Hemp Oil Market Size (2024 – 2030)

The Global Hemp Oil Market size was exhibited at USD 11.48 billion in 2023 and is projected to hit around USD 34.66 billion by 2030, growing at a CAGR of 17.1% during the forecast period from 2024 to 2030.

The primary source of hemp oil is the pressing of hemp seeds, widely utilized in the manufacturing of various personal care products owing to the presence of essential fatty acids, nutrients, and antioxidants. Hemp oil has applications in pharmaceuticals, nutraceuticals, industrial sectors, and the food and beverage industry. Variants such as CBD oil, hemp essential oil, and hemp seed oil are globally recognized and readily available. Predominantly used in skincare products, the industrial variant is employed in the production of paints, lubricants, fuels, and plastics. The nutritional content makes it suitable for massage and healing treatments. Anticipated market growth is driven by increased demands from the food and beverage and industrial sectors, coupled with expanding applications in the personal care industry, particularly in North America and Europe. The hemp oil market is expected to witness substantial expansion over the next five years, fueled by a broader geographical presence and intensified competition among market participants.

Manufacturers worldwide have dedicated efforts to ongoing research and development for innovative product offerings. Companies like Gaia Botanicals, Isodiol, and Medical Marijuana are actively engaged in introducing new hemp oil products. The market has seen the introduction of anti-aging products and gum based on hemp oil, creating opportunities globally.

Key Market Insights:

The global demand for hemp oils is on the rise, driven by various medical applications, including stress treatment. They are prominently used in the pharmaceutical industry to create pain-relieving cosmetics and personal care items. Increased investment in research and development for new hemp-based medicines is noted as people become more cognizant of their benefits. Hemp oil is recognized for its efficacy in treating chronic conditions such as sleep difficulties, nerve discomfort, chronic pain, and anxiety. The surge in online-based distribution websites further propels the expansion of the global hemp oil market.

The growing legalization of hemp oil in numerous countries, owing to its remarkable health advantages, has propelled the hemp oil industry. Notably, the legalization of the cannabis compound cannabidiol in the United States led to a farm bill allowing the production of industrial hemp (CBD).

There is a noticeable increase in the incorporation of hemp oil in the production of cosmetics and personal care items. Major players are introducing hemp oil for the treatment of joint and muscular discomfort. For instance, Synerva launched their New CBD oil Joint and Muscle Cream to address pain issues. The elderly population, driven by increased awareness and disposable income, exhibits a significant demand for hemp oil-derived medications to alleviate muscle pain, contributing to the growing demand for personal care and cosmetics items.

Global Hemp Oil Market Drivers:

The market is being driven by environmental sustainability and evolving regulatory frameworks.

The global hemp oil market is significantly influenced by the increasing focus on environmental sustainability and conscientious use of resources. Hemp plants are recognized for their minimal environmental impact, requiring fewer pesticides, herbicides, and water compared to alternative crops. Additionally, hemp cultivation contributes to soil regeneration and carbon sequestration. Governments worldwide acknowledge the ecological advantages of hemp and its potential to foster a sustainable future, leading to initiatives promoting hemp farming and the utilization of hemp-derived products like hemp oil.

Furthermore, the gradual progression of legalization and regulatory advancements related to hemp and its derivatives has played a pivotal role in propelling the global hemp oil market. Various countries and regions have identified the economic and health benefits associated with hemp, resulting in the formulation of laws facilitating its cultivation, processing, and distribution. In the United States, for example, the Agriculture Improvement Act of 2018 legalized hemp cultivation, contributing significantly to the surge in hemp oil production. Similar regulatory measures have been implemented in countries such as Canada, Australia, and parts of Europe, creating a favorable environment for the expansion of the global hemp oil market.

The market is expanding due to growing demand in the personal care and cosmetics sectors and rising awareness of health benefits.

Derived from the seeds of the Cannabis sativa plant, hemp oil boasts high levels of beneficial compounds, including omega-3 and omega-6 fatty acids, antioxidants, and essential nutrients. A key driver of the global hemp oil market is the increasing consumer awareness of its health benefits. Hemp oil is renowned for its potential therapeutic properties, encompassing anti-inflammatory, antioxidant, and neuroprotective effects. As global governments and healthcare organizations advocate for natural and holistic health approaches, the demand for hemp oil as a nutritional supplement and wellness product has seen a substantial increase.

