Hemp Seeds Market Size, Share & COVID-19 Impact Analysis, By Form (Whole Hemp Seed, Hulled Hemp Seed, Hemp Seed Oil, and Hemp Protein Powder), Application (Food & Beverage, Personal Care Products, Industrial Products, and Others), and Regional Forecast, 2020-2032

The global hemp seeds market size was valued at USD 710.7 million in 2019 and is projected to reach USD 3002.94 million by 2032, exhibiting a CAGR of 11.87% during the forecast period based on our analysis in the existing report.

Hemp seeds are rich in protein, minerals, and fiber and hence, they are considered one of the most nutritious natural foods. They provide exceptional ingredients for human health as they contain high levels of vitamins A, C, and E. According to a 2014 study by the University of Seville, Spain, hemp seed has an ideal ratio of omega-6 to omega-3 fatty acids along with some compounds that help to control high blood pressure. Thus, due to its rich nutritional profile and health benefits, the use of these seeds will be increasing, especially in food & beverage and nutritional supplements.

Growing consumer awareness regarding health benefits is a key factor driving the growth of the market. Furthermore, different forms of these seeds, such as hulled hemp seed, seed oil and protein powder, are increasingly preferred in different industries such as food & beverage, personal care products, nutritional supplements, animal feed, and industrial products. The increasing application from these industries is driving the growth of the hemp seeds market.

Rising Prevalence of Coronavirus to Pose a Serious Threat on the Market

The occurrence of COVID-19 has impacted many businesses across the world due to its various socio-economic effects. With no exception, the novel coronavirus has also posed a negative impact on this industry. The heavy reliance on hardware will have major effects on the market, as this hardware is manufactured exclusively in China. The shortfall in the availability of hardware will thus hamper the production of hemp-based products, and the disruption in production would further impact the supply of these products. Along with the disruption in the supply chain, the COVID-19 pandemic is hitting vertically integrated companies.

Since there is an ever-growing range of sustainable products using hemp, there is a chance that some parts of this plant can be used as raw material in many industries, such as textiles and plastic. Thus, there is a chance that the spread of COVID-19 will have a slight impact on this industry.

HEMP SEEDS MARKET TRENDS

Increasing Investment by Key Market Players in Product Development to Boost Market

Market players operating in this market are making continuous efforts to innovate and launch new products in the market to establish their prominence. Companies are innovating by launching new products such as protein powder, beverages, milk products, oil, and nutritional supplements. This is further increasing the popularity and demand for these products across countries where hemp production and consumption are legalized.

DRIVING FACTORS

Rising Demand from Personal Hygiene Industries to Bolster Growth

Hemp belongs to the same family as that of Cannabis; however, it is a multipurpose plant, the seeds of which are used as a source of healthy food. They are superior to chia and flax seeds as they contain both GLA (gamma-linolenic acid) and CLA (conjugated linoleic acid). Additionally, it consists of a balanced ratio of fatty acids and 10 essential amino acids and is a great source of dietary fibre. The major vitamins present in hemp seeds are phosphorus, potassium, sodium, magnesium, sulfur, calcium, iron, and zinc. Moreover, hemp is considered allergy-free when compared to other plant protein sources. It can be eaten raw or can be used to produce a variety of food products such as milk, oil, cheese substitutes, and hep-based protein powder.

From the medicinal point of view, both the seed and oil help to lower cholesterol as well as fight blood clots formed as a result of high cholesterol. Furthermore, clinical trials have shown that fatty acids in hemp oil help to treat dry skin and are beneficial for the treatment of conditions such as eczema and psoriasis. Due to these beneficial effects, hemp oil is considered a good ingredient for use in skin care products.

RESTRAINING FACTORS

Strict Regulatory Framework May Pose Restrictions on Market Growth

As hemp belongs to the Cannabaceae family, which is the same as that of Cannabis, it is necessary to regulate these products, according to the FDA and the European Food Safety Authority. Hemp-based products take a long time for approval, and as per many food regulating agencies across the world, the Tetrahydrocannabinol (THC) content present in these products should not exceed 0.3% level. Thus, the ever-changing legal and regulatory scenario for hemp and its usage acts as a major restraint for the growth of the market.

