Hemp Oil Market

Global Hemp Oil Market Size (2024 to 2032)

The Global hemp oil market is expected to grow from USD 157.55 million in 2024 to USD 2,096.44 million in 2032, with a CAGR of 38.2% between 2024 and 2032. 

The medicinal benefits derived from hemp oil are predicted to accelerate the call for hemp oil products. A change in the use of hemp oil has been observed around the world due to the growing awareness of its benefits and effects, which is leading to an increased call in the international marketplace. Hemp oil is mainly obtained by pressing hemp seeds, which are widely employed in the production of various personal care products due to the presence of essential fatty acids, nutrients, and antioxidants in the oil. Also, hemp oil is employed in various applications such as pharmaceutical and nutraceuticals, industrial uses, food, and beverage, etc. Different types of hemp oil, such as CBD oil, hemp essential oil, and hemp seed oil, are widely known around the world and are readily available in the market. The extracted oil is employed primarily in skin care products, although industrial hemp oil is employed in the production of paints, lubricants, fuels, and plastics. The presence of nutrients, essential fatty acids, and antioxidants is perfect for the skin making it ideal for massage and healing treatments.

Current Scenario of the Global Hemp Oil Market

The global hemp oil market is likely to experience significant expansion over the next five years due to a greater geographic presence and competition between market players.

The rising demand for hemp oil from food and beverage and industrial applications and rising applications of hemp oil in the personal care products industry in North America and Europe are foreseen to fuel the growth of the hemp oil market over the forecast period. Over the years, worldwide manufacturers have focused on continuous research and development to develop new and innovative products. Companies such as Gaia Botanicals, Isodiol, and Medical Marijuana, among others, are focusing on new product innovations and hemp oil product launches. Additionally, several companies have also launched anti-aging products and gum based on hemp oil, which are creating opportunities in the worldwide hemp oil market during the foreseen period. A total of 111 new products were launched between 2008 and 2017 around the world, which contained hemp seed oil as an active ingredient.

MARKET DRIVERS

The growing adoption of hemp oil in personal care products and the food and beverage industries worldwide is a key driver of the expansion of the global hemp oil market.

The rising awareness of the various health benefits associated with this oil, such as relief from anxiety, sleep disorders, chronic pain, and others, leads to a growing call for hemp oil in the world market. The escalating adoption of hemp oil in many nutraceutical and pharmaceutical applications and the growing awareness of hemp seed oil that helps prevent various diseases such as diabetes, inflammation, cancer, and others are predicted to drive expansion in the worldwide market. In addition, the rising penetration of hemp oil in the e-commerce platform and the increasing adoption of hemp oil in the production of fuel, lubricants, paints, and other industrial uses are other factors that will likely drive the expansion of the target market during the outlook period. Hemp oil relieves chronic pain, sleep disturbances, anxiety, and nerve pain, among others. The health benefits of hemp have led to an increase in the call for hemp oil in recent years. In addition, the expansion of the online distribution channel is also an important factor that is accelerating the expansion of the global hemp oil market.

The world market for hemp oil has undergone several changes in recent years and is foreseen to change significantly in the near future due to changes in production sources, changes in consumer preferences adjustments to market parameters. Hemp oil is highly employed in the food and beverage industry and in personal care products around the world. In addition, the high investments in research and development and the escalating number of aggressive marketing strategies by the major manufacturers of hemp oil are other important factors that are estimated to prolong the expansion of the target market in the coming years.

MARKET RESTRAINTS

Stringent rules and regulations by the government over legal approvals for the use of hemp oil in a few countries are a primary factor limiting the growth rate of the hemp oil market. Some companies sell products that are not legally approved by the government authorities. These products derived from hemp oil need to be certified by higher authorities as they can cause various adverse effects if they are not manufactured by following proper guidelines. Therefore, the easy availability of hemp oil and its products in local brands is a great challenge for key market players. 

The major complication comes with the presence of cannabidiol and tetrahydrocannabinol in hemp oil, which are strictly prohibited in many countries. Therefore, the difficulty in getting approvals from the government in these countries is slightly to degrade the growth rate of the hemp oil market. Pharmaceutical companies are seeking to receive approvals from FDA (Food and Drug Administration) to use hemp oil in various drug production which is degrading the size of the hemp oil market during the forecast period 2024 to 2032. 

MARKET OPPORTUNITIES

The increased utilization of hemp oil in the pharmaceutical industry is providing the hemp seed oil market with growth opportunities.

The growing legalization of hemp products in most countries due to their safe use in children, newborns, and pregnant women is boosting the market growth opportunities. With the rising prevalence of depression among the world population and the surge in mental health issues, the advantageous treatment in the reduction of the inflammation causing heart diseases and cancer is expected to increase the market growth in the coming years. The escalation in the demand for natural and organic products among people owing to their potential health benefits is enhancing the market opportunities for innovation in various end-user industries. The emerging economies and the expanding international trade are creating growth opportunities for expanding market revenue worldwide.

