Market Scope
MRFR (Market Research Future) expects the hemp derivatives market 2022 to be worth more than USD 56.8 Billion by 2030. The market’s expansion rate is also anticipated to be 32.3% between 2022 and 2030 (evaluation period). We will provide COVID-19 impact analysis with the report, along with all the extensive key developments in the market post the coronavirus disease outbreak.
Growth Drivers and Deterrents
Hemp derivatives can be refined into various commercial goods, such as textiles, paper, biodegradable plastics, clothing, insulation, paint, food, animal feed and biofuel. Escalating awareness level among consumers with regard to the nutritional advantage of hemp derivatives along with the surge in the production of industrial hemp could benefit the hemp derivatives industry. Hemp derivatives like seed oil, fibers and CBD have extensive applications across multiple end-use industries including pharmaceuticals, food and beverage, animal feed, personal care, and others. The demand is especially high in the food and beverage sector, with hemp-based items gaining major traction and manufacturers spending considerably on the production of the same.
The Hemp Derivatives Market Overview also stands to profit from the surging legalization rate and cultivation on account of the growth in government approvals. Cannabidiol in particular, has emerged as the new consumer trend, thanks to the increase in social media influencers hyping the benefits associated with cannabis, marketing initiatives taken by players and the expanding application scope. As a result, soaring number of products such as cosmetics, skincare, intimate lubricants, haircare, gummies, pharmaceuticals, infused beverages, pills, and more are leading to higher demand for the global market. Additionally, considering the escalating preference for biodegradable plastic has been fostering the sales of hemp fiber, which benefits the hemp derivatives industry.
Companies are exploring potential application markets including hemp-based pet products, which include pet treats that are hemp-based. Partnerships, acquisitions and product launches are some of the chief strategies adopted by renowned firms to capture a bigger market share. A case in point, in December 2020, Aleafia Health Inc. launched its latest high potency CBD 50 oils in Canada. The oil is expected to be sold to patients as EmblemTM CBD 50 and adult consumers as SymblTM High CBD 50. CBD 50 has full spectrum and contain supercritical CO2 derived from CBD oils that help preserve the natural qualities of the cannabis plant.
Segmental Study
Type and application are considered in the MRFR report as the key segments, based on which the global market study has been carried out.
Types of hemp derivatives are hemp fiber, hemp-derived CBD oil, hemp oil, and more. Hemp-derived CBD oil can zoom ahead at the fastest pace due to the amplified demand in industries like pharmaceuticals, food & beverages and personal care. On the other hand, hemp fiber enjoys the highest demand and is therefore, the biggest shareholder in the global market.
Applications included in the report are food & beverages, pharmaceuticals, personal care, industrial, and others. Food & beverages can expect the fastest growth over the forecast timeline. Hemp derivatives are a primary source of minerals, vitamins, essential fatty acids and protein, and thereby, observe massive demand in the food & beverage sector. The industrial segment can however emerge on top, given the widespread utilization of hemp fiber in the automotive and construction industries.
Regional Outlook
Europe, APAC or Asia Pacific, MEA or Middle East and Africa and North America are the key regions across which the global Hemp Derivatives Market Size can witness varying degrees of growth during the appraisal period.
Europe is the market leader, in view of the large-scale hemp cultivation and consumption. Germany, Netherlands and France are the key markets in the region, where hemp is legalized. Hemp cultivation in Europe accounts for roughly 25% of the worldwide cultivation, wherein France is responsible for over 40% of the total hemp cultivation. Increase in consumer awareness level with regard to the health benefits of hemp derivatives has also bolstered the demand for these products in the region.
The fastest growth of the hemp derivatives market is observed in APAC, with countries like China and India in the lead. China stands as a prominent exporter of hemp to the US and Europe. Global vendors across end-use industries including cosmetics and personal care are increasingly targeting developing countries to boost their sales and profitability, which helps foster the market growth in the region. Plus, rising legalization encouraging cannabis’ use in medical applications in the region also acts as a major growth booster.
Renowned Industry Contenders
Some of the highly renowned contenders in the global market are Konoplex LLC (Russia), Colorado Hemp Works, LLC (US), Bafa Neu GmbH (Germany), HempFlax Group B.V. (Netherlands), Hempco Inc. (Canada), HemPoland (Poland), Hemp Oil Canada (Canada), Ecofibre (Australia), Dutch Hemp Group (Netherlands), GenCanna Global USA, Inc. (US), MH Medical Hemp GmbH (Germany), Canopy Growth Corporation (Canada), to mention a few.
