hemp Industry:
- Aurora Cannabis
- Boring Hemp Company
- Ecofibre Limited
- Hemp Inc
- HempFlax Group B.V.
- Hempro International GmbH
- MH medical hemp GmbH
- Parkland Industrial Hemp Growers Co-op. Ltd.
- South Hemp Tecno srl
- Valley Bio Limited
Industrial Hemp Market Report Segmentation:
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