Based on a new research report by Fact.MR, worldwide sales of industrial hemp are estimated to reach $25.7 billion by 2034, expanding at a CAGR of 14.5% from 2024 to 2034.
Demand for industrial hemp is skyrocketing as more and more industries recognize its versatile and sustainable properties. Once overlooked, this remarkable crop is now being embraced for its myriad uses across various sectors. From textiles and construction materials to biofuels and nutritional supplements, hemp’s applications are seemingly endless.
Environmentally conscious consumers are driving much of this demand, according to the report, as hemp requires minimal pesticides and herbicides, making it an eco-friendly choice for sustainable farming. Its ability to sequester carbon dioxide and remediate contaminated soil further adds to its appeal. Moreover, hemp’s durability, lightweight nature and renewable qualities make it an attractive alternative to traditional materials in manufacturing.
As awareness of hemp’s benefits continues to spread, industries are investing in research and development to unlock its full potential.
Increasing Awareness of Hemp’s Therapeutic Potential
Once relegated to the fringes, industrial hemp is rapidly emerging as a sustainable wonder crop, according to the report, fueling a wave of cutting-edge innovations across diverse industries. As researchers and entrepreneurs unlock its vast potential, hemp is proving to be a versatile and eco-friendly resource, paving the way for exciting new products and applications.
The automotive industry is also exploring the use of hemp fibers as a reinforcement material for lighter, stronger and more sustainable car parts. These natural fiber composites could reduce vehicle weight, according to the report, improving fuel efficiency and reducing emissions.
In the field of biotechnology, scientists are harnessing the unique properties of hemp to develop innovative products, according to the report. For instance, researchers are exploring the use of hemp-derived compounds, such as cannabidiol (CBD), for their potential therapeutic applications in various medical conditions.
Hemp’s Competitive Landscape
Hemp suppliers are integral to the industrial hemp supply chain. To succeed and make a lasting impact, industry leaders should focus on building reliable supply networks, optimizing cost management, exploring vertical integration, ensuring high product quality and staying ahead of market trends, according to the report.
Green Thumb Industries Inc. acquired Leafline Industries in December 2021, gaining authorization to cultivate, process, and distribute cannabis to patients—expanding its market presence in Minnesota.
In March 2021, Curaleaf Holdings Inc. acquired Emmac Life Sciences, a European marijuana company, for $286 million. This acquisition broadened Curaleaf’s footprint across eight countries, including Portugal, Spain, Germany, Italy and the United Kingdom.
In May 2020, HempFlax BV, based in the Netherlands, acquired Thermo-Natur, a German manufacturer of natural fiber insulation, marking its entry into the building supply sector.
