Global hemp market forecast for the medium term

The global market for cannabis-free cannabis grows from $ 4.6 billion in 2019 to $ 26.6 billion by 2025, with an average annual growth rate (Compound Annnual Growth Rate, CAGR) of about 34%.

There are several dozen analytical companies specializing in the preparation of forecasting materials relating to various aspects of activity or trends in individual regions / countries of the world, as well as the situation in any areas of modern hemp breeding. HempConsalting, a national specialized information and analytical platform , shared certain trends provided to this structure during the implementation of one of the prognostic joint projects, the materials for which were prepared in the interests of a foreign customer. Refuse the provision of information-analytical platform HempConsulting data stated in the material.   

The global market for cannabis-free cannabis is expected to grow from $ 4.6 billion in 2019 to $ 26.6 billion by 2025, with an average annual growth rate (Compound Annnual Growth Rate, CAGR) of about 34%.

It is predicted that further regulatory support for the possibility of growing / processing / sales in all sectors of the global hemp economy will be the main driver of the growth of individual market sectors on various continents in the medium term. The main growth points will be the markets for using the plant for medical and recreational purposes, as well as the widespread use of the therapeutic properties of hemp raw materials in food products , cosmetics , biologically active / food additives .

During the forecast period, the segment of the cultivation and processing of hemp fiber dominates the market for technical hemp

Hemp fiber is used mainly in the textile and pulp and paper industry due to its physical and biological properties. Being a renewable source of raw materials, its application has recently expanded in many other related fields - construction, animal accessories , agriculture (agrofibre), furniture production, and automotive industry. It is expected that the use of hemp fiber for the production of biocomposite materials, as well as pulp and paper products will significantly increase the demand for this type of raw material in the medium term.

The organic segment of modern hemp breeding can grow at a faster rate during the forecast period than traditional cultivation

Organic hemp is grown in accordance with strict rules / instructions provided by the relevant certification authorities. Organically certified hemp guarantees consumers that it is produced in accordance with relevant standards and does not contain residues of substances hazardous to the human body (pesticides, fertilizers, etc.). Organic hemp is used mainly in food , beverages and pharmaceutical products . Most consumers prefer certified organic hemp seeds or the “green mass of the plant" because they believe that hemp grain / leaves and inflorescences with the corresponding documents have greater safety and quality. Growing confidence in organically grown hemp is predicted to significantly increase the demand for organic food , cosmetics, and hemp-based pharmaceuticals .

Asia Pacific holds the largest market share in 2018

In 2018, the Asia-Pacific region accounted for the largest market share. This dominance is associated with the widespread production and consumption of hemp fiber in the textile and pulp and paper industry. In addition, due to the rapidly growing market of cosmetics and personal hygiene products in the Asia-Pacific region and the legal and regulatory framework for the use of therapeutic properties of technical hemp in food additives , it is in this region that the hemp market will grow the largest in the medium term.