Hemp Derivatives Market Trends

Global Hemp Derivatives Market Overview

The global Hemp Derivatives Market size is expected to reach USD 56.8 billion in 2030. The hemp derivatives market is growing at a very fast rate with an increase in awareness about the ecological and environmental benefits of hemp products. Various Hemp derivatives like hemp fiber, Hemp CBD oil, Hemp food & feed have good demand in the global market. 

Hemp derivatives are commercial products derived from the Hemp plant ( Cannabis sativa L. ). Industrial Hemp is different fssrom Cannabis for having a THC content of less than 0.3 % by dry weight. The environmental benefits of hemp cultivation for it being a resource-conserving crop and excellent properties of hemp products is leading to an increase in the total cultivation area. The global hemp derivatives market is expected to grow at a Compound Annual Growth Rate ( CAGR ) of 32.3% per cent over the current forecast period ( 2024-2030).

Hemp fibers obtained from the bark of the hemp plant are used for making quality textiles, ropes, etc and inner hurds are used for making paper and biocomposites. Additionally, Hemp seeds are rich in nutrients and hemp oil also has several pharmaceutical uses. The Global market value is expected to be worth USD 56.8 billion by the end of the current forecast period in 2030.

March 2024: Hempacco Co., Inc. has announced the strategic purchase of a portion of the assets owned by Covalent CBD, a leading white-label and private-label nutraceutical firm. This move is part of a strategic move that is intended to greatly strengthen the company's production capabilities and client base in the nutraceutical market. This purchase represents a key milestone in Hempacco's continued attempts to extend its influence in the market of mushroom nutritional supplements and hemp nutritional supplements, both of which are seeing tremendous growth.

White-label and private-label production are two areas in which Covalent CBD has established itself as a dominant force. The company is well-known for its wide customer base and powerful procurement network in the nutritional supplement business, particularly within the hemp industry. Not only does the purchase of a part of Covalent CBD's assets by Hempacco promise to expand the company's service offerings, but it also gives the company the opportunity to strengthen its position as a prominent player in the nutraceutical sector.

The knowledge and experience that Covalent CBD has in the production of a diverse range of nutritional supplements ought to serve as a beneficial basis for Hempacco in its efforts to serve new consumers under the new manufacturing umbrella. In addition, the fact that Hempacco has decided to keep the management team that Covalent CBD originally employed should make it easier for the company to expand its product offerings and production operations at its cutting-edge manufacturing facility in San Diego, California.

This newly formed collaboration currently provides white-label and private-label research and development as well as manufacturing services, specializing in projects that are driven by intellectual property, such as:

• The extraction of mushrooms using just water and magnets • Research and development and manufacture of beverages and substances derived from hemp and useful mushrooms


• The manufacturing of gummies, including the use of bespoke molds, including mushrooms, Delta 9, Delta 8, CBD, CBN, and other cannabinoids


• The creation of tablets, capsules, tinctures, and other nutraceuticals utilizing Hempa's intellectual property


• Manufacturing of smoking paper made from hemp briquettes

Covid 19 Analysis

Covid-19 pandemic had a mixed impact on the Global hemp derivatives market. The temporary shutting down of Industrial units led to a significant fall in the production of hemp derivatives. Moreover, there was also a decline in the sale of hemp derivatives during the period owing to the financial constraints on individuals. Furthermore, restrictions on travel and movement of goods hampered the distribution and supply chain of the Global market. However, the increase in awareness on investment in health products will help in the market growth of hemp derivatives like Hemp CBD oil and Hemp food.

Hemp Derivatives Market Trends

Drivers

The increasing area of industrial hemp cultivation is the major factor driving the growth of the Global hemp derivatives market. This increase in area is due to an increase in demand for hemp products, especially hemp fiber and CBD oil. The economical and environmental advantages of hemp plants are forcing governments around the world to make changes to existing strict laws on hemp cultivation. Moreover, Hemp is not a resource-intensive crop and also gives much more additional benefits than any other fiber crop.

The demand for hemp-based textiles, and other hemp fiber products is increasing rapidly owing to their superior quality like strength, durability, and texture. Similarly, the rise in the use of modern construction materials in the automotive and construction sector is generating huge demand for stronger hemp biocomposites. Moreover, the emerging concept of hemp paper and bioplastic from hemp plants is likely to boost the market growth. Furthermore, new developments in nutrient-rich food and feed from hemp seeds are also contributing to the demand generation. The growing pharmaceutical use of hemp CBD oil is one of the promising segments of the global hemp derivatives market.

Restraints

The strict government regulations for starting commercial hemp cultivation are a serious restraint for the Global hemp derivatives market. Moreover, stringent regulatory approvals for industrial hemp derivatives are hampering the market growth.

