Hemp-Based Products Market Size valued at USD 2.5 Billion in 2023. The Hemp-Based Products industry is projected to rise from USD 2.95 Billion in 2024 to USD 11.25 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.20% during the forecast period (2024 - 2032). Increased awareness and demand for natural and sustainable alternatives in various industries and the relaxation of legal and regulatory restrictions related to hemp cultivation and production are the key market drivers enhancing growth of the market.
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
The market CAGR for hemp-based products is being driven by the rising awareness and demand for natural and sustainable alternatives in various industries. Hemp is considered a highly sustainable crop as it requires minimal water, pesticides, and synthetic fertilizers for cultivation compared to many other crops. Its rapid growth and dense vegetation also make it an effective carbon sink, which aligns with the goals of minimizing greenhouse gas emissions and mitigating climate change. As consumers and industries prioritize sustainability, the environmental benefits of hemp make it an attractive choice for products.
Hemp can be used to produce various eco-friendly materials, including textiles, paper, and biodegradable plastics. As concerns about the environmental impact of synthetic materials and deforestation grow, there is a greater demand for hemp-based alternatives that reduce the ecological footprint. Hemp seeds and hemp-derived products, such as hemp oil, are rich in essential nutrients and fatty acids. The surging awareness of the health benefits associated with these products, including omega-3 and omega-6 fatty acids, plant-based protein, and vitamins, drives demand for hemp-based foods and supplements. Hemp-derived CBD (cannabidiol) has gained popularity in the health and beauty industries due to its potential therapeutic benefits. Consumers seeking natural and organic skincare and wellness products are driving the demand for CBD-infused items.
The changing legal landscape for hemp and hemp-derived products in various countries has facilitated market growth. The passage of the U.S. Farm Bill in 2018, for example, legalized hemp at the federal level in the United States, leading to increased production and market opportunities. Consumers are increasingly becoming conscious of the products they use and consume, and they seek transparency regarding the sourcing and production methods of items they purchase. Hemp's natural and sustainable characteristics align with these preferences and ethical considerations. Further, the continued research and development in hemp-related industries have led to innovative applications, such as hemp-based building materials, biodegradable plastics, and energy-efficient hemp-derived products, further driving the growth of the hemp market. Thus, driving the Hemp-Based Products market revenue.
The Hemp-Based Products market segmentation, based on type, includes Food Products, Hemp CBD, Personal Care Products, Industrial Products, Food Supplements, Consumer Textiles, and Others. The food products segment dominated the market and accounted for the largest market revenue as hemp seeds and hemp-derived ingredients were widely used in various food items, including hemp oil, hemp protein, hemp-based snacks, and more. These products were sought after for their nutritional value, including high-quality protein, healthy fats, and other nutrients. Further, food supplements also had a significant presence in the market, with hemp-based supplements, especially those containing CBD, gaining popularity in the health and wellness industry.
The Hemp-Based Products market segmentation, based on end use, includes Residential, Commercial, and Industrial. The industrial category dominates the market due to the plant's versatility and sustainability. Hemp fibers and hurd are used in various industrial applications, such as textiles, construction materials, and composites, offering eco-friendly alternatives in sectors seeking to reduce their environmental footprint. Additionally, the renewable nature of hemp, its rapid growth, and minimal need for chemical inputs make it an attractive choice for industries looking to adopt more sustainable and resource-efficient practices. Further, the commercial category is the second most common end use due to its versatility in the production of textiles, building materials, and other industrial applications, which contributed to its strong presence in the industrial sector.
The Hemp-Based Products market segmentation, based on distribution channels, includes Online and Offline. The offline category dominates the market due to the importance of consumer education and interaction with these products. Many consumers seek information, advice, and personal recommendations when purchasing hemp-based items, making physical stores an ideal platform for face-to-face interactions with knowledgeable staff. Furthermore, physical stores, including health food stores, wellness shops, and specialty stores, have played a vital role in familiarizing consumers with the wide range of hemp-based offerings, driving their market dominance through personalized and informative experiences. The online channel is anticipated to gain popularity throughout the forecast period.
Figure 1: Hemp-Based Products Market, by Distribution Channel, 2022 & 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study gives market insights into the North America, Europe, Asia-Pacific, and Rest of the World. The North American Hemp-Based Products market dominates due to the robust regulatory framework that has paved the way for legal hemp cultivation and product development. This has encouraged significant investment, research, and innovation in the region, resulting in a wide array of hemp-based products and driving consumer demand for the diverse applications of hemp across industries such as food, textiles, and wellness.
Further, the prime countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.