Additionally, the cosmetics and personal care industries have emerged as significant end-users of the global hemp oil market. Hemp oil is increasingly integrated into skincare, haircare, and personal care products due to its moisturizing, nourishing, and anti-aging properties. The escalating demand for natural and organic ingredients in cosmetics has driven the incorporation of hemp oil into a diverse range of beauty and personal care items. Government reports affirm a notable rise in hemp oil usage in cosmetics, with market data indicating a steady increase in sales and market share for products infused with hemp oil.

Surging Popularity and Demand for CBD Oil Impacting Legal Dynamics

The global hemp oil market has witnessed substantial growth, propelled by the surging popularity and demand for CBD (cannabidiol) oil. Derived from the hemp plant, CBD oil has garnered widespread attention due to its potential therapeutic benefits and non-psychoactive characteristics. A key driver behind the expansion of CBD oil within the global hemp oil market is the evolving legal landscape surrounding cannabis and hemp products. Numerous countries and regions have revised regulations to permit the cultivation, processing, and sale of hemp and hemp-derived products, including CBD oil.

For example, in the United States, the Agriculture Improvement Act of 2018 (Farm Bill) legalized industrial hemp cultivation and removed it from the list of controlled substances. This policy shift has paved the way for the widespread production and availability of CBD oil in the market. According to the U.S. Department of Agriculture (USDA), licensed hemp acreage in the U.S. increased from 511,442 acres to 553,942 acres, indicating a growing interest among farmers in cultivating hemp for CBD oil production and further propelling the global hemp oil market's growth.

Global Hemp Oil Market Restraints and Challenges:

Regulatory and legal obstacles are the problems with the expanding market.

Derived from the seeds of the cannabis sativa plant, hemp oil is abundant in essential fatty acids and finds applications across the food, pharmaceutical, and cosmetics industries. Despite a promising market outlook, various challenges impede the progress of the global hemp oil market. One significant hindrance is associated with the legal and regulatory landscape governing the cultivation, extraction, and sale of hemp-derived products. While the acceptance of hemp cultivation has expanded in numerous countries, some jurisdictions maintain stringent regulations or outright prohibitions on cannabis-related items.

The regulatory constraints introduce uncertainties for stakeholders, impeding the widespread adoption and commercialization of hemp oil products. In the United States, for instance, the federal government has legalized hemp cultivation under specific conditions, but individual states may enforce distinct regulations, resulting in a fragmented market scenario. According to government data, 46 states in the US permitted hemp cultivation, while others-imposed restrictions or necessitated licenses. Similarly, in Europe, the European Union (EU) has instituted regulations for hemp cultivation and the utilization of hemp-derived products, yet individual member states may impose supplementary requirements or limitations. The intricacies of legal and regulatory frameworks pose substantial challenges to the global hemp oil market, curtailing its growth potential.

Global Hemp Oil Market Opportunities:

The global market for hemp oil has experienced notable transformations in recent years and is anticipated to undergo significant shifts in the foreseeable future, driven by alterations in production sources, shifts in consumer preferences, and adjustments to market parameters. Hemp oil holds extensive applications in the worldwide food and beverage industry, as well as in personal care products. Moreover, substantial investments in research and development, coupled with the increasing implementation of assertive marketing strategies by prominent hemp oil manufacturers, stand out as crucial factors projected to sustain the expansion of the target market in the years to come.

 HEMP OIL MARKET REPORT COVERAGE:

Global Hemp Oil Market Segmentation: By Type

• Hemp Seed Oil

• CBD Hemp Oil

Within the global hemp oil market segmentation, various types play distinctive roles, contributing to the industry's dynamism. Notably, CBD Hemp Oil takes the lead in this category, asserting its prominence due to the increasing popularity of CBD-infused products, which have garnered attention for potential health benefits. Significantly, during the forecast period, CBD Hemp Oil is anticipated to be the fastest-growing type, emphasizing its sustained appeal and contribution to market expansion.

