Hemp Fibre Market to Reach up to 73 billion by 2030

Overview

The global hemp fibre market is witnessing remarkable growth, with a growing demand for fibre, seed, stalks, hurds, and oils. According to several new reports, the global hemp market is projected to expand from approximately USD 4.1 ~ 7.9 billion in 2022 to an estimated USD 23.5 ~ 73.5 billion by 2030, at a Compounded Annual Growth Rate of between 17.5% ~ 39.1%. (see: Sources & Full Reports)

This surge is largely driven by the increasing adoption of hemp fibre in clothing, food & beverage, pet care, personal care, paper, consumer, automotive, construction and therapeutic industries due to its sustainability and durability as well as rising awareness of its diverse properties and applications, and legislative changes favouring hemp cultivation. Despite facing challenges like certain remaining legislative frameworks and processing inefficiencies, the market is young, extremely promising, and presents vast opportunities for intrepid entrepreneurs to develop and expand it.

Key Drivers and Trends

Legalization and FAVOURABLE Policies

The legalization of industrial hemp cultivation in various countries, such as the U.S., Canada, and European nations, has significantly boosted the supply of hemp fibres. This has been further supported by favourable government policies promoting sustainable and eco-friendly materials.

Growing Demand for Sustainable Materials

Growing awareness of environmental issues and the demand for sustainable materials are propelling the hemp fibre market. Hemp fibre’s biodegradability, sustainability, and low chemical requirements in cultivation, and regenerative attributes as a crop make it an attractive choice for eco-conscious industries and consumers.

Existing & Increasing Applications

Hemp fibre is diversifying its applications, from food & beverage, to automotive, construction materials and textiles. Its properties, such as high tensile strength, UV resistance, high nutrient content, and high insulative properties make it a versatile material for various expanding industries, with new applications being discovered regularly.

Opportunities and Challenges

Rising Deman for Bioplastics & New Applications

The growing emphasis on sustainability is expected to spur demand for things like hemp-based bioplastics, construction materials; such as Hempcrete, and new and interesting applications such as superconductors, biofuel, medicinal, 3D printing, and advanced composite for the aerospace and automotive industry, in the coming years.

High Processing Costs and Regulatory Ambiguities

Complex regulatory and legal frameworks and varying definitions of Industrial Hemp are still working to catch up in some areas, such as CBD therapeutic applications, and limited processing facilities and infrastructure are remaining challenges to market growth. However, investments in research and supply chain optimization are expected to mitigate these challenges and provide opportunities for early movers.

Market Segmentation

By Product

  • Hemp Seeds: Led the market in 2023 with a revenue share of over 29.97%. Widely used in food, beverages, animal feed, cosmetics, and pharmaceuticals.

  • Hemp Fibres: Applications include paper, carpeting, construction materials, auto parts, and composites. Hemp hurd is used in animal bedding materials due to high absorbency.

  • Hemp Oil: Significant in food & beverages, cosmetics, personal care, and construction materials. Increasingly used in products such as insulation, fibreboard, polymers and coatings.

By Source

  • Organic: The fastest-growing segment, driven by consumer preference for organic products.

  • Conventional: Consistently growing to provide access to a sustainable crop.

By Application

  • Textiles: The fastest-growing segment, with a CAGR of 32.1%, attributed to hemp fiber's hypoallergenic and UV-resistant properties.

  • Paper Manufacturing: Growing demand for sustainable paper products is fueling the adoption of hemp fiber.

  • Automotive & Construction: Hemp fiber is emerging as a sustainable alternative in these sectors due to its durability, strength and eco-friendliness.

Regional Analysis

North America

By most accounts, dominating the market with approximately a 33-38% revenue share in 2023, propelled by increased hemp cultivation in the U.S. and its diverse industrial applications. The major consumer with a significant presence in application industries, North America is experiencing a rising demand for hemp oil in the personal care sector. Initiatives to net zero carbon targets are also incentivizing utilization in eco-friendly construction materials.

Asia-Pacific

A close second to North American dominance of the market, and by some accounts surpassing, with a revenue share of approximately 22-33% in 2023. the Asia-Pacific region is witnessing increased adoption of hemp fibre in textiles, clothing, and building materials. Government initiatives and growing consumer awareness are driving this growth and advancing technologies are making hemp harvesting more efficient. Key economies involved include China, India, Japan, and Australia.

Europe

Expected to grow at a CAGR of 32.40%, Europe is actively promoting the use of hemp fiber as a sustainable alternative, particularly in textiles and construction materials. Consumption is primarily in automotive parts, construction materials, and textiles and increasing demand for hemp oil in food, supplements, cosmetics, and personal care.

Competitive Landscape

Key players in the global hemp fibre market, such as Canvaloop, Cone Denim LLC, and Ecofibre Ltd., are focusing on strategic initiatives like partnerships, mergers, and product innovations to expand their market presence. Recent developments include:

  • Panda Biotech & Southern Ute Growth Fund Collaboration: Aimed at promoting sustainable hemp production in the U.S.

  • Toyoshima's Investment in FyberX: Supporting regenerative hemp fiber production.

  • Cone Denim & Bast Core Partnership: Launching sustainable denim products.

Conclusion

The global hemp fiber market is poised for significant growth, driven by sustainability trends, increasing applications, and regional initiatives promoting hemp cultivation and utilization. Despite challenges, the market offers vast opportunities for innovation and development, making it a focal point for investors, policymakers, and industry stakeholders. As infrastructure and regulatory landscapes evolve and research continues, the market holds promising opportunities for stakeholders across the value chain.