Global Hemp Oil Market - 2023-2030

Global Hemp Oil Market - 2023-2030

Global Hemp Oil Market size reached US$ 9.8 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 27.2 billion by 2030. The market is growing at a CAGR of 17.1% during the forecast period 2023-2030.

The global hemp oil market is experiencing positive market trends supported by factors such as the growing consumer demand for natural and plant-based products, expanding legalization, increasing acceptance in medical and wellness applications, rising awareness in the beauty and personal care industry, and sustainable farming practices. Consumer preferences have shifted towards natural and plant-based products, driven by a desire for healthier alternatives and sustainability. As regulatory frameworks continue to evolve and scientific research advances, the global hemp oil market is expected to witness continued expansion, catering to the increasing consumer demand for health and wellness products derived from nature's resources. The respective drivers underscore the significant market potential and market opportunities in the hemp oil industry.

The CBD oil segment has emerged as the most rapidly growing sector within the types of hemp oil, capturing more than half of the market share. The accelerated growth of the segment can be attributed to the increasing consumer preference for natural and plant-based products, driven by a growing demand for healthier alternatives and a focus on sustainability. Additionally, the North American region stands as the largest market for hemp oil, covering over one-third of the market share. The significant growth and dominance of this region can primarily be attributed to the progressive legalization of hemp and CBD products, which has created a favorable market environment for the expansion of the hemp oil industry.

Market Dynamics
Growing Demand for Organic Cosmetics and Personal Care Products
Hemp oil is rich in essential fatty acids, including omega-3 and omega-6, which provide various skincare benefits. The fatty acids help to moisturize and nourish the skin, making hemp oil a popular ingredient in skincare products such as moisturizers, serums, and lotions. Additionally, hemp oil contains antioxidants that can help protect the skin from environmental damage and combat signs of aging. The National Center for Biotechnology Information (NCBI) reported a significant increase in consumer interest in hemp oil-infused skincare products based on online search trends post-2020.

One of the major drivers behind the growth of the global hemp oil market is the expanding consumer interest in natural and organic cosmetics and personal care products. Consumers are increasingly seeking products that are derived from sustainable sources and free from harmful chemicals. Hemp oil aligns with these consumer preferences as it is a natural and plant-based ingredient.

According to data from the U.S. Department of Agriculture (USDA), the sales of organic personal care products in U.S. reached US$ 7.8 billion in 2020, reflecting a steady upward trend. The increasing demand for natural and organic products contributes to the rising adoption of hemp oil in the cosmetics and personal care industry.

Rising Prevalence of Anxiety and Depression Disorders
Anxiety and depression disorders have become significant global health concerns, affecting millions of people across the globe. Factors such as work-related stress, lifestyle changes, and societal pressures contribute to the rise in these mental health conditions. According to the World Health Organization (WHO), more than 264 million people suffer from depression globally, while approximately 284 million experience anxiety disorders. The prevalence of these disorders has increased in recent years, creating a growing demand for effective and accessible treatment options.

Hemp oil, derived from the seeds of the cannabis plant, contains high levels of cannabidiol (CBD), a non-psychoactive compound known for its potential therapeutic benefits. The use of hemp oil as a natural remedy for managing anxiety and depression has gained traction as individuals seek alternatives to conventional treatments. As consumers are actively seeking natural remedies and alternative therapies to manage their mental health, leading to a growing demand for hemp oil and CBD-based products. Therefore, increasing prevalence of anxiety and depression disorders acted as a major driver boosting the hemp oil market.

Quality Control and Product Safety
Quality control and product safety concerns pose another restraint on the global hemp oil market. As the market experiences rapid growth, ensuring consistent quality and safety standards becomes crucial for maintaining consumer trust and confidence. However, due to the lack of standardized regulations and testing protocols, there can be variations in the quality and safety of hemp oil products available in the market. The above fact creates challenges for both consumers and businesses, as it can lead to issues such as product contamination, inaccurate labeling, and inconsistent product efficacy.

