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Global Hemp Market Projected To Exceed $15 Billion Annually By 2028

A.J. Herrington

By A.J. Herrington

January 19, 2023

global CBD market projections shown by CBD oil in brown bottle with dropper and cannabis branch, hemp on podium Beige background Concept of cosmetics and products with cannabinoid, CBD oil, tincture Modern still life, minimalism in light shades with shadows Copy space

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The global

for industrial hemp products is expected to grow to more than $15 billion per year over the next five years, according to a recently released . The report, which was released on Wednesday by ReportLinker, projects that the hemp market will grow to approximately $15.1 billion annually by 2028, up from an estimated $6.8 billion in 2022. Overall, the worldwide hemp market is expected to expand at a compound annual growth rate (CAGR) of 21.22% from 2022 to 2028.

The market analysis notes that hemp can be used in a variety of health and wellness, industrial,

and other applications. Hemp can be grown and processed for fiber, seed or cannabinoids that can be used to manufacture an increasing variety of products including health foods, organic , clothing, pharmaceuticals, construction materials, biofuels, plastic composites and more.

“The increasing demand by the pharmaceutical and textile industry and rising consumer awareness about product benefits significantly drive the primary factors,” the authors of the report wrote. “Besides this, the growing consumption of hemp-based products on health benefits and the escalating incidences of epilepsy and other sleep disorders is anticipated, and the long-term profitability of industrial hemp is a real hindrance for potential growers.”

The analysis categorizes

products into four major categories including seeds, stalks, fibers and other products. Hemp seeds, which can be eaten or processed into an oil suitable for foods, cosmetics and other , are expected to capture the most significant segment of the global market over the next five years. The report cites the high demand for hemp seed in the food and beverage industries as the primary force driving the growth of the category, with the grain industry driving the development of hemp agriculture in North America.

The report notes that the demand for hemp fiber is growing around the world as the resource is increasingly used in products such as paper, carpeting, home furnishings, construction materials, auto parts and composites. Market analysts expect textiles to also be a significant segment of the global industrial hemp market through the forecast period.

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Hemp Grown In More Than 40 Countries

Hemp is becoming an increasingly popular crop around the world, with more than 40 nations now growing the crop for industrial and commercial purposes, the market report notes. China has long been the global leader in hemp production, primarily for fiber production. The report notes that France is a leading producer in Europe, followed by the Netherlands and Austria.

The crop is also increasingly popular in other countries including the United Kingdom and Eastern European nations such as Poland. North America, Canada and the United States are also becoming global leaders in hemp production focus on international markets, with the legalization of hemp agriculture in the United States in 2018 fueling increased interest in the crop among American farmers. 

The new market analysis report also notes that

agriculture is gaining further acceptance due to the sustainability of the crop, a factor being considered more and more by consumers and businesses alike as developing strategies to mitigate global climate change continues to gain interest.

“Hemp is a fast-growing plant with the ability to sequester an average of zero-point-six-seven tons of carbon dioxide per hectare every year from the atmosphere,” the report notes. “This sustainably means that it turned into consistent, durable material, and hemp can store carbon for its lifetime, thus reducing carbon in the atmosphere. Therefore, it could impact global carbon reduction goals negatively if used to substitute more carbon-intensive materials and products.”

The new report, “Industrial Hemp Market, Global Forecast 2023-2028, Industry Trends, Growth, Impact of Inflation, Opportunity Company Analysis,” is

from ReportLinker.

A.J. Herrington

About The Author

A.J. Herrington

HIGH THERE MISSION

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