The global hemp derivative market was valued at US$ 5,953.86 million in 2021 and is projected to reach US$ 20,977.94 million by 2028; it is expected to grow at a CAGR of 19.7% from 2021 to 2028.

Hemp or industrial hemp is a variety of cannabis sativa plant species, which are specifically grown for industrial use. Hemp derivatives, such as CBD, seed oil, and fibers, are derived from hemp and have various applications in several end-use industries, such as food and beverage, pharmaceuticals, personal care, and animal feed.

Based on application, the hemp derivative market is segmented into food and beverages, pharmaceutical and nutraceutical, personal care, textile, and others. In 2021, the textiles segment dominated the market. Industrial hemp fiber, which is primarily bast fiber, is being widely used for manufacturing textiles, such as consumer fabrics and technical textiles. The fabric made from hemp is strong and is naturally resistant to UV light, mold, and mildew, which represents an added advantage over other fabrics. Hemp has been grown and cultivated for its durable inner fibers that are ideal for making clothes. Hemp fabric is a biodegradable, renewable, and natural material, which makes it superior to synthetic textile materials, such as nylon, spandex, acrylic, and polyester. The fabrics made from hemp are hype-allergenic and does not cause any irritation to the skin. Hemp is an exceptional durable fabric, which lasts longer than cotton and does not lose its shape.

Geographically, the hemp derivative market is segmented into North America, Europe, Asia Pacific (APAC), South and Central America (SAM), and Middle East & Africa (MEA). In 2021, Asia Pacific held the largest revenue share of the market. The increase in awareness about the medical benefits of hemp derivates has led to an increase in the utilization of hemp derivatives in the region. Along with this, hemp derivatives find several applications in the textile industry. This dominance can be attributed to the extensive production and consumption of hemp fibers in the textile and paper industry. Furthermore, the booming market for cosmetics and personal care products in Asia Pacific and legalization of industrial hemp in food supplements is estimated to drive the hemp derivatives market in the region. In recent years, there has been an increase in consciousness regarding personal appearance among individuals in Asia Pacific, which has led to an increase in demand for cosmetic products, resulting in the growth of the cosmetic market in the region. The desire for a presentable personal image among Asian consumers has led to an increased awareness of personal hygiene habits.

The ongoing COVID-19 pandemic has had a relatively positive impact on the hemp derivatives market. The pandemic helped to develop awareness and interest in the medical sector of hemp. The crisis has been a disagreeable and stressful time for most of the population across the world. Therefore, people worldwide have started consuming hemp derivative products to treat their anxiety and stress. Several significant users have increased their consumption. Consumption to be used for a sleep disorder and depression is conjointly hyperbolic. Due to an increased focus on health and wellness during the pandemic, there has been an increased search on Google about the health benefits provided by hemp derivatives, which is increasing the awareness about these derivatives. Along with this, a lot of countries have been hit with tax shortfalls amid the pandemic. The governments of countries are looking for sources of tax income. The potential source can be the legalization of hemp and its derivatives, which could become progressively engaging. An increase in the sale of hemp and its derivatives by legal sellers can provide a potential tax income gain.

Various research activities have also been carried out during the COVID-19 pandemic that focused on the use of hemp and its derivatives for the treatment of COVID-19. Researchers in Canada carried out a study to ensure whether Cannabis sativa extracts can help in reducing the levels of the host cell receptor that the SARS-CoV-2 virus clings on to gain entry and spread. Along with this, STERO Biotech, a company headquartered in Israel, provides insight into the use of cannabis and CBD as a potential treatment for COVID-19. Thus, various research activities on hemp and its derivates to find out their use in the COVID-19 treatment are having a positive impact on the hemp derivatives market.

Colorado Hemp Works, Inc; Dun Agro Hemp Group; Ecofiber, Hempflax Group B.V.; Hempoland Sp. Z O.O.; Konoplex; Mh Medical Hemp Gmbh; Plains Industrial Hemp Processing Ltd; South Hemp; and BAFA Neu GmbH. are among the major players operating in the global hemp derivative market.

The overall global hemp derivative market size has been derived in accordance with both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data, as well as to gain analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the global hemp derivative market.