Hemp Derivative Trends and Forecast
The future of the global hemp derivative market looks promising with opportunities in the food & beverage, pharmaceutical, personal care, and textile markets. The global hemp derivative market is expected to reach an estimated $15.2 billion by 2030 with a CAGR of 15.3% from 2024 to 2030. The major drivers for this market are expanding area of industrial hemp cultivation, widening range of hemp-based products, and growing demand from key end-use industries.
• Lucintel forecasts that, within the type category, hemp fiber will remain the largest segment over the forecast period due to increasing demand from paper and textile industry.
• Within the application category, textile will remain the largest segment as hemp textiles are stronger and are more durable than other natural fibers.
• In terms of regions, APAC will remain the largest region over the forecast period due to substantial investment in the production technology for hemp and high number of authorized cultivations in the region.
A more than 150-page report is developed to help in your business decisions.
Emerging Trends in the Hemp Derivative Market
The hemp derivative market is evolving with several emerging trends that are shaping its future and expanding its applications.
• Expansion into the Food and Beverage Industry: One of the most significant emerging trends is the incorporation of hemp derivatives, particularly CBD, into the food and beverage industry. Products like CBD-infused drinks, snacks, and supplements are gaining traction as consumers seek out functional foods that promote wellness. This trend is driven by increasing consumer awareness of the potential health benefits of hemp derivatives.
• Growth in the Skincare and Cosmetics Sector: The use of hemp derivatives in skincare and cosmetics is another growing trend. Hemp seed oil and CBD are being incorporated into a wide range of beauty products, including creams, serums, and balms, due to their purported anti-inflammatory and antioxidant properties. This trend is fueled by the demand for natural and sustainable ingredients in personal care products.
• Focus on Sustainable and Organic Cultivation: As consumer demand for environmentally friendly products grows, there is a rising trend towards sustainable and organic hemp cultivation. Farmers are adopting practices that reduce environmental impact, such as using organic fertilizers, implementing crop rotation, and minimizing water usage. This trend is expected to enhance the appeal of hemp-derived products to eco-conscious consumers.
• Increased Investment in Research and Development: There is a growing trend of investment in research and development (R&D) within the hemp derivative market. Companies are exploring new extraction methods, developing innovative products, and studying the therapeutic effects of hemp derivatives. This focus on R&D is likely to lead to the introduction of more effective and diverse hemp-based products.
• Rise of Hemp-Derived Pharmaceuticals: The pharmaceutical sector is beginning to explore the potential of hemp derivatives for treating a variety of conditions, such as epilepsy, chronic pain, and anxiety. This trend is marked by increasing clinical trials and the development of new hemp-based medications, which could significantly expand the market’s scope.
• Regulatory Advancements and Standardization: Regulatory changes and the move towards standardization are emerging trends in the hemp derivative market. Countries are refining their regulations to ensure product safety, quality, and consistency, which is expected to boost consumer trust and market growth. Standardization efforts are also facilitating international trade and the global expansion of hemp-derived products.
The hemp derivative market is experiencing several emerging trends, such as expansion into food and beverages, growth in skincare, and sustainable cultivation practices, which are driving innovation and broadening the marketÄX%$%Xs applications.
Recent Developments in the Hemp Derivative Market
The hemp derivative market has seen a range of recent developments that are accelerating its growth and diversification.
• Launch of New Hemp-Based Products: There has been a significant increase in the launch of new hemp-derived products, particularly in the wellness and personal care sectors. Companies are introducing a variety of CBD-infused products, including oils, gummies, skincare items, and beverages, catering to the rising consumer interest in natural health solutions. These product launches are helping to diversify the market and attract a broader consumer base.
• Technological Advancements in Extraction Processes: Recent developments in extraction technology are enhancing the efficiency and quality of hemp derivative production. Innovations such as supercritical CO2 extraction and ethanol extraction are enabling the production of high-purity CBD and other cannabinoids. These advancements are crucial for meeting the growing demand for high-quality hemp derivatives in various applications.
• Expansion of Hemp Cultivation: The hemp derivative market is witnessing an expansion of hemp cultivation across various regions, driven by favorable regulatory changes and increased demand. Countries like the United States, Canada, and China are scaling up their hemp farming operations, with significant investments in infrastructure and cultivation practices. This expansion is expected to ensure a steady supply of raw materials for the hemp derivative industry.
