The Global Hemp Oil Market is expected to grow at a CAGR of 34% during the forecasting period (2022-2029).
Hemp oil is the oil extracted from the flower, seeds, stems, and leaves of the cannabis Sativa plant hemp. Cold pressing hemp seeds obtain hemp oil into omega-rich culinary oil. Hemp Oil is used for body massage to relieve pain, maintain body weight, metabolism reduce blood pressure, treat skin disease, and reduce inflammation & pain.
Hemp seed oil is majorly produced from varieties of cannabis, including Sativa, which does not contain significant tetrahydrocannabinol (THC). It contains gamma-linolenic acid, omega-6, omega-3 fatty acids, nutritional antioxidants, vitamins B and D, and occasionally from Indica.
Hemp oil has over 80 chemicals in the cannabis Sativa plant, while delta-9-tetrahydrocannabinol (THC) is the major active ingredient. Hemp oil can be found in "cosmetics and personal care" products only if it contains less than 0.3% THC. Also, hemp seed oil has several benefits, such as it helps relieve constipation, providing cardiovascular health benefits, modifying the immune system, and improving skin conditions.
Global hemp oils are driven by rising demand for several medical applications such as stress relief. They are used to manufacture cosmetics and personal care products in the pharmaceutical industry and reduce body pain. Increasing spending on the research and development in the pharmaceutical sector for the new medicines based on hemp oil due to growing awareness about its benefits has propelled this market's growth as hemp oil helps relieve several chronic ailments such as sleep disorders, nerve pain, chronic pain, anxiety and among others. Additionally, the surge in demand through online e-commerce distribution websites is also a major driving factor for the growth of the hemp oil market.
Rising prevalence of anxiety and depression disorder due to a surge in the global geriatric population and increasing stressful lifestyle
Increasing legalization regarding the use of hemp oil in several countries due to its astounding health benefits has propelled the hemp oil market. For instance, in the United States, a farm bill was passed for industrial hemp's legal production in 2018, which opened doors for increasing market growth due to the legalization of the cannabis compound cannabidiol (CBD).
The market is also driven by the rising prevalence of anxiety and depression disorder with a surge in the global geriatric population; according to the Our World in Data report in 2017, around 792 million people suffering from mental health disorders such as depression, stress, and anxiety, more than one in ten people (10.7%) globally. It created a massive demand for hemp oil to alleviate stress symptoms and provide relief to patients.
Growing demand in the manufacturing of cosmetics and personal care products in the pharmaceutical industry
Increase in the adoption of hemp oil for manufacturing cosmetics and personal care products, and several leading players are launching hemp oil for relieving muscle and joint pain. For instance, in October 2020, Synerva launched New CBD oil Joint and Muscle Cream for relieving the pain. It created a massive demand for medicines made from Hemp Oil to provide relief from muscle pain for the geriatric population.
It was further increasing demand for personal care and cosmetics products due to a surge in consumer awareness and rising disposable income, and growing demand by the working women. For instance, as per the personal care organization in 2018, the personal care and cosmetics market reached US$ 488 billion, and consumer spending on personal care products reached US$ 64 on average globally. It created a massive demand for hemp oil around the globe.
Increasing FDA approval for the medicines based on hemp oil for providing treatment for various diseases coupled with increasing partnerships, merger and acquisition activities for developing hemp oil-based products and drugs
Rising food and drugs administration (FDA) approvals with growing permission to cultivate CBD for medicinal use by several governments may create a huge opportunity for the CBD market. Also, rising partnerships, mergers, and acquisition activities among the leading manufacturers of hemp-based products may make a huge opportunity for market growth.
For instance, on 17th June 2020, Perrigo has made a partnership with Kazmira LLC for entering into the CBD market by implementing a two-phased, science-based approach. The partnership focused on large-scale production and supply of cGMP compliant, THC-free CBD, and hemp oil production. Perrigo utilizes Kazmira's THC-free hemp-based CBD supply to launch products globally, with an agreement to supply in the United State's store brand market. Thus it may create a huge opportunity for Perrigo's consumer self-care products growth through this strategy.
Strengthening of rules and regulations with several FDA and government approvals regarding the sale of the hemp oil-based products
The global hemp oil market is hampered by the strict rules and regulations with F.D.A. authority to sell CBD-based products. Several leading companies have received a warning letter for Hemp Oil-based products. For instance, in April 2020, the United States F.D.A. has warned Homero Corp D.B.A. Natures for the distribution of Hemp Oildue to violations include unapproved new drugs sold as per FD&C Act (Federal Food, Drug and Cosmetic Act), 21 U.S.C. 355(a), and 331(d). Furthermore, CBD-containing products for humans are misbranded drugs under section 502(f)(1) of the FD&C Act, 21 U.S.C. 352(f)(1) by that Homero Corp D.B.A. Natures company.
COVID-19 Impact Analysis
The global hemp oil market has shown slight declination during the Covid-19 pandemic due to several leading manufacturing plants being closed owing to lockdown in many countries. Pharmaceutical and biotechnology companies focused on researching and developing Hemp Oil-based products to treat the most common anxiety and depression disorder effectively.
For instance, on 21st Feb 2020, Clever Leaves has launched its direct-to-business sales platform for pharmaceutical-grade cannabis extract products such as CBD isolate oil, THC-free full-spectrum hemp oil, and full-spectrum extracts oils for customers throughout Europe, Australia, and South America. During the covid-19 pandemic, several hemp oil manufacturers have focused on research and development and launched new products for personal and healthcare, and cosmetics.
Also, several leading manufacturers have shifted into online platforms by launching new websites for facilitating home services. For instance, on 1st May 2020, Royal CBD launched a website and launched a new line of premium CBD and hemp oil-based premium-quality products. Thus, the rising launching of new products coupled with a surge in demand for clinical research is expected to create massive opportunities for the manufacturers over the forecast period.
The global hemp oil market is segmented based on the product, type, source, application, distribution channel, and region.
Growing demand for cosmetics & personal care products to boost the hemp essential oil segment for the global hemp oil market in 2019
The global hemp oil market is bifurcated into essential hemp oil, CBD oil, and hemp seed oil. Among this hemp, the CBD oil segment had the highest market share in 2019, primarily due to its demand for the naturally-occurring phytocannabinoids for making flavoured cosmetics and personal care products.
Several leading players are launching hemp oil-based products for providing high-quality skincare, cosmetics, and personal care products such as lotions, hand creams, etc. For instance, in Jan 2020, Avon launched CBD-infused facial oil named green goddess facial oil. Flavoured oil contains vitamins E, A, D, and essential fatty acids that help relieve irritation and reduce the appearance of redness and skin discomfort.
Similarly, CBD oil and hemp seed oil segments are also growing faster due to the rising demand for hemp oil due to a surge in awareness among people about its health benefits. As these CBD oil and hemp seed oil are significantly used for the treatment of muscle spasticity, glaucoma, low appetite, and insomnia
The increasing prevalence of the diseases mentioned above has propelled the hemp oil market among the geriatric population. For instance, as per WHO (World Health Organization), the prevalence of insomnia is between 10% to 30% among the global population, with the highest rate between 50%–60% in older adults, females, and people due to mental ill-health. It created a massive demand for this segmental growth for the treatment of insomnia patients around the globe.
In terms of the type, the global hemp oil is segmented into blended and original. This blended segment had the highest market share in 2019; this is primarily due to rising demand in the food and beverages industry with growing investment by the leading players worldwide.
Depending upon the source, the global hemp oil is segmented into organic and inorganic. The organic segment had the highest market share in 2019; this is primarily due to increasing demand by the people globally with growing awareness about organic products across the globe.
Retail pharmacies are expected to dominate the global hemp oil market during the forecast period.
The global hemp oil is segmented into pharma retail stores, online pharmaceutical stores, hospital pharma retail, and others based on the distribution channel. The pharma retail store had the highest market share in 2019 due to increasing retail outlets in several countries. For instance, in India, on 14th June 2019, Medlife has planned to open 750 retail pharmacy stores by 2020.
Similarly, online pharmaceutical stores and hospital pharma retail segments are also growing faster due to the rising demand for online pharmaceutical drug delivery platforms due to the Covid-19 pandemic worldwide. For instance, on 20th August 2020, Reliance launched e-pharmacy by completing the acquisition of a needs pharma distribution company for around US$ 84 million.
Rising research and development for the development of the pharmaceutical products for the personal care and cosmetic industry
Depending on the application, the global hemp oil market is segmented into pharma and nutraceuticals, personal care & cosmetics, industrial, food, and beverages. Among these, the personal care and cosmetics segment has the highest market share in 2019 due to rising research & development spending for developing and launching CBD oil-based drugs and medicines. For instance, on 6th July 2020, United States consumers had spent around US$3 billion on hemp products in 2020. Pharma and nutraceutical segment is segmented into capsules, pills, and others.
