Hemp Market Size, Share, Growth, and Industry Analysis, By Type (Hemp Seeds, Hemp Oil, Hemp Protein, Soft Gel Caps), By Application (Supermarkets, Convenience Stores, Others), Regional Insights and Forecast to 2031

Updated On: 22 April 2024

HEMP MARKET REPORT OVERVIEW

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The global hemp market size was USD 2358.3 million in 2020 and the market is projected to touch USD 8206.2 million by 2027, exhibiting a CAGR of 23.1% during the forecast period.

The hemp market has experienced significant growth and diversification, driven by increased recognition of hemp's versatility. With applications ranging from textiles and construction materials to health and wellness products, the global hemp market has expanded rapidly. The legalization of hemp cultivation in various countries has fueled this growth, unlocking opportunities for farmers and businesses. Hemp-derived products, particularly CBD (cannabidiol), have gained popularity for their perceived health benefits, contributing to the market's expansion. However, regulatory challenges and varying legal frameworks globally present ongoing hurdles. As sustainability gains prominence, hemp's eco-friendly attributes enhance its appeal. Overall, the hemp market is dynamic, with evolving trends and regulatory landscapes shaping its trajectory.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic had a profound impact on global hemp market share, causing widespread disruptions and economic challenges. Lockdowns, supply chain disruptions, and reduced consumer spending significantly affected industries such as travel, hospitality, and retail. Remote work trends boosted technology and e-commerce sectors, while pharmaceutical and healthcare industries experienced increased demand. Governments implemented stimulus measures to mitigate economic fallout. Ongoing uncertainties, vaccine distribution challenges, and new variants continue to influence market dynamics. The pandemic underscored the importance of adaptability, resilience, and digital transformation for businesses navigating a rapidly changing economic landscape.

LATEST TREND

"Sustainable Innovation Takes Center Stage In The Market"

Amid a growing global focus on environmental concerns, sustainable business practices and eco-friendly products have emerged as a dominant trend in the market. Companies are increasingly prioritizing sustainability across their operations, from supply chain management to product development. Consumer preferences are driving demand for ethically sourced, low-impact goods, prompting businesses to adopt eco-conscious strategies.

HEMP MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into Hemp Seeds, Hemp Oil, Hemp Protein, Soft Gel Caps.

Hemp seeds, nutritious powerhouses, rich in omega-3 fatty acids and protein, promote health and wellness in diverse culinary applications.

Hemp oil, derived from hemp seeds, is a versatile and nutritious oil with omega-3 fatty acids, antioxidants, and potential health benefits.

Hemp protein, extracted from hemp seeds, offers a plant-based protein source rich in amino acids, fiber, and essential nutrients for nutrition and fitness.

Soft gel caps, convenient and easily digestible, encapsulate liquid or gel formulations, providing a popular method for administering pharmaceuticals, supplements, or vitamins.

• By Application

Based on application the global market can be categorized into Supermarkets, Convenience Stores, Others.

Supermarkets: One-stop retail hubs offering a diverse range of groceries, household items, and products for daily needs, providing convenience and variety for consumers.

Convenience stores: Small, accessible retail outlets stocking essentials, snacks, and ready-to-eat items, catering to on-the-go consumers with quick and convenient shopping.

DRIVING FACTORS

"Consumer Wellness Trend Has Propelled The Popularity Of Hemp Market"

The primary driving factor in the market is the escalating focus on consumer wellness. As individuals increasingly prioritize health-conscious choices, there is a growing demand for products that align with a healthy lifestyle. This trend has propelled the popularity of hemp-based products, such as CBD-infused items, due to their perceived wellness benefits. Consumers seek natural alternatives and are drawn to the nutritional richness of hemp, including essential fatty acids and proteins. As health-conscious choices become integral to consumer decision-making, the hemp market continues to expand to meet these evolving preferences.

"Legislative Changes and Acceptance Have Opened New Avenues For Market Growth"

Another significant driving force is the evolving legal landscape surrounding hemp and CBD products. Legislative changes, with an increasing number of regions legalizing or decriminalizing hemp cultivation and its derivatives, have opened new avenues for market growth. As regulatory barriers lift, businesses have greater opportunities to develop and market hemp-based products, fostering innovation and competition. The changing legal environment not only stimulates market expansion but also enhances consumer confidence, contributing to the overall positive momentum in the hemp market.

