Hemp Derivatives Market to Grow at a CAGR of 19.7% to reach US$ 20,977.94 Million from 2020 to 2028

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

Publication Month : Aug 2021

  • Report Code : TIPRE00007654
  • Category : Food and Beverages
  • Status : Published
  • No. of Pages : 163
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The hemp derivatives 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.

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.

In 2021, Asia Pacific accounted for the largest share in the global hemp derivatives market. Rising awareness related to the medical benefits of hemp derivates increases their utilization in the region. Along with this, hemp derivatives find several applications in the textile industry. Furthermore, the booming market of cosmetics and personal care products in Asia Pacific and the legalization of industrial hemp in food supplements are estimated to drive the market in the region during the forecast period.

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.

Global Hemp Derivatives Market, by Region 2021

Global Hemp Derivative Market, by Region 2021
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Market Insights

Rising Applications of Hemp Derivatives in Various Industries

Hemp is being increasingly used for various applications in different industries. 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.

Type Insights

Based on type, the hemp derivatives market is segmented into hemp CBD oil, seed oil, hemp fiber, and others. The hemp fiber segment held the largest share in the market in 2021. Hemp is a bast fiber plant like Jute, Kenaf, and Flax. These fibers are now being used as reinforcements in composite materials due to their biodegradability and lower density than artificial fibers. The hemp fiber conducts heat, resists mildew, dyes well, blocks ultraviolet light, and has natural antibacterial properties.

Hemp Derivatives Market, by Type – 2021 and 2028

Hemp Derivative Market, by Type – 2021 and 2028

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Hemp Derivatives Market: Strategic Insights

hemp-derivatives-market
Market Size Value inUS$ 5,953.86 Million in 2021
Market Size Value byUS$ 20,977.94 Million by 2028
Growth rateCAGR of 19.7% from 2021-2028
Forecast Period2021-2028
Base Year2021
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A few of the key market players operating in the hemp derivatives market are Colorado Hemp Works, Inc; Dun Agro Hemp Group; Ecofiber; 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. Major market players are adopting strategies such as mergers and acquisitions, and product launches to expand their geographic presence and consumer base.  

Report Spotlights

  • Progressive trends in the hemp derivative industry to help players develop effective long-term strategies
  • Business growth strategies adopted by companies to secure growth in developed and developing markets
  • Quantitative analysis of the global hemp derivatives market from 2019 to 2028
  • Estimation of the demand for hemp derivatives across various industries
  • Porter analysis to illustrate the efficacy of buyers and suppliers operating in the industry to predict market growth
  • Recent developments to understand the competitive market scenario and the demand for hemp derivatives  
  • Market trends and outlook coupled with factors driving and restraining the growth of the hemp derivatives market
  • Understanding regarding the strategies that underpin commercial interest with regard to global hemp derivatives market growth, aiding in the decision-making process
  • Hemp Derivative market size at various nodes of market
  • Detailed overview and segmentation of the global hemp derivatives market as well as its industry dynamics
  • Hemp derivative market size in various regions with promising growth opportunities

Hemp Derivatives Market, by Type

  • Hemp CBD Oil
  • Seed Oil
  • Hemp Fiber
  • Others

Hemp Derivatives Market, by Application

  • Food and Beverages
  • Pharmaceutical and Nutraceutical
  • Personal Care
  • Textiles
  • Others

Company Profiles

  • Colorado Hemp Works, Inc
  • Dun Agro Hemp Group
  • Ecofiber
  • Hempflax Group B.V.
  • Hempoland Sp. Z O.O.
  • Konoplex
  • Mh Medical Hemp Gmbh
  • Plains Industrial Hemp Processing Ltd
  • South Hemp
  • BAFA Neu GmbH
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type and Application and Geography

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


Can you list some of the major players operating in the global hemp derivative market?

The major players operating in the hemp derivative market are Colorado Hemp Works, Inc, Dun Agro Hemp Group, Ecofiber, 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.

