Rising Applications of Hemp Derivatives in Various Industries to Escalate Market Growth During 2022–2028
According to the latest market study on “Hemp Derivatives Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type (Hemp CBD Oil, Hemp Seed Oil, Hemp Fiber, and Others) and Application (Food and Beverages, Pharmaceutical and Nutraceuticals, Personal Care, Textiles, and Others),” the market was valued at US$ 5,953.86 million in 2021 and is projected to reach US$ 20,977.94 million by 2028; it is expected to grow at a CAGR of 19.7% from 2021 to 2028. The report highlights key driving factors and prominent market players along with their developments in the market.
Hemp or industrial hemp is a variety of cannabis sativa plant species, which are specifically grown for industrial use. Hemp derivatives, such as CBD, seed oil, and fibers, are derived from hemp and have various applications in several end-use industries, such as food and beverage, pharmaceuticals, personal care, and animal feed.
Hemp seeds and oilcake are used as an alternative source of food and feed protein in the food & beverages industry. Along with this, the oil obtained while crushing the hemp seeds is used in the manufacturing of soap, shampoo, lotion, cosmetics, and bath gels. The oil obtained from hemp seeds is rich in amino acids, minerals, and vitamins, and it is used in nutritional supplements as well as medicinal and therapeutic products. The fibers obtained from hemp contain a high amount of hemicellulose, along with high absorbent capacity, which makes it a suitable crop to be used in the textile industry. Stalks and fibers of hemp are used to manufacture clothes, paper, construction material, plastic, and composites, among others. Hemp fiber is also used in the manufacturing of insulation materials and bio-composites due to its high strength, biodegradability, thermodynamic, and lightweight properties. Hemp fibers are used in the construction industry for the manufacturing of construction materials such as fiberboard, stucco and mortar, cement block, coatings, acoustic materials, and pipe wraps. Composites, which are used in making petroleum-based products, are also made from hemp. The hemp seeds are rich in nutrients and protein and can be used as a substitute for soybean. Due to the protein content, hemp seed is used in the production of major products made from soybean, including tofu, butter, cheese, burgers, ice cream, and milk. Thus, increasing applications of hemp derivatives in various industries have led to an increase in demand for hemp derivatives, thereby driving the hemp derivatives market.
The ongoing COVID-19 pandemic has had a relatively positive impact on the hemp derivatives market. The pandemic helped to develop awareness and interest in the medical sector of hemp. The crisis has been a disagreeable and stressful time for most of the population across the world. Therefore, people worldwide have started consuming hemp derivative products to treat their anxiety and stress. Several significant users have increased their consumption. Consumption to be used for a sleep disorder and depression is conjointly hyperbolic. Due to an increased focus on health and wellness during the pandemic, there has been an increased search on Google about the health benefits provided by hemp derivatives, which is increasing the awareness about these derivatives. Along with this, a lot of countries have been hit with tax shortfalls amid the pandemic. The governments of countries are looking for sources of tax income. The potential source can be the legalization of hemp and its derivatives, which could become progressively engaging. An increase in the sale of hemp and its derivatives by legal sellers can provide a potential tax income gain.
Various research activities have also been carried out during the COVID-19 pandemic that focused on the use of hemp and its derivatives for the treatment of COVID-19. Researchers in Canada carried out a study to ensure whether Cannabis sativa extracts can help in reducing the levels of the host cell receptor that the SARS-CoV-2 virus clings on to gain entry and spread. Along with this, STERO Biotech, a company headquartered in Israel, provides insight into the use of cannabis and CBD as a potential treatment for COVID-19. Thus, various research activities on hemp and its derivates to find out their use in the COVID-19 treatment are having a positive impact on the hemp derivatives market.
Colorado Hemp Works, INC; Dun Agro Hemp Group; Ecofibre; HempFlax Group B.V.; HemPoland Sp. z o.o.; Konoplex; MH medical hemp GmbH; Plains Industrial Hemp Processing Ltd.; South Hemp; and BAFA Neu GmbH are among well-established players in the global hemp derivatives market. Companies in the market are adopting strategies such as product developments, plant expansions, and mergers and acquisitions to expand their footprint worldwide and meet the growing demand from end users. For instance, in 2020, Ecofibre entered into an Asset Sale Agreement to acquire the businesses and assets of TexInnovate, which is a portfolio of 5 businesses that work as an integrated manufacturing platform and will drive innovation and delivery for a wide range of high-performance textile products envisaged for Hemp Black.
Geographic Overview of Hemp Derivatives Market
Hemp Derivatives Market to Grow at a CAGR of 19.7% to reach US$ 20,977.94 Million from 2020 to 2028
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Hemp Derivatives Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Hemp CBD Oil, Seed Oil, Hemp Fiber, and Others) and Application (Food and Beverages, Pharmaceutical and Nutraceutical, Personal Care, Textiles, and Others) and Geography
Hemp Derivatives Market to Grow at a CAGR of 19.7% to reach US$ 20,977.94 Million from 2020 to 2028
Download Free SampleHemp Derivatives Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Hemp CBD Oil, Seed Oil, Hemp Fiber, and Others) and Application (Food and Beverages, Pharmaceutical and Nutraceutical, Personal Care, Textiles, and Others) and Geography
The report segments the global hemp derivatives market as follows:
Based on type, the hemp derivatives market is segmented into hemp CBD oil, hemp seed oil, hemp fiber, and others. The market, based on application, is segmented into food and beverages, pharmaceutical and nutraceuticals, personal care, textiles, and others. By geography, the hemp derivatives market is segmented into five main regions North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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