Research and Markets recently added industrial hemp data to its offerings, as the company shares its predictions for the industry from 2022-2027.
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.
Data from USDA Rural Development shows that the net retail value sale of industrial hemp in 2017 in the U.S. stood at $820 million. Rising production in the country coupled with the easing of regulation is expected to drive notable market demand in the future.
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 to Hold 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, favorable regulations provide a pass for CBD-based products that also help in market growth. The legalization of CBD in the U.S. further expands the segment opportunities.
Organically Produced Industrial Hemp to Dominate
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, due 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.