Industrial Hemp Market Sees Massive Growth
The global industrial hemp market was found to be valued at $4,452.0 million in 2021, which is projected to reach a huge $60,682.8 million by 2030, increasing at a compound annual growth rate of 33.7% from 2021 to 2030, according to a new report from P&S Intelligence.
The growing need for hemp in several industries and the rising legalization of the cultivation of cannabis for industrial uses are some major drivers for the market. Hemp is now used in a variety of products, such as organic body care products, clothing, health foods, and biofuels.
Key Findings of Industrial Hemp Market Report
- During the projection period, the demand for hemp in the pharmaceutical business is expected to advance at a CAGR of 35%. This will be due to its pain-relieving and anti-inflammatory characteristics, as well as the possibility of treating cancers, decreasing diabetes risk, and alleviating stiffness and discomfort.
- The 2018 Farm Bill included a number of provisions to legalize hemp cultivation in the U.S. as an agricultural commodity and remove it from the list of restricted substances. Such initiatives have been boosting the interest of farmers in this commodity, thus resulting in its easy availability.
- If a cannabis product contains more than 0.3% tetrahydrocannabinol (THC) content or if hemp is grown without a license, the bill outlines behaviors that would be deemed a breach of the law. Industrial hemp with a THC concentration of less than 0.2% is also permitted for cultivation in European countries.
- In 2021, hemp fiber accounted for roughly 37% of the industrial hemp market share. Due to its flexibility, robustness, and low density, this product is in great demand for the manufacturing of fiberboard, clothing, animal bedding, composites, paper, and compost.