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Hemp products to soar on back of increasing awareness and government legalisation

Article-Hemp products to soar on back of increasing awareness and government legalisation

The global hemp-based products market is projected to grow at a CAGR of more than 23% between 2019 and 2029, surpassing a valuation of $19Bn by 2029. 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 legitimised the adoption of hemp-based products. Thousands of hemp-based products have surfaced in the global marketplace, predominantly in the textile, medical, and food & 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 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 considerations for the hemp-based products market

  • Close to half of the revenues procured in the global hemp-based products market through 2029 will be accounted for by the fibres segment. At the same time, demand for hemp based food and cosmetic products is showing resilient growth owing to the increasing awareness about known nutritional benefits.
  • Hemp oil has become a preferred choice for consumers for its skin treatment superiority, proven benefits, and legal status in many countries. According to Fact.MR, in the healthcare category, hemp oil segment is expected to witness 2X more revenues than medicinal drug segment.
  • In 2019, specialty stores and in-person supermarkets and hypermarkets accrued for the highest sales. However, studies estimate 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 legalisation and commercialisation of hemp based products in the 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 to a third of the global revenues by end 2029.

Manufacturers exploring new markets and introducing new products as performance levers

The emergence of hemp-based products in North America is on the rise, owing to the legalisation of hemp-based products in major countries such as US and Canada. Additionally, 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.