Hemp-based Products Market

Hemp-based Products Market Outlook (2023-2033)

The global market for hemp-based products is expected to account for a value of US$ 1.8 billion in 2023 and jump to a size of US$ 16.2 billion by the end of 2033. Sales of hemp-based products are projected to skyrocket at a CAGR of 24.5% from 2023 to 2033.

The legalization of hemp product sales and hemp farming in several countries across the world is a prominent factor that is expected to drive the shipments of hemp-based products over the coming years. New regulations and norms implemented by governments of different countries will crucially determine the future of hemp-based product demand.

• In November 2021, the Food Safety and Standards Authority of India (FSSAI) issued a new notification that allowed the sales of hemp seed flour and hemp seed oil as food products. This opened up new avenues for hemp-based product manufacturers in India and is expected to pave the road for the development of the hemp-based products industry in the country.

Increasing awareness about the benefits of consumption of CBD (Cannabidiol) products, growing scope of application for hemp, rising focus on providing eco-friendly products, rapid commercialization of hemp, and growing demand for hemp-based food products from the vegan population are prime aspects that could promulgate sales of hemp-based products in the future.

However, lack of awareness about the benefits of hemp, prohibition of hemp-based products in certain countries, and complex regulatory norms of legalization are expected to have a restraining effect on the overall market development throughout the forecast period.

Europe and North America collectively account for around 70% of the global market share at present and are expected to maintain a similar outlook over the coming years as well. Rapid legalization of marijuana and CBD products in these regions is expected to be a prominent factor that will help these regions sustain a dominant market share across the forecast period.

All the key trends, challenges, opportunities, and drivers affecting market development on a regional and global level have been discussed extensively in this updated hemp-based products research study by skilled analysts at Fact.MR, a market research and competitive intelligence provider.

Report Attributes	Details
Hemp-based Products Market Size (2023)	US$ 1.8 Billion
Projected Market Value (2033F)	US$ 16.2 Billion
Global Market Growth Rate (2023-2033)	24.5% CAGR
Europe & North America Market Share (2022)	~70%
Hemp-based products Market Value (2022)	US$ 1.4 Billion
Key Companies Profiled	Hempro International Tilray Inc. GFR Ingredients Blue Sky Hemp Ventures Ltd. Hemp Foods Australia Pty Ltd. Aurora Cannabis Inc. Marijuana Company of America Inc. Naturally Splendid Enterprises Ltd. Isodiol International Inc. Green Source Organics Hempfoods Ltd. Navitas LLC Nutiva T12 Holdings Pty Ltd.

How are Start-ups Complementing the Hemp-based Product Consumption Trend?

“New Companies Offering Novel Hemp-based Products and Promoting Them with Innovative Marketing Strategies”

Aspiring hemp-based product market players are expected to focus on the launch of new products that are taking advantage of the healing properties and nutritional properties of hemp.

• India Hemp and Co. was founded in 2019 by sisters Shalini and Jayanti Bhattacharya from Barcelona and Bengaluru. The company provides CBD and hemp-based products on online platforms such as Amazon, Nature’s Basket, and Big Basket in India.
• OG Hemp, an India-based start-up is creating paper from hemp plants to save trees and prevent deforestation. The company is currently the only one in the world that provides 100% hemp paper solutions and this makes it a highly lucrative organization. A rising focus on sustainability is expected to open up new avenues for OG Hemp over the coming years.

Start-ups are also focusing on raising capital to promote business expansion and fast-track the development of new and innovative products.

• In October 2022, Daye, a London-based start-up announced that it had raised around US$ 12 million in a Series A funding round. The company is known for selling tampons and other vaginal care products that are infused with CBD oil. The company was expected to use the funding to expand its business in the United States and support the launch of its at-home vaginal microbiome testing platform.
• In May 2022, Revoltech, a German start-up announced that it has closed a seed round in seven figures for its leather substitute made from 100% upcycled hemp waste materials. The company aims to revolutionize the leather industry with its LOVR (leather-like-without plastic-vegan-residue-based) alternate leather, based on the principles of the circular economy.
• In July 2021, Rainbow, a French start-up providing hemp-based products announced that it had raised around US$ 2 million in its latest funding round, which saw participation from Senseii Ventures and Artemis Growth. The company was expected to use this capital to expand into European markets such as Poland, Germany, and Italy.