• Strategic Partnerships and Acquisitions: The market is seeing an increase in strategic partnerships and acquisitions as companies seek to strengthen their positions and expand their product offerings. For example, collaborations between hemp producers and pharmaceutical companies are becoming more common, aiming to develop new therapeutic products. These strategic moves are likely to enhance the market’s growth prospects and foster innovation.
• Regulatory Progress and Clarifications: Recent regulatory developments are shaping the future of the hemp derivative market. Governments are providing clearer guidelines on the cultivation, processing, and sale of hemp derivatives, particularly CBD products. These regulatory clarifications are helping to eliminate market uncertainties, encourage investment, and promote consumer confidence.
• Consumer Education and Awareness Campaigns: There has been a notable increase in consumer education efforts aimed at raising awareness about the benefits of hemp derivatives. Companies and industry associations are launching campaigns to inform the public about the potential health benefits, safety, and legality of hemp-derived products. These initiatives are playing a crucial role in driving market growth by increasing consumer acceptance and demand.
Recent developments in the hemp derivative market, such as new product launches, technological advancements, and regulatory progress, are driving the market’s expansion and diversification, positioning it for continued growth.
Strategic Growth Opportunities for Hemp Derivative Market
The hemp derivative market presents several strategic growth opportunities across various key applications, driven by increasing consumer demand and innovation.
• Expansion in the Food and Beverage Industry: The food and beverage industry offers significant growth opportunities for hemp derivatives, particularly CBD. As consumers become more health-conscious, there is a rising demand for functional foods and beverages infused with CBD, which are marketed for their potential wellness benefits. Companies can capitalize on this trend by developing new product lines that cater to this growing segment.
• Growth in the Skincare and Cosmetics Sector: The skincare and cosmetics sector is another key application area with substantial growth potential. Hemp seed oil and CBD are being increasingly incorporated into beauty products due to their moisturizing and anti-inflammatory properties. Companies can explore this opportunity by launching hemp-based skincare products that appeal to consumers seeking natural and sustainable beauty solutions.
• Pharmaceutical Applications: The pharmaceutical sector represents a significant growth opportunity for hemp derivatives, particularly in the development of CBD-based medications. Ongoing research into the therapeutic effects of cannabinoids is opening up new possibilities for treating conditions such as epilepsy, chronic pain, and anxiety. Companies that invest in clinical trials and drug development can potentially capture a large share of this emerging market.
• Pet Care Products: The pet care industry is an emerging application area for hemp derivatives. Products such as CBD-infused pet treats and supplements are gaining popularity among pet owners looking for natural alternatives to traditional medications. This segment offers growth opportunities for companies that can develop safe and effective hemp-based products for pets.
• Nutraceuticals and Supplements: The nutraceutical and supplement market is another promising application area for hemp derivatives. With growing interest in preventive health, consumers are increasingly turning to hemp-based supplements for their potential benefits in stress relief, sleep improvement, and overall wellness. Companies can tap into this market by offering high-quality, scientifically-backed hemp supplements.
• Industrial Applications: Beyond health and wellness, there are growth opportunities for hemp derivatives in industrial applications, such as textiles and construction materials. Hemp fibers and oils are being explored for their potential in creating sustainable and durable products. Companies that invest in research and innovation in these areas can access new markets and contribute to the development of eco-friendly alternatives.
The hemp derivative market offers strategic growth opportunities across various applications, including food and beverages, skincare, pharmaceuticals, and industrial uses, driven by innovation and increasing consumer demand.
Hemp Derivative Market Driver and Challenges
The hemp derivative market is influenced by a range of drivers and challenges that shape its growth and development.
The factors responsible for driving the hemp derivative market include:
• Increasing Consumer Demand for Natural Products: One of the primary drivers of the hemp derivative market is the growing consumer demand for natural and organic products. As people become more health-conscious, there is a rising interest in products derived from hemp, particularly CBD, which is perceived as a natural remedy for various health issues. This trend is driving the expansion of hemp-derived products across multiple sectors, including wellness, beauty, and food.
• Favorable Regulatory Environment: The relaxation of regulations surrounding hemp cultivation and the use of hemp derivatives, particularly in regions like North America and Europe, is a significant driver of market growth. Governments are increasingly recognizing the potential benefits of hemp and CBD products, leading to the legalization and regulation of these products. This favorable regulatory environment is encouraging investment and innovation in the hemp industry.
• Advancements in Extraction and Processing Technologies: Technological advancements in the extraction and processing of hemp derivatives are enabling the production of high-quality CBD and other cannabinoids. These advancements are crucial for meeting the growing demand for hemp-based products, ensuring consistency and purity, and reducing production costs. Companies that leverage these technologies can gain a competitive advantage in the market.
