Latin America Industrial Hemp Market

Latin America Industrial Hemp Market Size (2024 to 2032)

The size of the Latin America industrial hemp market was valued at USD 0.60 billion in 2023. This market is expected to grow at a CAGR of 25.62% from 2024 to 2032 and be worth USD 4.71 billion by 2032 from USD 0.76 billion in 2024. 

MARKET SCENARIO

Hemp has various uses in the food industry, which is a major factor propelling the growth rate of the market. Government initiatives in creating awareness over the benefits of hemp-based products in various industries are slight to level up the growth rate of the market. On-going research and development activities to introduce user-friendly personal care products is escalating the demand of the market. Also, increasing disposable income and rising expenditure on healthcare is prompting the growth rate of the market. Growing older people and increasing incidences of cancer diseases are likely to fuel the industrial hemp market's demand to the extent. Hemp has a major role in medical purposes like epilepsy and sleep disorders, which is solely to leverage the growth rate of the market. Besides, hemp seeds are very rich in proteins where it also adds value to the began diet is ascribed to bolster the demand of the market. Many researchers institutions are in a race to find out new industrial hemp-based products in favor of the end-users is enhancing the growth rate of this market in Latin America. An increasing number of people with epilepsy and sleep disorders is also a factor impelling the market's demand.

However, the government's stringent rules and regulations in approving the innovative products are hampering the demand of the market. Rising side effects with the long term use of the medicines manufactured with hemp products are slowly impeding the growth rate of the industrial hemp market. Also, the lack of certain knowledge in cultivating the industrial hemp crop in rural areas hinders the market’s demand. The high cost of raw materials due to fluctuations of raw materials is also restraining the growth rate of the industrial hemp market in Latin America.

SEGMENTAL ANALYSIS

Latin America Industrial Hemp Market Analysis By Type

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

Latin America 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

• Brazil
• Mexico
• Argentina
• Chile
• Rest of Latin America

Geographically, Latin America is holding with the highest shares of the market. Despite the COVID 19 pandemic, the shares are hiking. Increasing the demand for the cultivation of cannabis by knowing its vast advantages in medical purposes is likely to promote the market's demand. Also, the government is investing more in the cultivation of industrial hemp along with cannabis. This is lucratively propelling the demand of the market. Increasing awareness among people is also one of the factors leveling up the growth rate of the market.

Argentina is positioned top in leading the market's growth rate due to the growing interest in the cultivation of the hemp crop for medical and scientific purposes. In Argentina, it is legal to grow cannabis at home and also can be used medicinally. This is the key attribute for the industrial hemp to grow in this country.

Brazil is next to Argentina in ruling the dominant shares of the market. Growing support from the pharmaceutical companies is escalating the demand of the market. For instance, Uruguayan company Pharmin is taking the initiative to launch brand products of marijuana as it is estimated that 2 million people are using cannabis for different medical treatments.

COVID-19 impact on the Latin American industrial hemp market

The spread of the deadly disease COVID-19 across the world has disrupted many lives in various forms. Every sector has seen a downfall during the pandemic period. The industrial hemp market in Latin America has a slow growth rate during these tough times due to lockdown restrictions and a ban on international flights. However, from the last months of 2020, the market shares surge tremendously with the business partnerships and new legislations of cultivating hemp in this region. Though the pandemic affected the region’s economy, the market shares are going forward in multiple ways.

KEY MARKET PLAYERS

Noteworthy companies dominating the Latin American Industrial Hemp market are Hempco, Ecofibre, Hemp Inc., Gencanna, Hempflax BV, Konoplex Group, Hemp Oil Canada, BAFA, Hemp Poland, Dun Agro, Colorado Hemp Works, Canah International, and Others.