Report: Hemp Market Worth $6.8 Billion, to Grow to $18.1 Billion by 2027

The Industrial Hemp Market is estimated to be valued at $6.8 billion in 2022 and is projected to reach $18.1 billion by 2027, recording a compound annual growth rate (CAGR) of 21.6%.

Hemp plants.

This is 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 European market is expected to account for the fastest growth in the industrial hemp market”, states the report. “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.

The report states that “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.”

According to the report 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).

The report takes particular note of hemp hurds, which “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”, the report states. “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).

More information on this report can be found by clicking here.