RESTRAINING FACTORS

"Market Misconceptions and Stigma May Act As A Hindrance In The Growth"

The hemp market faces restraining factors related to misconceptions and lingering societal stigma. Despite the increasing acceptance of hemp-derived products, there still exists a degree of misinformation and skepticism among consumers. Addressing misconceptions surrounding the association of hemp with psychoactive substances and educating the public about the differences between hemp and marijuana is crucial. Overcoming societal stigma requires concerted efforts from industry players to build trust and awareness, ensuring that consumers understand the nutritional and wellness benefits of hemp without conflating it with illicit substances. Clear communication and education are essential in dispelling myths and fostering a positive perception of hemp products in the market.

HEMP MACHINE

MARKET REGIONAL INSIGHTS

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"North America Region Dominating the Market due to Presence of a Large Consumer Base"

"The market is primarily segregated into Europe, Latin America, Asia Pcific, North America and middle East & Africa."

North America is positioned to dominate the hemp market growth, driven by progressive legalization and a burgeoning demand for hemp-derived products. The U.S., in particular, has witnessed significant regulatory advancements, allowing expanded cultivation and commercialization of hemp. Increasing consumer awareness of hemp's nutritional benefits, coupled with a growing preference for sustainable and plant-based products, further propels the market. The region's favorable regulatory environment, coupled with a robust infrastructure for product development and distribution, positions North America as a key player in the global hemp market, with substantial growth potential in various sectors, including food and beverages, healthcare, and textiles.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Industry leaders such as Canopy Growth Corporation, Charlotte's Web Holdings, Inc., and Aurora Cannabis are actively shaping the hemp market through innovation and strategic market expansion. These companies are leveraging their expertise to introduce novel hemp-derived products, particularly in the CBD sector, catering to the increasing demand for wellness-focused solutions. Additionally, strategic partnerships, mergers, and acquisitions have allowed these key players to broaden their market reach and accelerate product development. By combining innovation with expansive market initiatives, these industry leaders are at the forefront of shaping and influencing the evolving landscape of the global hemp market.

List of Market Players Profiled

• Manitoba Harvest (Canada)

• CW Hemp/CW Botanicals (U.S.)

• Aphria (Canada)

• Canopy Growth Corporation (Canada)

• Nutiva (U.S.)

• Agropro (Germany)

• CV Sciences (U.S.)

• Isodiol (Canada)

• ENDOCA (Denmark)

• Jinzhou Qiaopai Biotech (China)

• North American Hemp & Grain Co (U.S.)

• Yunnan Industrial Hemp (China)

• GFR Ingredients Inc (Canada)

• Hempco (Canada)

• Yishutang (China)

• Naturally Splendid (Canada)

• BAFA neu GmbH (Germany)

• Aos Products (India)

• Suyash Herbs (India)

INDUSTRIAL DEVELOPMENT

January 2020: The industrial development of hemp witnessed a pivotal moment in 2020 when the United States passed the Farm Bill, legalizing the large-scale cultivation of industrial hemp. This legislative shift marked a significant milestone, opening up opportunities for the industrial application of hemp, particularly in textiles, construction materials, and biofuels. The newfound legality spurred innovation and investment in hemp-related industries, driving advancements in processing technologies and expanding the market for hemp-derived products.

REPORT COVERAGE

The hemp market stands at the intersection of innovation, changing consumer preferences, and evolving regulatory landscapes. The industry's trajectory is shaped by a dynamic interplay of factors, including the pursuit of sustainable and wellness-focused products, regulatory clarity, and strategic market initiatives by key players. Despite challenges such as regulatory uncertainties and lingering misconceptions, the global hemp market continues to expand, with North America emerging as a dominant force. The transformative potential of hemp, evident in its applications across diverse sectors, positions it as a key player in the shifting dynamics of the global economy, poised for further growth and integration into mainstream markets.