• Expansion of Hemp Cultivation: The expansion of hemp cultivation, particularly in countries like the United States, Canada, and China, is another key driver of the market. Increased cultivation is ensuring a steady supply of raw materials for the production of hemp derivatives, which is essential for meeting the rising demand in various industries. This expansion is also supporting the growth of the global hemp supply chain.
• Growing Awareness of Health Benefits: There is increasing awareness among consumers about the potential health benefits of hemp derivatives, particularly CBD. Research and media coverage have highlighted the therapeutic properties of CBD in managing conditions such as anxiety, chronic pain, and sleep disorders. This growing awareness is driving consumer interest and boosting demand for hemp-derived health products.
Challenges in the hemp derivative market are:
• Regulatory Complexity and Uncertainty: Despite progress, the regulatory landscape for hemp derivatives remains complex and varies significantly across different regions. This complexity can create challenges for companies attempting to navigate different legal frameworks, leading to delays in product launches and increased compliance costs. Regulatory uncertainty also poses risks for businesses operating in the global market.
• Quality Control and Standardization Issues: Ensuring consistent quality and standardization of hemp-derived products remains a challenge in the industry. Variations in product quality, due to differences in cultivation practices, extraction methods, and manufacturing standards, can affect consumer trust and market growth. The lack of standardized testing and certification processes further complicates this issue.
• Competition from Synthetic Alternatives: The hemp derivative market faces competition from synthetic cannabinoids, which are being developed as alternatives to naturally derived compounds. These synthetic products can be produced at a lower cost and with greater consistency, potentially impacting the demand for natural hemp derivatives. Companies in the hemp industry must differentiate their products to compete effectively with these alternatives.
• High Production Costs: The production of high-quality hemp derivatives, particularly CBD, can be expensive due to the costs associated with cultivation, extraction, and processing. These high production costs can result in higher prices for end products, limiting their accessibility to price-sensitive consumers. Companies need to find ways to reduce costs without compromising quality to remain competitive.
• Market Saturation and Competition: As the hemp derivative market grows, it is becoming increasingly competitive, with many new players entering the industry. This market saturation can make it challenging for companies to differentiate their products and capture market share. Businesses need to focus on innovation, branding, and customer education to stand out in a crowded market.
• Public Perception and Stigma: Despite growing acceptance, there is still some stigma associated with hemp derivatives, particularly CBD, due to their association with cannabis. Misconceptions about the psychoactive effects of CBD and concerns about its legal status can deter some consumers from trying these products. Companies need to invest in education and marketing efforts to address these perceptions and build consumer trust.
The hemp derivative market is driven by factors such as increasing consumer demand for natural products and favorable regulations, but it also faces challenges related to regulatory complexity, quality control, and competition from synthetic alternatives.
List of Hemp Derivative Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies hemp derivative companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the hemp derivative companies profiled in this report include-
• Hemp Oil Canada
• GenCanna
• Ecofibre
• MH Medical Hemp
• Konoplex
• Canopy Growth
• HempFlax
• HemPoland
• Bafa Neu
• Hempco
Hemp Derivative by Segment
The study includes a forecast for the global hemp derivative by type, application, and region.
Hemp Derivative Market by Type [Analysis by Value from 2018 to 2030]:
• Hemp Oil
• Hemp-Derived CBD Oil
• Hemp Fiber
• Others
Hemp Derivative Market by Application [Analysis by Value from 2018 to 2030]:
• Food & Beverages
• Pharmaceuticals
• Personal Care
• Textile
• Others
Hemp Derivative Market by Region [Shipment Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Hemp Derivative Market
Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. The image below highlights recent developments by major hemp derivative market producers in key regions: the USA, China, India, Germany, and Japan.
• United States: The hemp derivative market in the United States has been bolstered by the 2018 Farm Bill, which legalized hemp cultivation and opened the door for various hemp-based products. Recently, there has been a surge in the production of cannabidiol (CBD) derivatives, with numerous companies entering the market to develop CBD-infused wellness products, cosmetics, and dietary supplements. The U.S. market is also seeing increased investment in research and development to explore new applications of hemp derivatives, particularly in the pharmaceutical and nutraceutical sectors. Additionally, several states are establishing regulations to ensure product quality and safety, further boosting consumer confidence.