Figure 2: HEMP-BASED PRODUCTS MARKET SHARE BY REGION 2022 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Hemp-Based Products market accounts for the second-largest market share due to the evolving regulatory frameworks that have facilitated the cultivation and commercialization of hemp, fostering a diverse range of sustainable, eco-friendly, and innovative product offerings. Further, the German Hemp-Based Products market held the largest market share, and the UK Hemp-Based Products market was the fastest-growing market in European region.
The Asia-Pacific Hemp-Based Products Market is expected to rise at the fastest CAGR from 2023 to 2032. This is due to the increasing recognition of the economic and environmental benefits of hemp cultivation, coupled with the region's growing demand for sustainable and versatile raw materials. Moreover, China’s Hemp-Based Products market held the largest market share, and the Indian Hemp-Based Products market was the fastest-growing market in Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Hemp-Based Products market grow even more. Market players are also undertaking a variety of strategic activities to spread their footprint, with important market developments including contractual agreements, new product launches, mergers and acquisitions, higher investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Hemp-Based Products industry must offer cost-effective items.
Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the Hemp-Based Products industry to benefit the clients and increase the market sector. In recent years, the Hemp-Based Products industry has offered some of the most significant advantages to various industries. Major players in the Hemp-Based Products market, including Hempfoods Ltd., Tilray, Inc., GFR Ingredients, Hemp Foods Australia Pty Ltd, Aurora Cannabis Inc., Naturally Splendid Enterprises Ltd., Isodiol International Inc., Navitas LLC, Nutiva, T12 Holdings Pty Ltd., and others, are trying to increase market demand by investing in the research and development operations.
The Canopy Group is a venture capital and investment firm headquartered in Utah, United States. The firm was founded by Ralph J. Yarro III and primarily focuses on investing in and providing support to technology companies and startups. The Canopy Group has been involved in a diverse range of technology-related ventures over the years, spanning various industries such as software, internet services, telecommunications, and more. In May 2023, Canopy Growth announced a partnership with Walmart to sell hemp-based products in Walmart stores across the United States. This partnership is a major step forward for the hemp-based products industry, as it will make these products more accessible to consumers.
Cronos Group is a Canadian-based cannabis company that is involved in the cultivation, production, and the distribution of cannabis and cannabis-related products. Cronos Group was founded in 2012 by Mike Gorenstein and Paul Rosen. It is headquartered in Toronto, Canada. Cronos Group has established a presence and operates in several countries, including Canada, the United States, Israel, Colombia, and Australia. The company is involved in research and development activities related to cannabis and its derivatives, with a focus on creating innovative products and improving the cultivation process.
In March 2023, Cronos Group announced a partnership with Amazon to sell hemp-based products on Amazon.com. This partnership is another major step forward for the hemp-based products industry, as it will make these products more accessible to consumers.
Hemp-Based Products Industry Developments
June 2023: Tilray Brands acquired Aphria, a Canadian cannabis company, for $4 billion. Tilray Brands is now the largest cannabis company in the world, and the acquisition of Aphria strengthens its position in the hemp-based products market.
March 2023: The World Health Organization (WHO) recommended that CBD be removed from Schedule I of the 1961 Convention on Single Narcotic Drugs. This recommendation, if adopted, would remove CBD from the list of most dangerous drugs and would help to promote the adoption of hemp-based products.
April 2023: Aurora Cannabis acquired CannMart, a Canadian online cannabis retailer, for $27 million. The acquisition of CannMart gives Aurora Cannabis a direct-to-consumer channel for selling hemp-based products.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 2.5 Billion |
| Market Size 2024 | USD 2.95 Billion |
| Market Size 2032 | USD 11.25 Billion |
| Compound Annual Growth Rate (CAGR) | 18.25% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2023 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, End Use, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Hempfoods Ltd., Tilray, Inc., GFR Ingredients, Hemp Foods Australia Pty Ltd, Aurora Cannabis Inc., Naturally Splendid Enterprises Ltd., Isodiol International Inc, Navitas LLC, Nutiva, T12 Holdings Pty Ltd. |
| Key Market Opportunities | The relaxation of legal and regulatory restrictions related to hemp cultivation and production. |
| Key Market Dynamics | Increased awareness and demand for natural and sustainable alternatives in various industries. |
Hemp-Based Products Market Highlights:
Frequently Asked Questions (FAQ) :
The Hemp-Based Products market size valued at USD 2.5 Billion in 2023.
The market is foreseen to rise at a CAGR of 18.20% during the forecast period of 2024-2032.
North America held the largest share in the market
The key players in the market are Hempfoods Ltd., Tilray, Inc., GFR Ingredients, Hemp Foods Australia Pty Ltd, Aurora Cannabis Inc., Naturally Splendid Enterprises Ltd., Isodiol International Inc, Navitas LLC, Nutiva, T12 Holdings Pty Ltd., etc.
The industrial category dominated the market in 2023.
Offline stores had the largest share in the market.
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