According to a new report by Markets and Markets, the Industrial Hemp Market size is projected to reach USD 18.1 billion by 2027 after hitting USD 6.8 billion in estimated value and recording a CAGR (compound annual growth rate) of 21.6% in terms of value in the year 2022.
This market evaluation was based on the growing popularity and recent spike in the production of wide range of hemp based beverages such as cereals, yogurts, protein powders, juice, flavored water, coffee, tea and milk and also due to consumer awareness of the health benefits associated with the plant consumption. The European market is expected to account for the fastest growth in the industrial hemp market for this given period. The growth can be attributed to the increased usage of hemp seed and hemp seed oil in food, beverages, dietary supplements, and personal care products. Furthermore, the use of hemp fiber (hemp hurds) in a variety of applications, including automotive and construction is also driving the growth in Europe. Hemp hurds are by products of hemp farming. They are about 0.5 mm long and make up 70%-80% of the hemp stalk. They accounts for approximately 70% of the usable fibers in industrial hemp. Hemp hurd has distinct properties such as thermal, mechanical, acoustic, aseptic properties and excellent organic fillers in a composite which makes them transformable into varieties of products.
They are also used in making of hempcrete, clothing textiles, bedding, absorbents, particle board, ceiling panels, and compost, among other things.
