Industrial Hemp Market worth $18.1 billion by 2027 - Exclusive Report
CHICAGO - The Industrial Hemp Market size is estimated to be valued at USD 6.8 billion in 2022 and is projected to reach USD 18.1 billion by 2027, recording a CAGR of 21.6% in terms of value according to a new report by MarketsandMarkets™.
The increased usage of hemp seeds in a wide range of food and beverage products such as cereals, yogurts, protein powders, and hemp milk is driving the market.
The rise in the Hemp hurd demand in construction materials boosts the market growth
Hemp hurds are short fibers that are about 0.5 mm long and make up 70%-80% of the hemp stalk. Hemp hurds accounts for approximately 70% of the usable fibers in industrial hemp. Manufacturing hemp hurd products allows producers to commoditize byproducts while reducing agricultural waste generated by hemp farms. Hemp hurd has distinct properties and can be transformed into a variety of products. Hemp hurds have excellent thermal, mechanical, acoustic, and aseptic properties, making them excellent organic fillers in composites. Hemp hurds is used in construction, animal bedding, agriculture, furniture, and automobiles. They are used to make hempcrete, clothing textiles, bedding, absorbents, particle board, ceiling panels, and compost, among other things.
The rise in the preference for plant-based protein due to the increased vegan population boosted the market growth for hemp seeds
The growing popularity of plant-based beverages, as well as consumer awareness of the health benefits associated with hemp consumption, has resulted in an increase in demand for hemp-based beverage products. Hemp juice, flavored water, hemp coffee, hemp shakes, and hemp tea are some of the most popular hemp-infused beverages. Hemp is high in antioxidants and cannabidiol (CBD), and it has a calming effect on the body by lowering anxiety. Hemp-infused beverages are nutritious and have several skin and heart benefits; additionally, it has a savory flavor that improves the quality of drinks. Phivida Holdings (Canada) and New Age Beverages are two companies that offer hemp-infused beverages (US).
Increased use of hemp in construction materials due to its strength, and durability could help propel the market for industrial hemp
Due to its high strength, flexibility, thermal, and insulation power, hemp fiber is currently used in construction. It is used as a wood substitute in the manufacture of insulating panels and planks, as well as the main component of compact bricks for outdoor and indoor walls and roofs, which replace traditional bricks. Hemp bricks and planks are waterproof, resistant, and insulated, which saves energy and improves soundproofing. Furthermore, its use as a renewable material allows for the retention of pollution in the environment. Hempcrete. Construction materials are made from hemp derivatives such as hemp hurd, hemp bast, and hemp seed oil, and the product range includes hemp wood, hemp plank, hemp brick, and hemp oil finish.
Europe accounted for the fastest growth in the industrial hemp market for the forecasted period
The European market is expected to account for the fastest growth in the industrial hemp market. The growth can be attributed to the increased usage of hemp seed and hemp seed oil in food, beverages, dietary supplements, and personal care products. Furthermore, the use of hemp fiber in a variety of applications, including automotive and construction materials for thermal insulation and soundproofing in automobiles is also driving the growth in Europe. Consumption of hemp seeds in food and other food products such as smoothies, yogurt, cereals, and bars is expected to drive market growth further. In countries such as Germany and the Netherlands, demand for hemp in the form of these products is extremely high, driving the regional market growth.
The Major Players in the Industrial Hemp Market are Marijuana Company of America Inc. (US), Cronos Group Inc. (Canada), Ecofibre Limited (Australia), Green Thumb Industries (US), Curaleaf Holdings Inc. (US), GenCanna (US), HempFlax BV (Netherlands), Konoplex Group (Russia), Hemp Oil Canada (Canada), BAFA (Germany), Dun Agro Hemp Group (Netherlands), Colorado Hemp Works (US), Canah International (Romania), South Hemp Tecno (Italy), and MH Medical Hemp GmbH (Germany).