• Canada: In Canada, the legalization of cannabis has significantly impacted the hemp derivative market, leading to a growing demand for CBD products. Canadian companies are expanding their product portfolios to include a wide range of hemp-derived products, such as CBD oils, edibles, and topicals. The country is also seeing advancements in hemp processing technologies, enabling more efficient extraction and production of high-quality derivatives. Moreover, Canadian hemp producers are increasingly focusing on sustainability, with efforts to develop eco-friendly cultivation practices and biodegradable packaging for hemp-based products. Government support for the hemp industry, through grants and research funding, is also driving market growth.
• Germany: GermanyÄX%$%Xs hemp derivative market is rapidly expanding, driven by the countryÄX%$%Xs progressive stance on cannabis and hemp regulation. Recent developments include the introduction of CBD products in mainstream retail outlets, making them more accessible to consumers. German companies are also investing in research to explore the therapeutic potential of hemp derivatives, particularly in treating anxiety, pain, and sleep disorders. Furthermore, the market is benefiting from increased consumer awareness of the health benefits of CBD, leading to higher demand for hemp-derived supplements and cosmetics. GermanyÄX%$%Xs regulatory framework is also evolving to ensure product safety and standardization, which is expected to further stimulate market growth.
• Australia: AustraliaÄX%$%Xs hemp derivative market is growing steadily, supported by the countryÄX%$%Xs regulatory changes that allow the use of hemp in food and wellness products. Recent developments include the launch of new hemp-based foods, beverages, and nutraceuticals that are gaining popularity among health-conscious consumers. Australian companies are also exploring the use of hemp derivatives in the skincare and cosmetics industry, capitalizing on the trend towards natural and sustainable ingredients. Additionally, there is increasing investment in hemp cultivation, with farmers adopting innovative practices to improve yield and quality. The Australian government is actively supporting the hemp industry through research initiatives and grants aimed at promoting sustainable hemp farming.
• China: ChinaÄX%$%Xs hemp derivative market is experiencing significant growth, driven by the countryÄX%$%Xs position as a major hemp producer. Recent developments include the expansion of hemp cultivation areas, particularly in the Yunnan province, which has become a hub for hemp production. Chinese companies are focusing on the export market, with a growing demand for hemp-derived CBD products in Europe and North America. Additionally, there is increasing interest in the industrial applications of hemp derivatives, such as in textiles and construction materials. The Chinese government is also playing a key role in regulating the industry and promoting the use of hemp in various sectors, further boosting market growth.
Features of the Global Hemp Derivative Market
Market Size Estimates: Hemp derivative market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Hemp derivative market size by type, application, and region in terms of value ($B).
Regional Analysis: Hemp derivative market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the hemp derivative market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the hemp derivative market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q1. What is the hemp derivative market size?
Answer: The global hemp derivative market is expected to reach an estimated $15.2 billion by 2030.
Q2. What is the growth forecast for hemp derivative market?
Answer: The global hemp derivative market is expected to grow with a CAGR of 15.3% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the hemp derivative market?
Answer: The major drivers for this market are expanding area of industrial hemp cultivation, widening range of hemp-based products, and growing demand from key end-use industries.
Q4. What are the major segments for hemp derivative market?
Answer: The future of the hemp derivative market looks promising with opportunities in the food & beverage, pharmaceutical, personal care, and textile markets.
Q5. Who are the key hemp derivative market companies?
Answer: Some of the key hemp derivative companies are as follows:
• Hemp Oil Canada
• GenCanna
• Ecofibre
• MH Medical Hemp
• Konoplex
• Canopy Growth
• HempFlax
• HemPoland
• Bafa Neu
• Hempco
Q6. Which hemp derivative market segment will be the largest in future?
Answer: Lucintel forecasts that hemp fiber will remain the largest segment over the forecast period due to increasing demand from paper and textile industry.
Q7. In hemp derivative market, which region is expected to be the largest in next 5 years?
Answer: APAC will remain the largest region over the forecast period due to substantial investment in the production technology for hemp and high number of authorized cultivations in the region.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the hemp derivate market by type (hemp oil, hemp-derived CBD oil, hemp fiber, and others), application (food & beverages, pharmaceuticals, personal care, textile, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Hemp Derivative Market, Hemp Derivative Market Size, Hemp Derivative Market Growth, Hemp Derivative Market Analysis, Hemp Derivative Market Report, Hemp Derivative Market Share, Hemp Derivative Market Trends, Hemp Derivative Market Forecast, Hemp Derivative Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.