Hemp fiber is a durable natural fiber that can be blended or used on its own as textiles. It is praised for its breathability, temperature regulation and moisture wicking properties. Hemp fiber is also biodegradable and sustainable as hemp is a fast growing plant that enriches the soil. The global hemp fiber market is estimated to be valued at US$ 5.76 Bn in 2023 and is expected to exhibit a CAGR of 9.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
One major opportunity driving the demand in the hemp fiber market is its applications in the automotive industry. Hemp fibers can be used as lightweight composite materials to form interior automotive parts as they are strong, durable and provide acoustical and thermal insulation. Incorporating hemp composites helps automakers reduce vehicle weight and achieve fuel efficiency targets without compromising on durability or strength. The lighter weight of hemp fibers also improves acceleration and overall performance of electric vehicles. With growing regulatory pressure on emissions and fuel consumption, automakers are actively exploring natural fiber reinforced biocomposites like hemp to develop more sustainable vehicles. This rising adoption of hemp composites by automakers is expected to significantly boost the growth of hemp fiber market over the forecast period.
Porter's Analysis
Threat of new entrants: The hemp fiber market is consolidated with stringent regulations surrounding hemp cultivation which poses high entry barriers for new players.
Bargaining power of buyers: Buyers have moderate to high bargaining power in the hemp fiber market due to availability of substitutes and undifferentiated products.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute raw materials and less differentiation in products.
Threat of new substitutes: Substitute products like linen and jute pose threat to hemp fiber market.
Competitive rivalry: The global hemp fiber market witnesses high competitive rivalry due to presence of established players.
SWOT Analysis
Strengths: Growing industrial applications of hemp fiber due to its eco-friendly and durability properties.
Weaknesses: Regulatory hurdles and high production costs associated with hemp cultivation. Lack of advanced processing technologies.
Opportunities: Rising demand for sustainable and organic textiles offers lucrative growth opportunities. Growing legalization of hemp cultivation in various nations.
Threats: Availability of cheaper substitute products. Fluctuating raw material prices affect supply chains.
Key Takeaways
The Global Hemp Fiber Market Size is expected to witness high growth.
Regional Analysis: The market in North America is projected to dominate the global market owing to growing legalization of hemp cultivation and processing in the US and Canada. Western Europe is also projected to be a fast-growing market for hemp fiber attributed to rising adoption of hemp-infused textiles and composite materials.
Key players operating in the hemp fiber market are Agrovet, Indian Immunologicals Ltd., MSD Animal Health, Vallee SA, Bayer HealthCare, Brilliant Bio Pharma Ltd., Intervet, Biovet, Merial, China Animal Husbandry Co., Ltd., Biogénesis-BagÃ3 S.A, Vetal Animal Health Products S.A.VETAL Animal Health Products, and Vecol S.A. Rising investments by these players to enhance processing technologies and develop innovative applications will strengthen their foothold in the market over the forecast period.
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