Global Hemp Oil Market Segmentation: By Application

• Food

• Beverages

• Personal Care Products

• Textiles and Pharmaceuticals

The global hemp oil market unfolds a diverse array of applications meeting varied consumer needs. These applications span Food, Beverages, Personal Care Products, Textiles, and Pharmaceuticals. Among these, the Food segment assumes a central role as the largest application category. This prominence is fueled by the growing integration of hemp oil into a range of food products, leveraging its nutritional value and potential health benefits. Remarkably, the Food segment is also poised to be the fastest-growing application during the forecast period, indicating a continual surge in consumer demand for hemp-infused food items.

Global Hemp Oil Market Segmentation: By Region

• North America 

• Asia-Pacific 

• Europe 

• South America 

• Middle East and Africa

The revenue distribution in the worldwide hemp oil market varies across regions, with North America holding a substantial share, followed by Europe. This is attributed to the widespread adoption of hemp oil-based personal care products and food and beverages in countries like Canada, the United States, France, the United Kingdom, Italy, and Germany within these regions. The Asia-Pacific region is anticipated to witness noteworthy expansion in the target market, driven by an increasing demand for various massage and healing treatments, the widespread adoption of anti-aging products based on hemp oil, and a strong uptake of hemp oil in food and beverages in countries such as China, Japan, and India.

North America is expected to experience the highest Compound Annual Growth Rate (CAGR) from 2024 to 2030, propelled by a growing demand for various end applications in the region and the relaxation of stringent regulations on the sale of hemp oil to consumers in the United States.

COVID-19 Impact on the Global Hemp Oil Market:

The Global hemp oil market encountered a series of challenges and opportunities in the wake of the COVID-19 pandemic. As the world confronted the health crisis and implemented diverse measures to curb the virus's spread, businesses, including those in the hemp oil market, grappled with disruptions in supply chains, shifts in consumer behavior, and alterations in market dynamics. The pandemic induced significant disturbances in global supply chains, affecting the accessibility and distribution of hemp oil products. Measures such as lockdowns, travel restrictions, and temporary closures of manufacturing facilities disrupted both the production and transportation of hemp oil.

The COVID-19 pandemic triggered shifts in consumer behavior, marked by an increased emphasis on health and wellness. With heightened awareness of personal well-being, there emerged a growing interest in natural and plant-based products, including hemp oil. Renowned for its potential health benefits, such as alleviating inflammation and anxiety, hemp oil witnessed a surge in demand. Governments and health organizations underscored the importance of maintaining a robust immune system, contributing to the heightened demand for products like hemp oil.

Recent Trends and Advancements in the Global Hemp Oil Market:

In the skincare and beauty product industry, the well-established company Plum launched Hemp Cleansing Oil on January 30, 2023. This novel product is meticulously crafted to efficiently eliminate makeup and impurities from the skin. Its formulation incorporates Hemp Seed Oil, renowned for its rich content of omega fatty acids, including 3, 6, and 9. The primary objective of Plum's Hemp Cleansing Oil is not only to cleanse the skin but also to contribute to its restoration and revitalization.

On February 1, 2022, PepsiCo revealed a hemp seed-infused beverage under its Rockstar Energy brand. This distinctive drink combines the nutritional benefits of hemp seeds with lemon balm, spearmint, and caffeine. Available in three enticing flavors—passion fruit, blueberry, and raspberry cucumber—the product is designed to cater to consumers seeking refreshing and invigorating beverages with added nutritional value. By integrating hemp seeds into their energy drink, PepsiCo aims to meet the evolving preferences of health-conscious consumers.

Canada-based reputable company Irwin Naturals introduced CBD 25mg Softgels on March 24, 2023. This exclusive product is available through the Medicinal Medical Group platform across Canada. The CBD 25mg Softgels are presented in five distinct formulations, addressing various consumer preferences. These formulations include 10 mg THC, 25 mg CBD; a balanced 1:1 ratio of 10 mg CBD and 10 mg THC; a 3:1 ratio featuring 30 mg CBD and 10 mg THC; and a unique blend of THC and CBN (cannabinol) in a 2:1 ratio, comprising 10 mg THC and 5 mg CBN. Irwin Naturals aims to offer consumers a diverse range of options to address their specific wellness needs through these CBD Softgels.

Key Players:

1. King CBD

2. Royal CBD

3. Kazmira

4. Cavendish Nutrition Fulfillment LLC

5. QC Infusion

6. Hemp Oil Canada Inc

7. Canazil

8. Folium Biosciences

9. Pharmahemp d.o.o.

10. Moon Mother Hemp Company