Technology Analysis

Hemp derivatives are commercial products obtained from the Industrial hemp plant i.e. Cannabis sativa L., having a THC content of not more than 0.3 % by dry weight on any part. Hemp derivatives such as hemp fiber, hemp seeds, hemp seed oil, Hemp-Derived CBD Oil, biocomposites, bioplastics, hemp paper have good industrial value.

Hemp fiber is obtained from the bark of the hemp plant and inner softwood is an excellent material for making biocomposites. Hemp seeds are nutritious food and are also used for extracting hemp oil.

Hemp fibers are used for producing premium quality textiles, ropes, insulation products, etc. Hemp oil is excellently rich in polyunsaturated fatty acids ( PUFA ) like Omega-3, Linoleic acid, and vitamins making it a suitable cooking oil for health-conscious people. Hemp-derived CBD oil that contains higher levels of cannabidiol is a highly demanding pharmaceutical product. Furthermore, other products derived from hemp plants such as Hemp seed food, hemp feed have good nutritional and market value.

Study Objectives

The specific objectives of this market report are given below:

• To provide a complete overview of the market.


• To analyze and forecast the hemp derivatives market in terms of value and volume.


• To provide information about the impact of covid 19 on the market and market response thereafter.


• To point out the problems and prospects of the hemp derivatives market.


• To give product manufacturing details.


• To provide an overview of the regional market and potentially growing segments.


• To identify the key players of the hemp derivatives industry.

Hemp Derivatives Market Segmentation

Hemp Derivatives Type Outlook

• Hemp Oil


• Hemp-Derived CBD Oil


• Hemp Fiber


• Others

Hemp fiber is the largest segment owing to high demand in the textile sector and paper industry. The sturdiness and quality of hemp fiber make it suitable for making not only clothes but also rope, bags, insulating materials, etc. Furthermore, hemp cultivation is less energy-intensive making it a sustainable crop in comparison with other fiber crops. However, hemp-derived CBD oil is getting a good response from the market due to its immense pharmaceutical benefits.

Hemp Derivatives Application Outlook

• Food & Beverages


• Pharmaceuticals


• Personal Care


• Textile


• Others

The textile industry makes most of the demand for hemp derivatives i.e. hemp fiber. Hemp textiles are stronger and more durable than other natural fibers. They are highly comfortable, attractive, and have antimicrobial properties that fetch them a good price in the market.

The pharmaceutical segment is also witnessing rapid growth with an increase in awareness about the medicinal benefits of CBD oil. Moreover, the legalization of the use of CBD oil for medical reasons is acting as a booster to the market growth.

Hemp Derivatives Regional Outlook

The different regional markets for the global hemp derivatives market are:

Americas

• North America


• US


• Canada


• Mexico


• South America

 Europe

• UK


• Germany


• France


• Italy


• Spain


• Rest of Europe

 Asia-Pacific

• China


• India


• Japan


• Australia & New Zealand


• Rest of Asia-Pacific

 Rest of the world ( RoW )

• The Middle East


• Africa

Asia-Pacific is the largest regional segment of the Global hemp derivatives market accounting for about 30% of the total market share. China is the leading producer and exporter of home products globally. Significant investment in hemp production technology and increasing legal cultivation are favoring the market growth in this region.

Europe also occupies a significant share in the global market. There is a high demand for hemp biocomposites for use in the automotive and construction industries. Moreover, the hemp paper industry is also gaining momentum leading to market growth in this region.

There is a high demand for hemp derivatives in the American market but stringent cultivation laws are hampering the market growth. The market for Hemp food and hemp oil having nutritional and medical benefits is increasing significantly. The market in the Middle East and African segment is expected to grow at a moderate rate over the forecast period.

Competitive Landscape

The major global companies playing a key role in the hemp derivatives market are :

• Hemp Oil Canada 


• GenCanna Global USA, Inc. (US)


• Ecofibre (Australia)


• MH Medical Hemp GmbH (Germany)


• Konoplex LLC (Russia)


• Canopy Growth Corporation (Canada)


• HempFlax Group B.V. (Netherlands)


• HemPoland (Poland)


• Bafa Neu GmbH (Germany)


• Hempco Inc. (Canada)


• Dutch Hemp Group (Netherlands)


• Colorado Hemp Works, LLC (US)

Recent Developments

In November 2021, Premier CBD Hub, a leading direct seller of cannabidiol products announced the launch of its new website and premium products. The website premiercbdhub.com is a one-place solution for getting all CBD Hub's products.

Intended Audience

This report will be beneficial for every stakeholder of the hemp derivatives market such as :

• Hemp derivatives Manufacturers


• Regulatory Bodies


• R&D institutes


• Potential Investors


• End users

Report Overview

This report from Market Research Future provides an in-depth analysis of the hemp derivatives market in terms of current value and future forecast. This report has highlighted the problems and prospects of the given market. Moreover, the technological analysis section of the report will greatly help in knowing the product and its market prospects.   Furthermore, this report contains a detailed analysis of every segment of the given market for the current forecast period. This report has also highlighted the key players and the current developments in the market.