JUNE 29- A new report projects the Industrial Hemp Market to surpass USD $135.6 billion by 2030 up from USD $6.24 billion in 2020 at a compound annual growth rate (CAGR) of 36.05% in the coming years, i.e., 2020-30. Global market growth has faced challenges due to the COVID-19 pandemic, which has resulted in a decline in manufacturing activities, impacting hemp production. However, the hemp market is expected to grow at a faster rate with the high recovery rate of global economies.
Grain
The hemp grain product segment is estimated to register the fastest CAGR of more than 20% from 2022 to 2030. The increase in awareness among consumers about the nutritional benefits of consuming hemp is expected to fuel the demand for hemp-based food. Hemp seeds are a great source of vitamin B1, vitamin B2, vitamin E, calcium, magnesium, and potassium. Consumer adoption of vegan diets–enriched with essential fatty acids such as Omega-6 and Omega-3–and gluten free products are increasing the demand for Hemp seeds and oil overall. The Global Hemp-based Food Market size was estimated at USD $4.98 billion in 2021, USD $5.32 billion in 2022, and is projected to grow at a CAGR of 6.86% to reach USD $7.42 billion by 2027.
Hemp seeds are also used in the production of oil, which is consumed in the personal care/cosmetic, food & beverages, and animal feed industries. Hemp is increasingly used in lotions, shampoos, soaps, bath gels, and cosmetics. Hemp seeds are also rich in protein content and omega-3 and omega-6 fatty acids, making them optimal for use as birdseed and animal feed- pending federal approval in the U.S. This all further benefits projected grain segment growth.
The Asia Pacific region currently holds the largest hemp grain market share, accounting for roughly one-third of the global market, due to higher consumption in countries like China, India, Japan, and Australia. Additionally, this region is projected to lead the growth of personal care and cosmetic products produced in this segment. However, growth in these sectors has stalled due to pandemic-related lockdowns in China and their impact on the global supply chain.
Within the US, the USDA 2021 survey shows that Hemp grown for grain totaled 4.37 million pounds and utilized production totaled 3.96 million pounds. The area harvested for hemp grown for grain was estimated at 8,255 acres. The average yield for hemp grown for grain was estimated at 530 pounds per acre.
Resources:
Hemp Market Report, Fatpos Global, May 2021, (https://www.fatposglobal.com/reports/industrial-hemp-market/724).
Global Industrial Hemp Market – Industry Trends and Forecast to 2029, Data Bridge Market Research, March 2022, (“Though the pandemic had a little impact on the food and beverage industry's operations compared to other industries, the (Hemp) industry's worldwide supply chain was severely impacted, limiting the industry's expansion.”) (https://www.databridgemarketresearch.com/reports/global-industrial-hemp-market).
Industrial Hemp Market Size, Share & Trends Analysis Report, Grand View Research, (https://www.grandviewresearch.com/industry-analysis/industrial-hemp-market).
Value of hemp production totaled $824 million in 2021, U.S. Dep’t of Ag., Nat’l Ag. Stat. Serv., Feb. 17, 2022 (https://www.nass.usda.gov/Newsroom/2022/02-17-2022.php).