Hemp Oil Market Size (2024 – 2030)

The Global Hemp Oil Market was valued at USD 91.59 million in 2023 and will row at a CAGR of 7% from 2024 to 2030. The market is expected to reach USD 147.07 million by 2030.

The hemp oil market is on the rise, fueled by growing interest in natural health products and the expanding legalization of hemp cultivation. This versatile oil, derived from hemp seeds, finds uses in food, cosmetics, and even pharmaceuticals due to its perceived health benefits. As consumer demand for sustainable and plant-based products increases, the hemp oil market is expected to keep growing in the coming years.

Key Market Insights:
The organic segment within the hemp seed oil market is expected to witness an even faster growth rate, reaching a CAGR of 16.4% by 2030.

North America holds the largest market share for hemp seed oil, accounting for around 40%.

Hemp seed oil's potential benefits for mental well-being are contributing to market growth.

While CBD oil receives significant attention, hemp seed oil offers distinct advantages. Derived from the hemp seed itself, it's rich in nutrients and doesn't contain psychoactive compounds like THC.

Global Hemp Oil Market Drivers:

The growing legalization of hemp cultivation is driving the market growth

The shift in the legal landscape surrounding hemp cultivation is a major driver for the hemp oil market. In the past, hemp, a close relative of marijuana, was often lumped together in regulations, hindering its growth. However, many countries are now recognizing the distinction between hemp and marijuana. Hemp contains only trace amounts of THC, the psychoactive compound in marijuana, and is not intoxicating. This realization, along with the potential economic and environmental benefits of hemp, is leading to more relaxed regulations. As cultivation restrictions ease, hemp farmers can expand their operations, providing a steady supply of raw materials to meet the growing demand for hemp oil. This creates a positive feedback loop, where increased hemp cultivation fuels a larger and more affordable hemp oil market, attracting more consumers and further boosting the industry.

Rising consumer demand for natural health products is driving the market growth

The rise of natural health consciousness is propelling the hemp oil market. Consumers are turning away from synthetic ingredients and chemicals, seeking plant-based alternatives with perceived health benefits. Hemp oil fits this trend perfectly. It boasts a rich profile of essential fatty acids, including omega-3s and omega-6s, crucial for heart and brain health. Additionally, some studies suggest hemp oil's potential to alleviate inflammation, reduce anxiety, and improve skin health. This aligns with the growing interest in holistic wellness, where consumers are looking for products that address both physical and mental well-being. This trend is further fueled by readily available information online and positive anecdotal experiences shared by users. Social media and online communities dedicated to natural health are creating a space for consumers to learn about hemp oil and its potential benefits, further driving its popularity.

Perceived health benefits of hemp oil are driving the market growth

Hemp oil is attracting a growing consumer base due to its vast array of perceived health benefits, even though research is still catching up. Many users report relief from chronic inflammation, a prevalent condition linked to various health issues. The essential fatty acids in hemp oil, particularly gamma-linolenic acid (GLA), are believed to play a role in reducing inflammation throughout the body. Additionally, hemp oil's potential to ease anxiety is a major draw for consumers seeking natural stress relief. Some studies suggest CBD, a compound found in hemp oil, may interact with the body's endocannabinoid system, known to regulate mood and anxiety. Furthermore, hemp oil's rich fatty acid profile is thought to contribute to improved skin health by promoting moisture retention and reducing inflammation that can manifest as dryness, itchiness, and even acne. While conclusive scientific evidence is still emerging, these perceived benefits are driving a surge in consumer interest and experimentation with hemp oil as a natural path to better health.

Global Hemp Oil Market challenges and restraints:

hemp cultivation remains illegal due to its association with marijuana is restricting the market growth

The lingering shadow of marijuana prohibition continues to pose a major obstacle for the hemp oil market in certain regions. Because hemp and marijuana are both classified as Cannabis sativa, some countries maintain an outright ban on hemp cultivation due to concerns about potential diversion for psychoactive purposes. This not only hinders domestic production of hemp oil, a valuable and sustainable resource, but also forces those regions to rely on imports, which can be expensive, have quality inconsistencies, and create a less environmentally friendly supply chain due to increased transportation needs. This situation creates an artificial barrier to market development, preventing these regions from fully capitalizing on the economic and health benefits hemp oil offers

Raw Material Fluctuations is restricting the market growth

The availability of high-quality hemp for oil production is a double-edged sword. Factors like weather conditions, pest outbreaks, and limited growing areas can cause fluctuations in supply. When good quality hemp is scarce, manufacturers scramble to secure enough for production, leading to price hikes. This instability disrupts supply chains, forcing producers to adjust their processes and potentially raise consumer prices. Retailers caught in the middle face potential stockouts and may struggle to maintain consistent pricing, ultimately impacting their profit margins. To mitigate these risks, some companies resort to long-term contracts with growers or explore vertical integration, where they control both cultivation and processing.

