Europe Industrial Hemp Market

Europe Industrial Hemp Market Size

The Europe industrial hemp market size was valued at USD 2.33 billion in 2023. The market size in Europe is further estimated to hike at a CAGR of 24.24% between 2024 and 2032 and be valued at USD 16.43 billion by 2032 from USD 2.89 billion in 2024.

MARKET DRIVERS

Growing Prevalence of Cancer In Europe

Government and non-government organizations are increasing their investments in developing new products using industrial hemp in various sectors and increasing the market's growth rate. Rising usage of the derived products of hemp oil in food and beverages, growing expenditure on personal care products, and increasing disposable income are also anticipated to promote the growth rate of the market. Additionally, rising investments in the development of novel drugs and the increasing scale of research and institutes across the region favor market growth. In many countries, industrial hemp is legalized by government authorities, which has propelled crop production since 2018. The launch of new products in the skincare sector, which favors end-users, is greatly influencing the demand for the industrial hemp market.

MARKET RESTRAINTS

Stringent Regulatory Framework

Strict rules and regulations governing government approval of new product launches quietly impede the growth of the European industrial hemp market. Also, people in rural areas are less aware of industrial hemp cultivation due to less knowledge of the benefits of hemp-based products, which is limiting the demand for the industrial hemp market in Europe. Complex regulatory systems are additionally declining the growth rate of the market. Besides, regular use of hemp products in healthcare causes some side effects, slowly hampering the regional market growth.

Impact Of COVID-19 On the Industrial Hemp Market In Europe

COVID-19 has shown disrupted results in every sector. Due to lockdown restrictions and a ban on international flights, there is a reduced supply chain in the first half of 2020. Some studies show that the medical use of hemp-based products has successful results in treating COVID-19. As cannabis has anti-inflammatory properties, it is very efficient in reducing stress and anxiety. So, these properties of industrial hemp in healthcare are propelling the market's growth rate. Also, it is observed that the hemp-based medicines are lowering the risk among the COVID-19 patients. COVID-19 is not over yet; the pandemic will continue for some years. There is an increasing number of research and development activities in healthcare using industrial hemp during these challenging times, and this is gearing up the share of the market.

REGIONAL ANALYSIS

In Europe, the demand for industrial hemp has been surging for the past few years. In 2023, Europe held 22.2% of the revenue share of the market. An increasing number of industries like textiles, automotive, fabrics, and others across the region mainly promote the market's growth rate. Legalizing industrial hemp in most countries due to its varied advantages in different fields is anticipated to fuel the market's growth rate. An increasing number of COVID-19 cases is also one factor for the growing demand for industrial hemp in the European region. Constant economic growth in developed countries is escalating the growth rate of the market.

The UK and Germany are two major countries that contribute the highest share of the market. Creating awareness and increasing demand for hemp-based products in healthcare and other areas creates growth opportunities for the market. Germany is projected to hit the highest CAGR over the forecast period.

KEY MARKET PLAYERS

Companies playing a dominating role in the European industrial hemp market include Hempco, Ecofibre, Hemp Inc., Gencanna, Hempflax BV, Konoplex Group, Hemp Oil Canada, BAFA, Hemp Poland, Dun Agro, Colorado Hemp Works, and Canah International.

MARKET SEGMENTATION

This research report on the Europe industrial hemp market is segmented and sub-segmented into the following categories.

By Type

• Hemp Seed
• Hemp Seed Oil
• CBD Hemp Oil
• Hemp Fiber

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)

By Country

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe