Hemp-Based Composite Market Size (2023-2030)

The Global Hemp-Based Composite Market was valued at USD 8.01 billion and is projected to reach a market size of USD 68.22 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 35.8%. 

Hemp-based composites are natural composite materials that use hemp fibers as a component. Hemp is a plant that has wide applications in various industries due to its eco-friendly and sustainable properties. Further, these composites are lightweight, flexible, and biodegradable in nature which makes them a popular component across various industries. Further, hemp-based composites are widely used in the construction and automotive industry due to their excellent insulation and sustainable properties. Furthermore, the increasing demand for sustainable industrial materials has boosted the demand for hemp-based composites in the market.

Global Hemp-Based Composite Market Drivers:

The increase in environmental concerns is boosting the demand for hemp-based composite in the market.

Due to the increase in environmental degradation on account of increased pollution and climate change, there is an increase in environmental awareness. Furthermore, industries are seeking biodegradable materials such as hemp-based composites for production and manufacturing process that helps in lowering carbon footprint. Hemp is a plant-based component that is biodegradable in nature and can easily break down on its own in the environment. Further, hemp cultivation reduces carbon dioxide in the atmosphere and thus contributes to lowering the carbon footprint. Moreover, it consumes less energy and eliminates the use of toxic chemicals in the production process. Further, these composites promote recycling and reusability as hemp waste can be reused again in the industrial process, thus reducing waste generation in the environment.

The increasing demand for hemp materials in the construction industry is fuelling the market growth for hemp-based composites.

Hemp-based composites are increasingly used in the construction industry for generating building materials. Due to their insulation properties, they are widely used in insulation materials for buildings. Moreover, these composites possess excellent thermal and acoustic insulation properties that make them suitable to be used for maintaining interior temperatures, reducing energy consumption, and maintaining a peaceful environment at home. In addition, they are used to manufacture wall panels as they are durable and lightweight in nature. Furthermore, architects and designers are increasingly using hemp-based composites in roofing materials as these materials are lightweight, protect from harmful UV rays, and reduce the structural load on the building. Furthermore, due to less energy consumption and biodegradability, hemp-based composites reduce carbon emissions into the environment and hence are considered a green construction material in the construction industry.

Global Hemp-Based Composite Market Challenges:

Sourcing of hemp-based composite can become a challenge for manufacturers. Hemp materials are quality-sourced ingredients from plants, which require organic cultivation and processing. This can become a challenge if proper infrastructure is not available, leading to delayed production of hemp materials.

Further, competition from other alternatives such as carbon fiber, fiberglass, and other natural fibers that offer additional benefits to the manufacturers, can decline the demand for hemp-based composites in the market.

Global Hemp-Based Composite Market Opportunities:

The Global Hemp-Based Composite Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, increasing demand for sustainable materials is predicted to develop the market for the Hemp-Based Composite and enhance its future growth opportunities.

COVID-19 Impact on the Global Hemp-Based Composite Market:

The pandemic hurt the hemp-based composite market. Due to global lockdown and traveling restrictions, major industries such as automotive, construction, aerospace, and others were closed down, which were the major consumers of hemp-based composites. Further, due to supply chain disruptions, there was a delay in the production and manufacturing of hemp composites, which declined the demand for hemp-based composites in the market during the pandemic.

Global Hemp-Based Composite Market Recent Developments:

• In April 2022, INCA, a globally recognized hemp manufacturing company received funding of $900,000 from the Canadian federal government to develop their hemp industry. In the same month, Blue Sky Hemp Ventures received a $500,000 grant to advance its hemp food-food processing facility in Alberta.
• In October 2021, Lanxess launched a hemp-based bio-composite material in its Tepex range of continuous fiber-reinforced thermoplastic composites. This can be used in manufacturing car components, and electronics, or for producing housing components.

HEMP-BASED COMPOSITE MARKET REPORT COVERAGE:

Global Hemp-Based Composite Market Segmentation: By Manufacturing Process

• Compression Molding

• Injection Molding

• 3D Printing

• Others

Based on market segmentation by manufacturing process, compression molding occupies the highest share of the market. Compression molding is a widely used manufacturing process for producing hemp-based composites as it is more cost-effective than other methods. In this process, hemp fibers are mixed with a thermosetting resin such as epoxy or phenolic resin for creating a mixture called prepregs. These prepregs are sheets or rolls of fiber with a medium content of resin, which are then placed inside the mold cavity and elevated at certain temperatures by heating and cooling to form the final hemp material. Further, this manufacturing process is widely used to create large and flat curved parts for the automotive and construction industry.

The 3D printing segment is the fastest-growing segment during the forecast period. 3D printing, also known as additive printing is gaining popularity in producing hemp-based composites due to its versatility and flexibility. In this process hemp fibers are mixed with bio-based resin and the mixture is then extruded layer by layer to create the desired hemp-based composite shape. Moreover, this design is built in CAD software first and then is sliced into horizontal layers using the slicing software. Furthermore, after the desired shape is ready, the extra or support structures are removed from the object to give it a finished look.

Global Hemp-Based Composite Market Segmentation: By Industry

• Automotive

• Construction

• Aerospace

• Packaging

• Others

Based on market segmentation by industry, the construction segment occupies the highest share of the market. Hemp-based composites are used in building materials such as wall panels, roofs, blocks, plasters, coatings, screeds, and other components due to their excellent insulation, thermal, acoustic, and environment-friendly properties. Moreover, as they consume less energy, they are widely used as a viable and renewable option in the green construction industry.

The automotive segment is the fastest-growing segment during the forecast period. The automotive industry increasingly uses hemp composites in manufacturing interior parts, body panels, dashboards, door panels, and other automotive components due to their lightweight and energy-efficient properties. Moreover, they help in improving fuel consumption and reducing carbon emissions in vehicles, thereby contributing towards eco-friendly vehicle production.

Furthermore, the packaging segment occupies a significant share of the market. Hemp-based composites are increasingly used in packaging materials such as boxes, containers, and others. Further, hemp-based bioplastics and composite hemp-based bioplastics are widely used for manufacturing packaging papers and boxes, thus contributing to the renewable packaging industry.

Global Hemp-Based Composite Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

Based on market segmentation by region, North America and Europe occupies the highest share of the market. Due to the increasing demand for lightweight and energy-efficient vehicles, there is a demand for hemp-based materials in the automotive sector in the regions. These include the use of hemp-based composites for manufacturing body panels, interior car parts, and others. For instance, hemp fiber composites were used in Bercella and Romeo Ferraris’s electric cars

Asia-Pacific occupies the highest share of the market. Increasing government support in the form of investments, supporting research labs, and a growing construction industry has contributed to the demand for hemp-based composites in the region. These include the use of hemp materials in plasters and coatings in building materials in the construction industry. For instance, in Uttarakhand in India, an 800 sq. ft house was built using hemp materials that possessed carbon absorption and moisture absorption properties.

Global Hemp-Based Composite Market Key Players:

1. Composites World

2. JeccComposites

3. BioComposites Group

4. Ecofibre Limited

5. HempFlax Group B.V.

6. Forever Green

7. Renaissance Fiber

8. Bombay Hemp Company

9. Hemp Inc

10. IND Hemp

11. Natural Fibers EU