Market Opportunities:

The hemp oil market brims with exciting opportunities. Growing consumer interest in natural wellness solutions creates a prime market for hemp seed oil's rich nutrient profile and potential benefits for mental well-being. Furthermore, the increasing demand for sustainable and organic products presents a golden opportunity for organic hemp seed oil producers. Innovation in product development can unlock new applications, such as functional foods and beverages infused with hemp seed oil for added nutritional value. Additionally, research on the potential benefits of hemp seed oil for specific health conditions can open doors to new market segments. Emerging markets with favorable regulatory landscapes offer significant growth potential, particularly in the Asia Pacific region. Finally, with growing awareness about the environmental impact of traditional materials, hemp's potential as a sustainable alternative in various industries (textiles, construction) creates a ripple effect that can further propel the hemp oil market forward.

HEMP OIL MARKET REPORT COVERAGE:

Hemp Oil Market Segmentation - by Product Type

• Hemp Seed Oil

• CBD Hemp Oil

CBD hemp oil reigns supreme in the hemp oil market. While both hemp seed oil and CBD hemp oil offer unique benefits, the market prioritizes the potential health effects associated with CBD. CBD's popularity stems from ongoing research into its effectiveness in managing various conditions like anxiety, pain, and inflammation. This has fueled consumer demand for CBD-rich hemp oil products, propelling this segment to become the dominant force in the market.

Hemp Oil Market Segmentation - By Application

• Food & Beverages

• Nutraceuticals

• Cosmetics & Personal Care

• Pharmaceuticals

Currently, the nutraceutical application dominates the hemp oil market. This dominance is driven by the readily available nutraceutical products like capsules, tinctures, and gummies. Consumers seeking natural solutions for overall well-being readily embrace these convenient options. The perceived health benefits of hemp oil, including improved sleep, reduced anxiety, and anti-inflammatory properties, contribute to the popularity of nutraceutical products. This ease of access and focus on preventative health currently positions nutraceuticals as the leading application for hemp oil

Hemp Oil Market Segmentation - Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

North America reigns supreme in the global hemp oil market, capturing around 40% of the share. This dominance can be attributed to several factors: favorable regulations surrounding hemp cultivation and use, a strong health-conscious population readily adopting natural remedies, and a well-established infrastructure for production and distribution. However, the Asia-Pacific region is projected to be the fastest-growing market in the coming years. This surge is fueled by a burgeoning middle class with rising disposable income, increasing awareness of hemp oil's benefits, and a growing focus on sustainable products. Europe presents a steady growth trajectory due to a supportive regulatory environment and a strong focus on wellness. South America the Middle East and Africa hold potential for future growth, but their markets are currently hindered by stricter regulations and a lack of established infrastructure.

COVID-19 Impact Analysis on the Global Hemp Oil Market

The COVID-19 pandemic produced a mixed bag of effects for the global hemp oil market. Initially, supply chains faced disruptions due to lockdowns and travel restrictions. This, coupled with a general economic slowdown, led to temporary market fluctuations. However, the tide soon turned. A heightened focus on health and immunity during the pandemic spurred consumer interest in natural wellness solutions. Hemp seed oil's potential benefits for overall well-being, including stress reduction and improved sleep, resonated with consumers seeking natural ways to manage pandemic anxieties. Additionally, the rising demand for healthy food products presented an opportunity for hemp seed oil as a nutritional powerhouse. Furthermore, some studies explored the potential of cannabinoids, found in hemp, to manage COVID-19 symptoms, although more research is needed. This positive publicity further boosted the market. Interestingly, the pandemic also accelerated the shift towards e-commerce for hemp oil products. Manufacturers adapted by establishing online platforms and strengthening their digital presence, catering to a more homebound consumer base. Overall, while the initial stages of the pandemic presented challenges, the hemp oil market displayed resilience and ultimately benefitted from a growing focus on health and wellness during these unprecedented times.

Latest trends/Developments

The hemp oil market is buzzing with innovation and exciting developments. Sustainability remains a key driver, with producers embracing organic farming practices and exploring ways to minimize environmental impact throughout the supply chain. Product diversification is another hot trend. We're seeing a move beyond traditional tinctures and capsules, with hemp oil infused into a wider range of products. Functional foods and beverages are gaining traction, offering consumers a convenient way to add hemp's nutritional benefits to their diet. The personal care and cosmetics industry is also embracing hemp oil's potential, with new lines of skincare and haircare products touting its moisturizing and antioxidant properties. Research into the potential health benefits of hemp oil continues to expand. Studies are exploring its effectiveness for managing various conditions, from anxiety and inflammation to skin disorders and even neurodegenerative diseases. This growing body of research, if supported by clinical trials, could open doors to entirely new market segments for hemp oil in the future. Finally, legal developments are paving the way for further growth. As more countries embrace hemp cultivation and clear up regulatory hurdles, the market is poised for significant expansion in previously untapped regions. These trends all point towards a bright future for the hemp oil market, driven by innovation, sustainability, and a growing understanding of hemp's potential health benefits.

Key Players:

1. Charlotte's Web Holdings

2. Hempacco

3. Aurora Cannabis Inc.

4. Canopy Growth Corporation

5. Medterra CBD

6. Elixinol Global Limited

7. Nutiva

8. Hemplogica

9. Paul Mitchell

10. Leben Naturprodukte GmbH