A new report indicates that the industrial hemp market has been one of the fastest-growing industries of 2020, and will expand significantly over the next several years.
Hemp, Inc. today revealed projections from a new marketing analysis report by Grand View Research indicating that the global industrial hemp market will reach 15.26 billion by 2027, up from 5.33 billion in 2020.
The estimated market size was at USD 4.71 billion in 2019, following the legalization of industrial hemp through the passage of the 2018 Farm Bill.
In Europe, industrial hemp accounted for 22.2 percent of revenue share in 2019 due to its use in automotive parts, construction materials, textiles, and fabrics.
Having never banned the crop’s cultivation, China is the world’s largest hemp producer, with well-established supply and production chains and a competitive hemp textile industry.
According to Grand View, the low price of a hemp crop encourages farmers to diversify their crop options, increasing the number of producers.
The report states that the national acreage for industrial hemp production in Canada has increased approximately 25 percent annually and that the retail value of hemp products rose significantly in 2018, with major market players focusing on the full utilization of the crop to gain a greater market share.
“The market is large and fragmented in nature and has the presence of a significant number of manufacturers and service providers,” states the report. “The companies primarily invest in developing different products from industrial hemp such as oil, personal care products, protein powders, energy bars, textiles, food and beverage products, and automotive and construction materials.”
According to the report, an increased focus on selecting low-THC hemp varieties, using developed cultivation and processing equipment, providing technical support for growers, and establishing contracts with farmers all play significant roles in achieving major market share.
Grand View expects that increased awareness of the dietary advantages of hemp oil and growing demand from the cosmetics and personal care industries will help fuel market growth, along with the introduction of conducive regulations for the cultivation and use of hemp-based products in the United States over the forecast period.
According to Grand View, the steady growth of small-scale niche markets for hemp-based industrial and consumer products should also drive market growth in the United States.