Country-wise Insights

Which Country Leads Revenue Generation in North America?

“U.S. Anticipated to Spearhead Demand in North American Region”

Several states in the U.S. have been legalizing the use of cannabis and other hemp-based products which provides highly remunerative opportunities for hemp-based product suppliers in the country.

• In November 2022, Maryland and Missouri became the 20th and 21st states in the U.S. to legalize marijuana for adult use, and with this legalization, more than 50% of Americans are expected to have access to legal marijuana and other hemp-based products.

Increasing use of CBD products to treat diagnosed diseases, rising awareness of benefits associated with hemp consumption, growing use in the personal care industry, and high disposable income of the population are some of the key factors that determine hemp-based product demand in the country throughout the forecast period.

Will Japan Witness a Hike in Demand for Hemp-based Products?

“Rising Awareness Regarding Benefits of CBD Products”

CBD and hemp-derived products in Japan have been legal for a long time now, which makes it an attractive market for many hemp-based product manufacturers across the world.

• As per data provided by Statista, Japan is expected to be the second-largest CBD market in the Asian region following China which is expected to maintain its number one position over the coming years.

Rising inclination of the younger population towards consumption of hemp-based products, rising awareness about the benefits of CBD products, and revision of certain regulatory norms to pave the way for medicinal hemp-based products in Japan are key factors that could drive hemp-based product sales in the country over the coming years.

Is Germany an Investment-worthy Market for Hemp-based Product Suppliers?

“Possibility of Legalization of Cannabis Creating Opportune Business Scope”

Germany is one of the prominent countries in the European region that could move towards the legalization of cannabis for adults and this could clear the way for many hemp-based product providers and create a highly opportunistic setting.

• In October 2022, Germany revealed that it had plans to legalize cannabis, and should this happen it would make it the first country in Europe to legalize cannabis. The legalization of cannabis would pave the way for the consumption of hemp-based food products and create around 27,000 jobs in the country and save around US$ 4.7 billion.

The rising use of hemp in nutritional supplements, growing consumption by the geriatric population, increasing demand for CBD personal care products, and rising use in the automotive industry and textile industry are expected to be other factors that govern hemp-based product demand in the country through 2033.

Category-wise Insights

Where is Demand for Hemp-based Products Expected to Shine Bright?

“Hemp-based Product Shipments in Industrial Applications Expected to Dominate Market”

Based on application, the market for hemp-based products is segmented into personal and industrial.

Hemp-based product sales in industrial applications account for a major market share and are expected to maintain a similar stance throughout the forecast period. This can be primarily ascribed to the high use of hemp fibers in the textile industry and the growing use of hemp seed oil in the pharmaceutical industry. Growing scope of application in the food and beverages industry is also expected to contribute to growth in industrial application’s market share through 2033.

However, the legalization of marijuana in several countries across the world is expected to propel the demand for hemp-based products for personal use at a high pace over the coming years.

Competitive Landscape

Key hemp-based product companies are expected to expand their hemp product portfolio to gain a competitive edge over other market players and diversify their offerings to different regions where hemp and marijuana are being legalized.

• In August 2022, BioLife Sciences Inc., a leading name in disruptive technologies for healthcare, beauty, food & beverage sectors announced the launch of its first cannabinoid consumer products. The company offered six definite industrial hemp-based tincture formulations that were driven by the acquisition of Health Box LLC in early 2022.
• In August 2022, TagZ Foods, a snack food company in India announced the launch of hemp-based cookies as a part of its aggressively increasing product offerings. The products are available on Swiggy Instamart and the company’s portal for sales.

Key Segments of Hemp-based Products Industry Research

• By Product :

  • Food
    • Beverages
    • Edibles
  • Health Care
    • Hemp Oil
    • Medicinal Drugs
    • Supplements & Protein
  • Cosmetics, Personal & Skin Care
  • Fibers
    • Raw Fibers
    • Fiber-reinforced plastic
  • Others

• By Application :

  • Personal
  • Industrial

• By Sales Channel :

  • Offline
  • Online

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA