A new report has attributed the growing hemp market in Europe as a driving factor of global growth.
A once under-utilised crop, hemp is now seeing strong growth thanks to the demand for alternative products. Food, drink and personal care products are driving the growth of the industrial hemp market.
A new report from Global Market Insights has highlighted government regulations and policies associated with the legalisation of cultivation, as well as escalating demand for hemp products as a main driver of the market.
The market size was over USD$205m (~£151.09m) in 2020 and is projected in the report to reach $310m by the end of 2027.
Fibre and seeds
Hemp is utilised extensively in the pulp and paper industry as it is a considerably more sustainable crop than wood. This is due due to the fact its does not need bleaching produces more pulp per acre, offers enhanced paper strength, and utilises chemicals that are less toxic compared to wood paper.
The report highlights that government regulations seeking to limit wood harvesting and the associated harmful consequences of wood pulp and paper production, are likely to foster product uptake.
Read more: Italy plans hemp production increases: could the UK be next?
It speculates the segment will see robust growth to attain a valuation of more than $70.5m by 2027.
The hemp seeds segment is slated to surpass a valuation of around $74.5m by 2027 under food and beverages application, due to their wide use in supplements, such as protein powder and meal replacement bars and snacks.
Europe
The report has attributed a proliferating industrial hemp market in Europe as well as mounting product application in automotive manufacturing as additional drivers of growth in the global market.
It notes that the Europe industrial hemp market is projected to progress at a CAGR of approximately 5.5 per cent over the forecast period to surpass a valuation of $80.5m.
Growing consumer awareness of the plant’s therapeutic effects has also boosted product demand in recent years, according to the report.
To read the full report please visit: https://www.gminsights.com/roc/3306.
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