US Hemp Derivatives Market Growth and Analysis by 2027

The US hemp derivatives market was valued at US$ 1,403.5 Mn in 2018, and it is expected to grow at a CAGR of 23.7% during the forecast period 2019 – 2027 to reach US$ 7,056.4 Mn by 2027.

Hemp is regarded as a versatile plant that possesses various applications across numerous end-use industries. Hemp derivatives such as hemp-derived CBD, hemp fibers, hemp seed oil finds its application in food and beverage applications, textiles, nutritional supplements, fuels, plastic replacement, and others industrial bases. The demand for hemp has increased substantially among various sectors such as manufacturing, energy, pharmaceutical, medical, health care, and automotive industries.

Market Insights

Growing demand for hemp derivatives from several end use industries

Hemp is grown as a renewable form of raw materials that are used in the manufacture of several products. As the seeds and flowers of hemp plant are rich in nutrients, amino acids, and others, they are widely used in the manufacture of health promoting foods, body and skin care, products. Moreover, stalks and fibers of hemp are used in the production of clothes, paper, construction materials, plastic composites, and among others. The paper manufactured from hemp is considered superior to the tree-based paper as they offer longer life span and can be recycled several times. Apart from its use in production of paper, hemp is also used to manufacture fiberboard, which is quite stronger yet lighter in comparison to wood. Therefore, researchers are looking forward to substitute fiberboard made up of timber with the one from hemp, which would further promote sustainability. Hemp is also used in the production of durable, robust, and eco-friendly alternatives of plastic. Composites made from hemp are used to form petroleum-based plastics products. As the hemp seeds comprises a good amount of protein and nutrients, it acts as a substitute for soybean. Considering this fact, the hemp seed protein is used in the production of major products made from soybean, which includes tofu, butter, and cheese, burgers, ice cream, milk, and among others.

Application Insights

The US hemp derivatives market by application has been segmented into food & beverages, pharmaceuticals, personal care and others. In 2018, In 2018, the pharmaceuticals accounted for a larger share of the US hemp derivatives market. Hemp derivatives have long been valued across the world owing to its medicinal properties. It is a unique plant that is a rich source of omega 3, omega 6, and amino acids. It contains several vitamins such as A, B, B1, B2, B3, B6, C, E, and F along with minerals such as potassium, calcium, sulfur, magnesium, phosphorus, zinc, etc. Hemp comprises minimal THC, and large amounts of CBD, and primary restorative cannabinoid, which is extremely valuable as it offers various medical benefits. Hemp is promoted as a treatment for a range of conditions including epileptic seizures, post-traumatic stress disorder, anxiety and depression, diabetes prevention, alleviation of cancer symptoms, and inflammation. With such therapeutic and medicinal properties, hemp and its derivatives have gained significance and are being increasingly demanded across pharmaceutical applications and the production of nutritional supplements.

US Hemp Derivatives Market, by Application - 2018 & 2027

Type Insights

Based on the type, the US hemp derivatives market has been segmented into hemp-derived CBD, hemp fibers, hemp seed oil, and others. In 2018, others hemp derivatives segment which includes hemp flour and hempseed cake, cell fluid etc. is expected to grow at fastest growth rate during the forecast period.

The other hemp derivative includes hemp flour and hempseed cake, cell fluid, and extracts. Hemp flour is used in food & beverages industry. Hemp is a good source of fiber, vitamins, and minerals including magnesium, vitamin E, zinc, and iron. Hemp-based food products have gained immense popularity due to their easy digestibility on account of being free from gluten, allergens, genetically modified organisms (GMO), lactose, phytoestrogen, and pesticides. Consumption of hemp-based food products aids the maintenance of a healthy digestive system, which further drives the overall US hemp derivatives market. Hemp-based beverages are witnessing robust popularity due to their superior functional benefits, portion-controlled dosses, and easy availability. Thus, the growing demand for food and beverage items in the country is expected to boost the demand for hemp.

Hempseed cake is used in protein powder and animal feed; hemp extracts are used to produce oils, isolates, and distillates. Hemp cell fluid is used to produce number of chemicals that are processed further to produce chemical intermediates. Escalating demand for hemp derivatives from the above mentioned industries is driving the growth of the market for other hemp derivative in the US.

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US Hemp Derivatives Market: Strategic Insights

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Canada Hemp Foods Ltd, Colorado Hemp Works, LLC, Hempco Food and Fiber Inc., Z-Company BV, Bell Flavors & Fragrances Inc., Neptune Wellness Solutions, Inc., Radient Technologies, Aurora Cannabis Inc., Re Botanicals, Inc., Aphria Inc. are are amongst the key market players operating in the US hemp derivatives market. These companies are engaged in providing a comprehensive product portfolio of hemp derivatives. These market players are highly focused on providing high-quality hemp derivatives products which have high nutritional profile and strong application base in several application bases. The companies have realized the immense potential pertaining to hemp derivatives products and were highly involved in new development, merger and acquisition and among other strategies. For instance, in 2018, Bell Flavors & Fragrances EMEA introduced a line of botanical flavors and extracts sourced from hemp

US Hemp Derivatives Market - By Type

• Hemp-Derived CBD
• Hemp Seed Oil
• Hemp Fiber
• Others

US Hemp Derivatives Market - By Application

• Food and Beverages
• Pharmaceuticals
• Personal Care
• Others

Company Profiles

• Canada Hemp Foods Ltd
• Colorado Hemp Works, LLC
• Hempco Food and Fiber Inc.
• Z-Company BV
• Bell Flavors & Fragrances Inc.
• Neptune Wellness Solutions, Inc.
• Radient Technologies
• Aurora Cannabis Inc.
• Re Botanicals, Inc.
• Aphria Inc.

US Hemp Derivatives Market Report Scope

US Hemp Derivatives Market Players Density: Understanding Its Impact on Business Dynamics

The US Hemp Derivatives Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.