Which region held the largest share of the global hemp derivative market?

In 2021, Asia Pacific held the largest revenue share of the global hemp derivatives market. The increase in awareness about the medical benefits of hemp derivates has led to an increase in the utilization of hemp derivatives in Asia Pacific. Along with this, hemp derivatives find several applications in the textile industry. This dominance can be attributed to the extensive production and consumption of hemp fibers in the textile and paper industry. Furthermore, the booming market for cosmetics and personal care products in the Asia Pacific region and legalization of industrial hemp in food supplements is estimated to drive the hemp derivatives market in the region. In recent years, there has been an increase in consciousness regarding personal appearance among individuals in Asia Pacific, which has led to an increase in demand for cosmetic products, resulting in the growth of the cosmetic market in the region. The desire for a presentable personal image among Asian consumers has led to an increased awareness of personal hygiene habits.

Based on type, why is the hemp CBD oil segment expected to grow at the highest rate during 2022–2028?

Cannabidiol (CBD) is non-psychoactive and has various properties which led to an increased application CBD hemp oil across various industries. CBD hemp oil has various nutrients and minerals which are used for treating topical skin problems such as acne. Acne is a highly prevalent skin problem for which treatment options are in high demand. Moreover, CBD hemp oil is available in a variety of forms to make consumption easier, including edible options. CBD hemp oil is used for promoting health as it helps in body functioning with the changing environment. Thus, various application of hemp CBD oil in different industries has led to a growing demand of hemp derivative in this segment.

Based on type, which segment is leading the global hemp derivatives market during the forecast period?

Among the four segments of type, hemp fiber segment has led the hemp derivatives market in 2021. Hemp is a bast fiber plant which is similar Jute, Kenaf, Flax among others. Hemp fiber is considered as one of the strong members of bast natural fibers family and is derived from the hemp plant under the species of Cannabis. These fibers are now being used as reinforcements in composite materials which is due to their biodegradability and low density compared with artificial fibers. The hemp fiber has various properties such as it conducts heat, resists mildew, dyes well, blocks ultraviolet light and has natural anti-bacterial properties.

Based on application, which segment is the fastest growing segment in the global hemp derivatives market?

Personal care segment is the fastest growing segment in the global hemp derivatives market during the forecasted period. Hemp derivatives has various applications in the personal care and cosmetic industry which includes usage in the manufacturing of soaps, cream, oil, lip balm, shampoos among others. Derivative such as hemp seed are rich in alpha-linolenic acid (omega-3) and linoleic acid (omega-6) along with hemp oil’s high and balanced fatty acids content which makes them an ideal ingredient for beauty care products. The hemp oil is used in cosmetic as they can penetrate through layers of the skin to promote cell growth. The hemp seeds are also used to repair and moisturize the dry and damaged skin along with supporting the health of hairs and nails. Hemp oil is an effective moisturizer which can provide the skin with a barrier for pollutants and can smooth the muscle aches.

Which region held the fastest CAGR in the global hemp derivatives market?

Europe is estimated to register the fastest CAGR in the market over the forecast period. The increase in the demand for personal care and cosmetic products in Europe has led to the growth of the cosmetic industry. According to Cosmetic Europe, the Personal Care Association, the European personal care and cosmetic market is the largest in the world. According to Eurostat, the cosmetic and personal care industry in Europe is estimated to be at least US$ 34.2 billion in added value to the European economy annually.

The List of Companies - Hemp Derivatives Market

  1. Colorado Hemp Works, INC
  2. Dun Agro Hemp Group
  3. Ecofibre
  4. HempFlax Group B.V.
  5. HemPoland Sp. z o.o.
  6. Konoplex
  7. MH medical hemp GmbH
  8. Plains Industrial Hemp Processing Ltd.
  9. South Hemp
  10. BAFA Neu GmbH

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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