The global industrial hemp market is growing at a CAGR of 17.67% during the forecast period, driven by the increasing demand from application industries such as food, beverage, personal care, and animal care. Hemp-based products have more digestible proteins than meat, eggs, cheese, and milk, which is expected to boost their demand as food ingredients, especially among vegan consumers. The emergence of hemp-based skin care products has had an enormously beneficial influence on the demand for hemp in the region. The growing global demand for products, together with the advancement of technologies and innovation, are making it easier for growers to harvest, thus changing the landscape of hemp production in the region. Lower consumer demand for lifestyle and wellness products due to social restrictions and lockdown policies will have a negative impact on demand patterns for cosmetic ingredients and certain categories of food additives.
However, the growing demand for environmentally friendly products in building materials, alternatives to fiberglass, thermal insulation and automotive products is expected to promote market growth. In addition, the demand for products in the textile, paper and construction materials markets is growing due to their favorable acoustic and aesthetic properties. The key factors that are driving the growth of the industrial hemp market include increasing demand from application industries, along with the benefits of agricultural and environmental products. The high nutritional values and beneficial fatty acid and protein profile of hemp are driving demand for hemp products in the market. The growing awareness of the dietary benefits of hemp seed and hemp oil, together with increasing demand from the cosmetics and personal care industries, will drive market growth. Several primary market sources, both supply and demand, were interviewed to obtain qualitative and quantitative information.
The increase in the consumption of plant-based proteins due to the global popularity of veganism is expected to drive demand for processed hemp-based food products, such as bars, flour, snacks and cheese. In addition, the growing demand for products in industries such as agriculture, textiles, personal care, recycling, furniture, food, beverages, paper and construction materials is expected to drive market growth. The easing of restrictions and the public discourse about the resumption of economic activities in the consumer goods market indicate that a recovery in demand is imminent. As such, it is clear that there is a growing demand for hemp-based products across various industries.