Updated figures suggest that, despite the Covid-19 crisis, the global market for industrial hemp – estimated at US$5.3 billion in 2020 – is still projected to reach a revised US$13.8 billion by 2027.
According to Industrial Hemp – Global Market Trajectory & Analytics, the seeds segment is projected to record a 15.3% Compound Annual Growth Rate (CAGR) and reach US$8.9 billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the fibre segment is readjusted to a revised 13.5% CAGR for the next 7-year period.
The US market is estimated at $1.4 billion, while China is forecast to grow at 19% CAGR.
The industrial hemp market in the US is estimated at US$1.4 billion in the year 2020. China, the world’s second largest economy, is forecast to reach a projected market size of US$3.2 billion by the year 2027 with a CAGR of 19.1% over the analysis period 2020 to 2027.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 10.4% and 12.8% respectively over the period. In Europe, Germany is forecast to grow at approximately 11.5% CAGR.
In the global Shives segment, the US, Canada, Japan, China and Europe will drive the 12% CAGR estimated for this segment. These regional markets, which accounted for a combined market size of US$195.7 million in 2020, will reach a projected size of US$431.5 million by the close of the analysis period.
China will remain among the fastest growing in this cluster of regional markets.
Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$2.1 billion by the year 2027, while Latin America will expand at a 14.3% CAGR through the analysis period.