To address these concerns, governments have started implementing regulations and testing requirements for hemp-derived products. For instance, the U.S. Food and Drug Administration (FDA) has initiated efforts to regulate hemp-derived CBD products, including hemp oil. In Europe, the European Food Safety Authority (EFSA) has established guidelines for the safe use of hemp-derived products in the food and supplement industry. Such regulatory measures aim to ensure consumer safety but can also pose challenges for businesses in terms of compliance and additional costs.

COVID-19 Impact Analysis
The COVID-19 pandemic has had a significant impact on the global hemp oil market, presenting both challenges and opportunities. Disruptions in supply chains, shifts in consumer behavior, regulatory challenges, and uncertainties characterized the market landscape during the pandemic.

Governments across the globe implemented regulations and safety protocols to safeguard public health, which affected the movement of goods and caused delays in the supply chain. The United Nations Conference on Trade and Development (UNCTAD) reported that global trade volume of goods declined by 5.3% in 2020. Such disruptions posed challenges for hemp oil manufacturers and distributors, leading to supply shortages and delayed deliveries.

Nonetheless, the World Health Organization (WHO) reported that there was a surge in online searches related to natural remedies and health supplements during the pandemic. The respective shift in consumer behavior presented opportunities for the hemp oil market to cater to the growing demand for wellness products.

The increased focus on health and wellness, the surge in e-commerce, and the growing demand for sustainable products have created opportunities for the hemp oil market. As the world continues to navigate the effects of the pandemic, the hemp oil industry must adapt and innovate to meet changing consumer needs while navigating the evolving regulatory environment.

Segment Analysis
The global automotive oem coatings market is segmented based on product, type, source, distribution channel, application and region.

The Rising Consumer Awareness and Acceptance, Expanding Medical and Pharmaceutical Applications

The global hemp oil market has witnessed significant growth driven by the increasing demand for CBD oil. The rising consumer awareness and acceptance, expanding medical and pharmaceutical applications are key factors contributing to this growth. The growing awareness among consumers about the potential health benefits of CBD oil has played a significant role in its market growth. Consumers are seeking natural and alternative remedies for various health conditions, leading to increased demand for CBD oil as a wellness product.

Statistical data from government sources support these trends, indicating the promising future of CBD oil in the global hemp oil market. Government organizations, such as the World Health Organization (WHO), have also recognized the therapeutic potential of CBD, further boosting consumer confidence in its usage. In a survey conducted by the National Center for Complementary and Integrative Health (NCCIH) in U.S., it was found that 14% of Americans reported using CBD products in 2020, compared to 8% in 2019. As regulations continue to evolve and research progresses, CBD oil is expected to further establish itself as a prominent player in the wellness and healthcare industries.

Geographical Analysis
Increasing Consumer Awareness, Diverse Applications and Product Innovations

North America has witnessed a significant rise in consumer awareness regarding the potential health benefits of hemp oil. The growing trend of natural and organic products, coupled with increased interest in holistic health and wellness, has driven the demand for hemp oil in the region. Consumers are increasingly seeking natural alternatives for various health concerns, such as anxiety, pain management, and skincare. According to Health Canada, the demand for hemp-derived CBD products in Canada increased steadily from 2018 to 2020, with a significant rise in consumer interest and market penetration.

Additionally, the versatility of hemp oil and its wide range of applications have contributed to its growth in the North American market. Hemp oil is used in various industries, including food and beverages, pharmaceuticals, cosmetics, and personal care products. Manufacturers have been introducing innovative hemp oil-based products to cater to evolving consumer preferences. For instance, hemp oil is being used in food products as a nutritional supplement, in skincare products for its moisturizing and anti-inflammatory properties, and pharmaceuticals for its potential therapeutic benefits. The Canadian Hemp Trade Alliance reported an increase in hemp food product sales in Canada, showcasing the growing demand and market expansion.

Competitive Landscape
The major global players in the market include King CBD, Royal CBD, Kazmira, Cavendish Nutrition Fulfillment LLC, QC Infusion, Hemp Oil Canada Inc, Canazil, Folium Biosciences, Pharmahemp d.o.o. and Moon Mother Hemp Company.

Why Purchase the Report?
• To visualize the global hemp oil market segmentation based on product, type, source, distribution channel, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of hemp oil market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.
The global single-use packaging market report would provide approximately 77 tables, 78 figures and 196 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies