Increasing awareness, further legalization send sales projections soaring over the next decade.
Global hemp-based products market is projected to grow at an impressive compound annual growth rate (CAGR) of more than 23% between 2019 and 2029, surpassing a valuation of $19B by 2029, according to a new report from market analyst Fact.MR.
Hemp has been plowed by farming communities in various corners of the world, but at present hemp is seeing an astonishing rebirth as it has the potential to be a profitable and sustainable crop. Globally, more than four dozen economies have legitimized the adoption of hemp-based products. Thousands of hemp-based products have surfaced in the global marketplace, predominantly in the textile, medical, and food and beverage sectors.
Presently, hemp-based products are occupying a large space on shelves within major retail outlets and online stores, which in turn is boosting its market revenues. However, modern-day market actors are vested with many more responsibilities, with product marketing being a key component to attract a large consumer base. Owing to increased awareness about benefits of the hemp-based products, a rise has been observed in consumer preferences towards purchase of hemp products such as hemp oil, beverages, medicinal drugs, cosmetics and fibers which is likely to continue in the foreseeable future.
Key Takeaways of Hemp-Based Market
- Close to half of the revenues procured in the global hemp-based products market through 2029 will be accounted for by fibers segment. At the same time, demand for hemp based food & cosmetic products is showing resilient growth owing to the increasing awareness about nutritional benefits of hemp based products.
- Hemp oil has become a preferred choice for consumers for its skin treatment superiority and has also been legalized in many countries. In the healthcare category, hemp oil segment is foreseen to witness 2X more revenues than medicinal drug segment.
- In 2019, specialty stores, supermarkets & hypermarkets accrued for the highest sales. However, Fact.MR estimates that among distribution channels, the online segment will grow at a meteoric pace with market growth over 27% throughout the forecast period.
- As a direct outcome of legalization and commercialization of hemp-based products in US & Canada, North America has become the largest producer of hemp, as well as hemp-based products. On this premise, North America is expected to contribute around 1/3 of the global revenues by the end of 2029.
New Markets, New Products
The emergence of hemp-based products in North America is on the rise, owing to the legalization of hemp-based products in major countries such as US and Canada. Also, market actors are gravitating towards diversification of their product portfolio by innovating new products. For Instance, In December 2019, Canadian hemp based products manufacturer Canopy Growth debuted in the US market. At the same time, in October 2019, another leading manufacturer of the hemp based products- Good Hemp launched CBD plant-based milk in UK.