HEMP FIBER MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Hemp Fiber Market Size and Trends

The Hemp Fiber Market size is expected to reach US$ 23.57 Billion by 2030, from US$ 5.76 Billion in 2023, at a CAGR of 22.3% during the forecast period. Hemp fiber is extracted from the stalk of the hemp plant and has gained popularity as a sustainable and durable natural fiber. Hemp fiber is used in textiles, pulp & paper, composite materials, insulation, animal bedding, and other applications owing to its strength, durability, absorbency, and antimicrobial properties. The market is driven by legalization of hemp cultivation, rising demand from textile industry, increasing construction activities, and surging demand for hemp oil.

The hemp fiber market is segmented by source, product type, application, end-use industry, and region. By product type, the market is segmented into fibers, shivs, seeds, stalks, and others. The fibers segment accounted for the largest share of the Hemp Fiber Market in 2022. Hemp fibers are increasingly being used in textiles and apparels owing to characteristics such as natural elasticity, high absorbency, antimicrobial properties, and sustainability.

Hemp Fiber Market Trends:

• Shift Towards Organic Hemp Fiber: Organic hemp fiber production is a major trend driven by growing consumer demand for organic and natural products. Consumers are increasingly seeking products made from organically grown hemp fiber sourced through environmentally sustainable practices. This has compelled producers and brands to certify their hemp cultivation and manufacturing processes. Companies are partnering with organic farmers and leveraging Blockchain to add transparency to their supply chain. The trend reflects rising eco-consciousness among consumers and industries. For Instances, According to data from the United States Department of Agriculture's Economic Research Service, certified organic cropland for hemp production in the U.S. grew from 3,100 acres in 2019 to 15,400 acres in 2022. States like Colorado, Oregon, and Montana have witnessed major growth in their organic hemp acreage.
• Online Retailing Driving Distribution & Sales: The emergence of online retail channels is a key trend shaping distribution and sales in the hemp fiber market. Consumers are increasingly purchasing products like hemp apparel, food, personal care, and supplements through online platforms. To leverage this, manufacturers are partnering with leading e-commerce firms like Amazon and Ebay to enhance their digital presence and sales. Online channels provide wider reach to manufacturers, especially smaller players. Digital marketing, promotions, and consumer engagement on social media platforms further drive online sales. For instance, as reported by the US Environmental Protection Agency, the sale of hemp-based paints and sealants grew by nearly 30% from 2020 to 2022 through major e-retailers. This is indicative of the positive impact online avenues are having on the commercialization and market expansion of different hemp products.
• New Product Development: The hemp fiber market is witnessing high emphasis on research, product innovation and new product development. Companies are investing in R&D to utilize hemp fibers and seeds to develop innovative products and expand use cases. For instance, hemp fiber use in new categories like hemp sunglasses, luggage, and furniture is rising. Hemp seeds are being used to develop plant-based meats, milk, yogurt, and cheese. Cosmetics incorporating hemp oil/extracts are also being launched. Such efforts to diversify product portfolio cater to shifting consumer preferences for sustainable goods.
• Mergers and Acquisitions: The hemp fiber market has witnessed increasing mergers and acquisitions activity in recent years. Large companies are acquiring smaller players to expand production capacities, geographical presence, and product portfolio. Recent M&A deals include Canopy Growth’s acquisition of Supreme Cannabis, Gale Pacific’s acquisition of Canadian hemp processor The Willamette Valley Company. Such consolidation activities allow companies to gain competitive advantage and bolster market position. Acquiring niche technology/expertise is also an incentive for strategic acquisitions. For example, in 2022 Smurfit Kappa, one of the largest paper manufacturers in the world, acquired France Papier, a major hemp pulp producer in Europe. This gives Smurfit Kappa a major supply of hemp pulp for its paper production.