SEGMENTATION

By Form Analysis

“Demand for Whole Hemp Seed to Remain High Owing to its Stable Nature”

At the global level, the whole hemp segment is predicted to lead the market and continue doing so during the forecast years due to its stable nature (in terms of denaturation and oxidative stability) in the air compared to hulled seed. Also, whole hemp is an excellent source of minerals and comprises rare insoluble fibre. The hull can also be used to cleanse the colon and flush toxins from the intestine gently.

By Application Analysis

“Food and Beverage Segment to Earn the Largest Share Owing to its Nutritional Profile”

At the global level, they are largely used in the food & beverage industry due to their rich nutritional profile. In 2019, this segment earned a 44.52% share. Hemp seeds are eaten in raw form or added to various food products such as smoothies and breakfast toppings. Additionally, the seed oil has application in a majority of food items such as salads, margarine, milk, and granola bars. They are also used for beer brewing and baking flour.

REGIONAL INSIGHTS

“Europe Market to Rise at the Fastest Pace Owing High Demand from Processed Food Sector”

The Europe market will register the fastest compound annual growth rate (CAGR)of 12.01% during 2020-2027. This is attributed to the growing consumption of these seeds as food and their use along with other food products such as smoothies, yoghurt, and cereal bars, especially in countries such as the Netherlands,  Italy, Germany, and the U.K.

At present, Asia Pacific holds the largest hemp seed market share, accounting for 33.6% of the global market, and this is attributed to its high consumption in countries such as China, Japan, Australia, and India. Moreover, the growing market for personal care products in the region and the legalization of industrial hemp in food supplements is also driving the regional market growth.

The growth of the North American market is driven by the growing consumption and production of hemp seeds in the U.S. and Canada, respectively. Also, the 2018 U.S. farm bill has further cleared the path for hemp-based products by legalizing the use of hulled seeds, seed protein powder, and seed oil in the U.S. food supply.

KEY INDUSTRY PLAYERS

“Rising Innovation in the Global Market to Intensify Competition”

Market players are constantly innovating by developing new products to optimum share in the market. For instance, Hello Products LLC, a Colgate Palmolive brand, launched hemp-based oil products such as toothpaste, mouthwash, and dental floss. Also, certain big companies in the market are acquiring small key players to maintain a significant position in the market competition.

LIST OF KEY COMPANIES PROFILED IN HEMP SEEDS MARKET:

• Manitoba Harvest (Winnipeg, Canada)


• Hemp Oil Canada Inc. (Manitoba, Canada)


• Canah International (Salonta, Romania)


• Hempflax BV (Oude Pekela, Netherlands)


• BAFA neu GmbH (Malsch, Germany)


• Liaoning Qiaopai Biotech Co., Ltd. (Jinzhou, China)


• North American Hemp & Grain Co. (Vancouer, Canada)


• Yunnan HuaFang Industrial Hemp Co. Ltd. (Kunming, China)


• GFR Ingredients Inc. (Alberta, Canada)


• Naturally Splendid Enterprises Ltd.  (Pitt Meadows, Canada)

KEY INDUSTRY DEVELOPMENTS:

• In August 2019, Panxchange, a physical commodities OTC market structure solutions provider, launched its first institutional-grade industrial hemp exchange. This will help the producers, trade houses, processors and end-users to participate in a transparent and efficient market for commercial products.


• In February 2019, Canada-based Tilray Inc. signed a deal to acquire Manitoba Harvest. This acquisition will accelerate the Nanaimo, B.C.-based pot grower's entry into the U.S. market as the hemp food manufacturer's products are already on the shelves of retailers such as Walmart, Costco and Whole Foods.

REPORT COVERAGE 

The market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible market segmentations. Along with this, the global hemp seeds market report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and the global industry trends.

Report Scope & Segmentation