Hemp Fiber Market
Global Industry Analysis and Forecast 2023-2030
Market Value (2022)
USD 7.55 Billion
Forecasted Value (2030)
USD 73.55 Billion
CAGR (2023 - 2030)
Fastest Growing Region (2023 - 2030)
Textiles Paper, Manufacturing, Automotive, Construction, Biodegradable, Plastics, Others
The global Hemp Fiber Market was valued at USD 7.55 billion in 2022 and is projected to reach USD 73.55 billion by 2030, growing at a CAGR of 33.57% from 2023 to 2030.
The proliferating market growth is driven by the increasing use of hemp fiber in the clothing industry and pulp and paper industries. The hemp fiber market growth is growing at a rapid pace since hemp fiber is a sustainable alternative to many traditional materials and has therefore become an increasingly popular choice for various products and applications due to its high elasticity and durability. Despite the increasing interest in the utilization of hemp fiber for industrial and commercial purposes, significant obstacles persist concerning the acquisition of funding and navigating intricate legislative frameworks. Although the industry certainly has its challenges, the industry also has a lot of potential for growth and development. Current hemp fiber processing results in high labor costs, lack of quality control, and suboptimal yields, which increase the overall cost of hemp fiber thereby restricting the market growth. With an increasing number of ongoing research, it is anticipated that the utilization of it in various applications will witness significant growth in the forthcoming years.
Analyst’s Review on Hemp Fiber Market
The recent hemp fiber trend reflects a growing awareness and concern about the environmental and social impacts of manufacturing and production. As more consumers and businesses become aware of the benefits of sustainable and environmentally friendly products, the demand for hemp fiber and other renewable natural resources is likely to increase in the future.
The strong, durable fibers of hemp make it an ideal material for making clothes, ropes, and other textiles. In addition to textiles, hemp fiber can also be used in various industrial and commercial applications. Over the past few years, hemp fibers have been used to make clothes and building materials such as insulation, fiberboard, and even cement. Plant fibers can be used to create bio-composite materials that are useful in the manufacturing of a variety of automotive products, such as dashboards, door panels, and more. Hemp fiber is a shiny fiber, that has the characteristic knots and seams of linen, and the length of hemp fibers varies greatly depending on their end use.
The surging demand for hemp fiber can be attributed to the escalating preference for natural fibers as reinforcement in composite materials. This trend has garnered significant attention primarily due to ecological considerations, legislative mandates, and advancements in technology. Currently, hemp fibers have attracted global interest from designers in several industries including automotive, electrical, construction, and packaging. The hemp fiber market has gained immense potential owing to its accelerating properties such as ecological, biodegradable, and renewable natural resources. Hemp fibers have become an increasingly popular alternative to traditional textiles, with the emerging ecological trends around the world. by eliminating chemical and labor-intensive traditional production methods.
Considering the increasing demand for sustainable textiles, it is highly probable that the utilization of hemp fiber in the textile industry will experience notable growth in the forthcoming years. However, the application of hemp fiber still has problems related to a legal framework that prohibits its cultivation, processors, and producers. The limited availability of processing infrastructure accelerates the need for investment and development to streamline the supply chain process. Limited access to processing facilities makes it difficult for small businesses and farmers to grow and process for sale. To address these issues, investment in the development of supply chains and research into efficient processing methods for large-scale production, which ultimately accelerate the growth of the hemp fiber market. Compliance with relevant regulations, certifications, and standards is a crucial aspect that growers and processors of hemp must diligently address. However, this requirement poses a significant hurdle for market growth, as it imposes constraints on the market.
The global hemp fiber market is segmented based on source, application, and geography.
Based on the source, the market is divided into conventional and organic sources. The organic segment is the fastest-growing segment in 2022 and is expected to continue to do so over the forecast period. The primary factor driving the growth of the hemp fiber market is the growing preference for organic products among customers all over the world. Organic hemp fiber is poised to replace conventional hemp fibers owing to its accelerating application in engineering, automobile, aerospace, and construction due to their low cost, and relatively good mechanical properties, particularly tensile and flexural properties.
Based on the application, the market is segmented into textiles, paper manufacturing, automotive, construction, biodegradable plastics, and others. The textile segment is the fastest growing segment with a CAGR of 32.1% over the forecast period as they are hypoallergenic and do not irritate the skin. Hemp is resistant to ultraviolet radiation; therefore, does not degrade or fade in sunlight. Hemp fibers have important properties such as high absorbency and good thermal and electrical properties such as low static charge and high heat absorption which further confers to its advantages.
Based on regional analysis, the global hemp fiber market is categorized into North America, Europe, Asia Pacific, MEA, and Latin America.
Asia Pacific is the most dominating region with an expected market share of USD 41.67 billion with a forecasted CAGR of 37.65% over the estimated time period. The Asia-Pacific region has witnessed a significant expansion in the utilization of hemp fiber across a wide range of applications, including textiles, clothing, paper, and building materials. In recent years, there has been a growing interest in the use of hemp fiber in the Asia-Pacific region due to environmental concerns and the need for sustainable and environmentally friendly products.
In addition, hemp fiber stands out for its lightweight and breathable nature, surpassing many other materials in these aspects. Its distinctive texture has captivated consumer attention, further enhancing its appeal in various industries. Hemp concrete, a building material made from hemp fiber and lime, has become popular in recent years as a sustainable and eco-friendly alternative to traditional building materials such as concrete and brick. The growing interest in hemp fiber from consumers and producers is fueled by the establishment of more processing plants and robust supply chains, supporting its widespread use.
Europe is expected to grow at a CAGR of 32.40% owing to the accelerating use of hemp fiber for various purposes such as textiles, ropes, paper, and building materials. Hemp fiber is increasingly used as a sustainable alternative to cotton, which requires a lot of water, pesticides, and other chemicals to produce, making them a more practical choice for numerous applications in the region. The European Union actively promotes the use of sustainable materials, and hemp fibers are exceptionally well-suited to help achieve this objective, making them highly appealing to producers and consumers throughout the region.
The “Global Hemp Fiber Market” study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization. The major players in the market are
- Cone Denim LLC
- Delta Agriculture
- Dun Agro Hemp Group
- Ecofibre Ltd.
- EnviroTextiles LLC
- Konoplex LLC
- Panda Biotech, LLC
- Shanxi Greenland Textile Co. Ltd.
- Tiger Fiber
- TOYOSHIMA & Co., Ltd.
- In April 2023 (Collaboration): Panda Biotech collaborated with Southern Ute Growth Fund to promote sustainable hemp production in the United States. The collaboration aims to expand the production facilities to sustainable solutions for the future.
- In March 2023 (Investment): Toyoshima invested in hemp fiber producer FyberX through its venture capital fund Fashion and Technology No.2 Investment Enterprise Partnership. FyberX aims to deliver regenerative hemp fiber using a bioregional approach that benefits farmers, improves soil health, restores rural communities, and provides better opportunities for various industries, including the textile industry.
- In August 2022 (Expansion): Cone Denim expanded its partnership with hemp processing innovator Bast Core with the launch of the duo's American hemp collection. The purpose of the partnership is to support the company's efforts to bring new collaboration opportunities between like-minded people and offer customers sustainable denim products.
The Global Hemp Fiber Market is segmented as:
- Paper Manufacturing
- Biodegradable Plastics
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- North Africa
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America