MARKET CHALLENGES

The stringent regulations for the approval of hemp-based products and hemp oil due to various ethical and environmental concerns and challenges restrain the market expansion. The manufacturers face various challenges due to inadequate cultivation methods and extraction processes, which raise concerns regarding product quality and standards. The presence of various side effects associated with cannabidiol hemp oil, such as liver problems, infections, rashes, breathing problems, and others, limit the adoption rate among people, leading to restricted market growth. The intense competition from the competitive markets and the availability of alternative and adulterated products lead to price fluctuations, which impede market growth opportunities.   

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Hemp Oil Market Analysis By Type

The CBD hemp oil segment held the most significant share of the hemp oil market owing to its increased benefits.

The segment is estimated to have the highest CAGR during the forecast period as it is widely used in the pharmaceutical for the treatment of various types of epilepsy in adults and children. The CBD oil will also help with depression, anxiety, pain, and sleep, which fuels the segment revenue expansion. CBD hemp oil has massive benefits in the cosmetics industry, which boosts growth opportunities in the market. The whole hemp seed segment is gaining traction due to the huge demand for hemp seeds, which maintain a stable nature because of high oxidative stability. The whole hemp seeds are considered a high source of nutrition due to their insoluble fiber, and the hull will remove the toxins from the bowel and cleanse the colon, which augments the segment growth.  

Global Hemp Oil Market Analysis By Application

The personal care products segment dominated the global hemp oil market with a significant share and is estimated to maintain the domination during the forecast period.

The growing demand for natural and organic cosmetic products and the rising R&D investments to develop efficient products are driving growth in the personal care products segment. The hemp seed oil is widely used in cosmetics as it provides soothing effects and helps treat eczema and acne. The hemp seed oil consists of omega-6 fatty acids, which possess inflammatory properties, and this helps in repairing sun damage by reducing UV damage and hyperpigmentation, which augments the segment growth rate.

The food industry segment is expected to grow fastest during the forecast period. The hemp oil is low in saturated fat and rich in polyunsaturated fat, providing low smoke and propelling the segment's growth. Hemp oil is primarily a food and dietary supplement, boosting the segment's growth opportunities.  

REGIONAL ANALYSIS

The North American region dominated the global market with a prominent share and is projected to witness massive growth with significant CAGR during the forecast period.

The increased demand for organic products due to rising awareness among people regarding the health benefits is driving the growth of the hemp oil market. The increased applications of hemp oil in various industries, such as food and beverages, personal care, and pharmaceuticals, contribute to regional market expansion. The legalization of hemp products across the region is enhancing the regional market revenue. The high prevalence of mental health issues across the region is demanding effective treatment options such as cannabidiol hemp oil, which has wide applications in the treatment of epilepsy. The comprehensive benefits of hemp oil in mental illness treatment are augmenting the regional market growth.

The Asia Pacific region is estimated to have a rapid growth rate during the forecast period due to increasing awareness among the people and enlarging the food and beverage industry.

Regional countries such as India and China are the largest shareholders of the hemp oil market due to increasing demand for organic products in various industries, which is augmenting the market growth. The rising disposable incomes of the people are enhancing their investments in healthy and natural products, which boosts the regional market revenue.

The European region is expected to have moderate growth in the coming years due to the increasing demand for healthy and natural products due to the increased vegan population across the region.

The increased awareness regarding the nutritional benefits of hemp is enhancing its consumption as a dietary supplement, which propels the market growth rate across the region.

KEY PLAYERS IN THE GLOBAL HEMP OIL MARKET

Companies playing a prominent role in the global hemp oil market include Isodiol International Inc., HempLife Today, Hemp Oil Canada Inc., Medical Marijuana, Inc., Folium Biosciences, CV Sciences, Inc., Pharmahemp d.o.o, Gaia Botanicals, LLC., Canazil, Kazmira, Spring Creek Labs, and Others.

RECENT HAPPENINGS IN THE MARKET

• In February 2023, an Australian Hemp food company, Hemp Foods Australia, announced its plans to expand its production facility to meet the growing demand for hemp seed oil and hemp products.
• In January 2023, Charlotte's Web Holdings announced the launch of new hemp seed oil products under the brand CW for the wellness market. These product launches are expected to enhance the company portfolio.
• In April 2022, the European Hemp Company Hemp Seed Oil introduced a new line of organic hemp seed oils for the cosmetics and personal care industry.
• In June 2022, Pure Hemp Botanicals, a Colorado-based hemp company, launched hemp seed oil-based pet products under the Pet Pure brand.  

DETAILED SEGMENTATION OF THE HEMP OIL MARKET INCLUDED IN THIS REPORT

This research report on the global hemp oil market has been segmented and sub-segmented based on type, application, and region.

By Type

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

By Application

• Food
• Beverages
• Personal Care Products
• Textiles
• Pharmaceuticals

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa