Asia-Pacific Industrial Hemp Market

Asia-Pacific Industrial Hemp Market Size (2024 to 2032)

The Asia Pacific industrial hemp market is estimated to be worth USD 2.14 billion in 2024 and is projected to reach a valuation of USD 14.92 billion by 2032. it is predicted to register a CAGR of 27.47% from 2024 to 2032.

MARKET SCENARIO

Increasing Utilization Of Hemp Products In The Medical Sector Is A Key Factor Propelling The Growth Rate Of The Market To The Extent.

Also, growing support from the government in this region is greatly influencing the demand of the market. It is a good replacement for plastics where hemp is non-toxic and bio-degradable. This attribute is quietly driving the demand of the market. The textile industries have varied hemp applications, which are solely to fuel the growth rate of the market. In many countries, hemp crop cultivation is legalized due to its major benefits in industries like pharmaceuticals, personal care, food, and beverages. Legalizing the cultivation is one factor for the growing demand of the industrial hemp market in the Asia Pacific. Rising occurrences of cancer, epilepsy, and other diseases where hemp usage has shown effective results are leveraging the growth rate of this market. Government initiatives to create awareness over the use of hemp in medicine are elevating the market's demand tremendously.

However, farmers have less knowledge of the benefits of hemp in industries and this is slowly hampering the growth rate of the market. In a few countries, the cultivation of hemp is not legal, which is impeding the demand of the industrial hemp market. Also, high complex regulatory structure by the government is limiting the demand of the market in the Asia Pacific. Fluctuations in the availability of raw materials due to production are to hinder the growth rate. Risk factors associated with the long-term use of hemp in the treatment of various diseases also to a decline in the regional market growth.

Impact of COVID-19 on the APAC industrial hemp market

COVID-19 has disrupted the shares of the key players. Due to the lockdown and other restrictions during the first half of 2020, there is a break in the supply chain and manufacturing of the products. This has slowed down the growth rate of the market. However, the use of hemp in the development of vaccines for COVID-19 has raised market demand. Some studies stated that cannabis oil has a positive effect on treating patients with coronavirus. This propelled the demand of the market to the extent of this pandemic. With the unlock guidelines across the region, all the activities are resumed, and the shares of the market are slowly falling into the previous state.

SEGMENTAL ANALYSIS

Asia-Pacific Industrial Hemp Market Analysis By Type

• Hemp seed
• Hemp seed oil
• CBD hemp oil
• Hemp fiber

Asia-Pacific Industrial Hemp Market Analysis By Application

• Food

  • Snacks & cereals
  • Soup, sauces, and seasonings
  • Bakery
  • Dairy & frozen desserts
  • Others (cold cereals, pasta, chocolate spreads, and pet food)
• Beverages
  • Hot beverages
  • Sports & energy drinks
  • Ready to drink
  • Others (meal replacement drinks, beverage mixes, beverage concentrates, and juice drinks)
• Personal care products
• Textiles
• Pharmaceuticals
• Others (paper, automobiles, construction & materials, furniture, and pet food)

GEOGRAPHICAL ANALYSIS

• India
• China
• Japan
• South Korea
• Australia
• New Zealand
• Thailand
• Malaysia
• Vietnam
• Philippines
• Indonesia
• Singapore
• Rest of APAC

The Asia Pacific market has been growing at a faster rate for the past few years and is estimated to hit the highest CAGR shortly.

The growing prevalence of skincare products and raising funds from private organizations are likely to fuel the growth rate of the market. The hemp seed oil adds taste to the vegan diet, which is ascribed to bolster the demand of the industrial hemp market.China held a market size of USD 1.7 billion in 2023 and 20% of total production. The government is allowing to sell the hemp-based products through eCommerce sites with necessary legal approvals. In India, the demand for the industrial hemp market is growing at a faster rate. Indian Narcotics Drugs and Psychotropic Substances (NDPS) Act of 1985 has issued powers for the state governments to give licenses to cultivate the hemp crop for medical purposes. Increasing awareness over the use of industrial hemp in different industries is surging the growth rate of the market in the Asia Pacific.

KEY MARKET PLAYERS

Companies playing a notable role in the Asia Pacific Industrial Hemp market are Hempco, Ecofibre, Hemp Inc., Gencanna, Hempflax BV, Konoplex Group, Hemp Oil Canada, BAFA, Hemp Poland, Dun Agro, Colorado Hemp Works, and Canah International.