hemp plants

Canada’s Hemp Industry Continues To Shrink

As Canada’s legal adult-use cannabis industry has increased in size and scope in recent years, the same cannot be said about the nation’s hemp industry. According to Canadian government data, the number of industrial hemp licenses issued has trended downward in recent years. Below is the number of licenses issued by year:

  • 2018: 542 licenses
  • 2019: 866 licenses
  • 2020: 1,269 licenses
  • 2021: 1050 licenses
  • 2022: 992 licenses
  • 2023: 737 licenses

“Licensed hemp fields in Canada continued to shrink, with 11,861 hectares (29,309 acres) recorded in 2023, down from 13,589 hectares (33,579 acres) in 2022, according to government statistics.” Hemp Today stated in its original reporting.

“The 2023 results show industrial hemp at its lowest level since Health Canada, the government’s cannabis regulator, started tracking the crop in 2018. Canadian fields are one-fourth of what they were at a peak of 44,600 hectares (110,209 acres) achieved in 2017.” Hemp Today also reported.

According to market analysts at Spherical Insights LLP, the global industrial hemp market is projected to be worth an estimated $24.30 billion by 2033. Spherical Insights describes itself as “a market research and consulting firm which provides actionable market research study, quantitative forecasting and trends analysis provides forward-looking insight especially designed for decision makers and aids ROI.”

“The Global Industrial Hemp Market Size is to Grow from USD 5.38 Billion in 2023 to USD 24.30 Billion by 2033, at a Compound Annual Growth Rate (CAGR) of 16.27% during the projected period.” the researchers stated in a press release.

The global market for hemp-based products is projected to reach $16.2 billion by 2033, growing at a CAGR of 24.5% between 2023 and 2033, according to a separate market analysis by Fact.MR. The researchers estimated that the market was worth $1.8 billion in 2023.

“Europe and North America collectively account for around 70% of the global market share at present and are expected to maintain a similar outlook over the coming years as well.” Fact.MR stated about its market report.

The global hemp clothing market is projected to experience significant growth in the coming years, reaching an estimated $23.02 billion by 2031, according to a separate market analysis by Allied Analytics LLP.

“The global Hemp Clothing Market Size was valued at $2.29 billion in 2021, and is projected to reach $23.02 billion by 2031, growing at a CAGR of 27.1% from 2022 to 2031.” the researchers stated in a press release.

“The hemp clothing market holds a significant scope for growth during the forecast period. Currently, the market is moving toward maturity stage and is expected to garner steady growth in major markets, which include the U.S., China, and India.” the researchers also stated.

Projections for the hemp fiber sector vary widely. Industry researchers at Research and Markets estimate that the global hemp fiber market will be worth $378.56 million dollars in 2024, and that it will increase in value to a projected $561.8 million by 2029.

“The global hemp fiber market is experiencing remarkable growth driven by increasing awareness of its environmental benefits and versatile applications. Derived from the sturdy stalks of the Cannabis sativa plant, hemp fibers have emerged as a sustainable alternative to traditional materials like cotton and synthetic fibers.” the researchers stated in a press release.

A separate market analysis conducted by Kings Research projected a far more optimistic estimate for the global hemp fiber market, finding that “the global Hemp Fiber Market revenue was recorded at USD 7.55 billion in 2022 and is anticipated to grow to USD 73.55 billion by 2030, exhibiting a 33.57% CAGR over the forecast period.”

Kings Research determined that the Asia Pacific region leads the global hemp fiber market, “and is foreseen to witness strong growth at 37.65% CAGR over the analysis period.”

Technavio recently published an estimate for the overall global industrial hemp industry. Technavio is a global technology research and advisory company that “focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.”

“The global industrial hemp market size is estimated to grow by USD 6.87 bn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of over 17.1% during the forecast period.” Technavio stated in a press release.