DUBLIN–(BUSINESS WIRE)–The “Industrial Hemp Market – Forecasts from 2022 to 2027” report has been added to ResearchAndMarkets.com’s offering.
Industrial hemp belongs to the family of plant species Cannabis stive. This plant is used in numerous industrial and consumer products as a raw material worldwide. The core chemicals found in industrial hemp are fibre and tetrahydrocannabinol (THC). The presence of tetrahydrocannabinol (THC) makes it a valuable ingredient.
However, tetrahydrocannabinol (THC) is a psychoactive chemical that affects the human nervous system if consumed. Hence, the trade and usage of industrial hemp are regulated by the drug authorities. The growing acceptance of industrial hemp in numerous industries, coupled with the loosening of strict rules, has increased the market value.
Furthermore, innovation and development of new products also expand the market prospects. Moreover, robust growth in the end-user industries is expected to diversify the market opportunities. However, in numerous countries, industrial hemp is highly regulated owing to the presence of THC, which constrains the market.
The Industrial Hemp market, by region, has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American market for Industrial Hemp is anticipated to hold a dominating share owing to greater acceptance of THC.
In the US, Drug Enforcement Agency (DEA) regulates the production and trade of industrial hemp. Data from USDA Rural Development shows that the net retail value sale of industrial hemp in 2017 in the country stood at US$820 million, slightly from the previous year. Rising production in the country coupled with the easing of regulation is expected to drive notable market demand.
The Asia Pacific Industrial Hemp market is forecasted to drive at a noteworthy rate owing to a surge in CBD-based products, particularly pharmaceuticals and cosmetics. The area has emerged as a manufacturing hub for numerous skincare products and other cosmetics. Increasing demand for CBD-based cosmetics has raised the market adoption and hence driven significant demand for industrial hemp.
CBD Hemp oil is projected to hold a significant market share.
Based on type, the Industrial Hemp market has been segmented into hemp seed and oil, hemp fibre, and CBD hemp oil. CBD hemp oil is expected to hold a remarkable share of the market and grow at a noteworthy rate. The rising demand for CBD-based cosmetic products is one of the prime reasons driving the market demand. Furthermore, favourable regulations provide a pass for CBD-based products that also help in market growth. The legalization of CBD in the US further expands the segment opportunities.
Organically produced industrial hemp is expected to dominate the market.
By source, the Industrial Hemp market has been segmented into organic and conventional. Organically produced industrial hemp is expected to dominate the market. The surge in demand for an organic product is the prime reason expected to drive the market demand for the segment. However, storage and lower shelf life of organic industrial hemp, owing to minimum involvement of chemicals, is expected to constrain the market growth.
Based on application, industrial hemp is distinguished in food, beverage, personal care products, textiles, and pharmaceuticals. Personal care products and textiles are expected to hold a significant market share. The increasing demand for THC and fibre-based cosmetics is anticipated to support the market demand for industrial hemp in the cosmetic industry. The pharmaceutical sector is also expected to grow at an exceptional rate owing to numerous medical benefits. The food and beverage sectors are expected to grow at a slower rate due to the presence of the psychoactive chemical THC.
Robust growth in CBD-based products
One of the prime reasons supporting the growth in the industrial hemp market is the rising adoption of CBD-based products, which is expected to drive noticeable demand. CBD skincare and pharmaceutical products have observed a surge in market demand owing to numerous benefits. Furthermore, innovation and the launch of new products are also contemplated to widen the market prospects.
High government regulations
Owing to the presence of THC, the industrial hemp industry is highly regulated by the government and other authorities, which is expected to constrain market growth. Furthermore, restrictions on the use of CBD also impact the market.
The coronavirus pandemic resiliently reduced the market demand for industrial hemp. The robust outbreak of the virus and implementation of a nationwide lockdown resulted in the supply chain and shutdown of manufacturing units, which impacted the market demand.
- Aurora Cannabis Inc.
- Ecofibre Ltd.
- Hemp Inc.
- Hempflax BV
- Konoplex Group
- Dun Agro
- South Hemp Tecno
- Hemp Seed
- Hemp Seed Oil
- Hemp Fiber
- Cbd Hemp Oil
- Personal Care Products
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
For more information about this report visit https://www.researchandmarkets.com/r/mer2v4