Personal care and cosmetics are segmented into lotions, hand creams, leap balms, soaps, shower gels, hair care products, etc. Industrial is segmented into paints and coatings, paper and packaging, solvents and lubricants, printing inks, construction materials, automotive, textile, etc. The packaging and packaging segment has the highest market share due to the growing demand for the food and beverages industries.
The food and Beverages segment is classified as food products and beverages. The beverages segment has the highest market share due to increasing beverage consumption across the globe. Food products are segmented into cooking oils, bakery products, cakes, doughnuts, frozen products, desserts, salads, snacks, soups, sauces, seasonings, and many others.
Further beverages segment is segmented into alcoholic and non-alcoholic. The non-alcoholic segment is segmented into Energy Drinks, soft drinks, RTD Coffee, RTD coffee, infused water, flavoured drinks, and others.
North America region is dominating the global hemp oil market accounted for the largest market share in 2019 due to the leading pharmaceutical companies' presence and rising approval for the CBD-based products with high demand for stress and anxiety relief using hemp oil in this region, followed by Europe.
For instance, according to the National Institute of Mental Health, in 2017, an estimated around 47 million North America has a mental illness, of which 11 million were living with a serious mental illness such as depression disorder and anxiety. According to the Hemp Industries Association (HIA) report in 2016, retail sales of CBD-based products in the United States registered to approximately US $700 million.
Rising research and development to develop pharmaceutical products for the personal care and cosmetic industry have propelled the hemp oil market growth. Personal care and cosmetics had the highest market share in the North American region in 2019. It is primarily due to rising R&D spending to develop and launch hemp oil-based drugs and medicines. Similarly, the Asia-Pacific region is the fastest-growing region for the growth of CBD-based products due to a huge population and growing demand for hemp oil as medicines.
The hemp oil market is fragmented by the leading local and global players. Some of the major players which are contributing to the growth of the market include ConnOils LLC, IrieCBD, King CBD, PureKana, Folium Biosciences, CBD American Shaman, Canopy Growth, Elixinol Global Limited, Kazmira, Medical Marijuana, NuLeaf Natural, Royal CBD, Aurora Cannabis, Gaia Herbs, ENDOCA, Diamond CBD, CV Sciences, Inc, Hudson Valley Hemp, LLC, Spring Creek Labs, Cavendish Nutrition Fulfillment LLC, QC Infusion, Hemp Production Services, Green Roads, Hemp Company, CBD Oil Europe, Medical Marijuana, Inc, Isodiol International Inc, HempLife Today, Hemp Oil Canada Inc Gaia Botanicals, Canazil and among others.
The major players are launching new products and expanding the production capabilities by adopting mergers, acquisitions, and collaboration strategies, which contribute to the growth of the hemp oil market globally. For instance, in June 2019, PureCBDFactory launched a new full spectrum of 1500mg hemp oil. This oil contains terpenes, flavonoids, cannabinoids, and several other beneficial phytochemicals that support overall health and well-being.
Rising demand for FDA approvals with the surge in several government approvals for CBD-based products have propelled the market growth. For example, in October 2019, the Health Ministry of Canada has launched new rules and regulations for legalizing the sale of cannabis-based edibles, beverages, and topicals and extracts products. It created a massive demand for the Hemp Oil market in this region.
Further, on 24th Sept 2018, CBDistillery, one of the leading Cannabidiol (CBD) products manufacturers, launched isolated THC-Free pure hemp oil containing 99% pure CBD isolate used on food and beverage as preservatives and in personal care products that deliver quick relief from the pain.
Overview: IrieHemp was founded in 2015 and headquartered in San Diego, California, United States. IrieHemp is one of the global leaders in manufacturing CBD-based products such as CBD oils, essential oils, hemp oils, CBD Topicals, CBD tinctures, and other products.
Product Portfolio: The diversified products of the hemp oil includes
Relief 250mg Hemp Oil Tincture: It contains MCT Oil, Liposomal Curcumin, Full Spectrum Hemp Extract, Devil’s Claw, Skullcap, Sunflower Lecithin, Vitamin E Oil. It also contains skin-loving ingredients such as capsaicin, copaiba, and essential oils
~ 8 mg of CBD / Dose
Other Hemp Oil products include:
Key Development: In July 2017, IrieCBD Hemp company expanded its product line by launching CBD concentrates CBD dab wax and crumble.
The global hemp oil market report would provide access to an approx—104 market data table with 90 figures and 300 pages.
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