Hemp-Based Food Market

Hemp-Based Food Market Overview:

The global hemp-based food market size reached US$ 1.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 4.9 Billion by 2032, exhibiting a growth rate (CAGR) of 13.4% during 2024-2032. There are various factors that are driving the market, which include rising preferences of individuals for natural and organic food products, increasing consumption of gourmet food items, and the legalization of hemp cultivation and the relaxation of regulations.

Hemp-Based Food Market Analysis:

• Major Market Drivers: There is a rise in the demand for plant-based products among health-conscious individuals. This, along with the expansion of distribution channels, is supporting the market growth.
• Key Market Trends: There is an increase in the social media influence on individuals and the introduction of a wide range of products by key players.
• Geographical Trends: North America enjoys the leading position in the market share, which can be attributed to the rising consumption of natural and nutrient-rich food items.
• Competitive Landscape: Various players in the hemp-based food industry are Hempfoods Ltd., Tilray, Inc., GFR Ingredients, Hemp Foods Australia Pty Ltd, Aurora Cannabis Inc., Naturally Splendid Enterprises Ltd., Isodiol International Inc, Navitas LLC, Nutiva, T12 Holdings Pty Ltd., among many others.
• Challenges and Opportunities: The market poses a risk like regulatory uncertainty, which can create challenges for manufacturers in ensuring compliance with various regulations. Conversely, it offers various opportunities such as the rising focus on customized and personalized food products and collaborations, partnerships, and mergers and acquisitions (M&As) among major market players.
   

Hemp-Based Food Market Trends:

Increasing Health and Wellness Awareness

As per the IMARC Group research report, the health and wellness market was US$ 3,670.4 Billion in 2023 across the globe. The growing awareness about health and wellness represents one of the key factors influencing the market positively. Additionally, the market is growing due to the general public's increasing health consciousness about the significance of the nutritional content of the food items they consume. Food items that are derived from hemp such hemp oil and seeds have high levels of protein, vitamins, and important nutrients like omega-3 and omega-6 fatty acids. Besides this, the industry is expanding because of the rising popularity of vegetarianism and veganism diets. People are preferring plant-based protein sources and functional food items. Furthermore, rising preferences for natural and organic products are catalyzing the hemp-based food demand.

Expansion of Legalization and Regulation

The legalization of hemp cultivation and the relaxation of regulations about hemp-derived products shows another growth-inducing factor of the market. Governing agencies of numerous countries are updating their laws to permit the sale as well as production of hemp-based items. This shifting legal environment is spurring innovation, investment, and product development. Moreover, the removal of trade restrictions in various countries is motivating food players to include hemp ingredients in their products, which further creates a positive hemp-based food market outlook. Besides this, legalization is encouraging companies to engage in diverse kinds of partnerships. For instance, on 5 July 2023, Burcon NutraScience Corporation, a global technology leader in the development of plant-based proteins for foods and beverages, unveiled that it has partnered with HPS Food and Ingredients Inc. (HPS), a leading provider of food ingredients based on hempseed, to explore the commercialization of Burcon's unique high purity and soluble hempseed protein isolate. With this partnership, the company hopes to take advantage of the growing trend of the hempseed protein market and provide people all over the world with high-quality plant-based protein options.

Sustainability and Environmental Concerns

The increasing focus on sustainability and environmental consciousness is encouraging people to seek out alternative and eco-friendly food sources, which is impelling the hemp-based food market growth. Compared to many traditional crops, hemp farming uses less water and pesticides, making it an eco-friendlier choice. Apart from this, rising environmental concerns associated with the food processing industry are catalyzing the demand for food items having a reduced ecological footprint. In addition, a large number of companies are minimizing their carbon footprint by using sustainable packaging solutions like compostable and biodegradable materials. On 18 April 2023, Hemperella launched an innovative new line of hemp-based superfood products in 900 LIDL stores across Poland and 400 LIDL stores throughout the Netherlands and became the leading hemp Superfood brand for consumers who want to maintain a healthy lifestyle. Hemperella's nutritious and delicious products are sourced from high-quality and sustainably grown hemp plants and are packed with essential vitamins, minerals, and essential amino acids.

Hemp-Based Food Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product and distribution channel.

Breakup by Product:

• Hemp Protein Powder
• Hemp Seed Oil
• Hemp Seeds
• Others
   

Hemp seeds account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product. This includes hemp protein powder, hemp seed oil, hemp seeds, and others. According to the report, hemp seeds represented the largest segment.

Hemp seeds have essential nutrients like fatty acids, protein, and fiber. Additionally, their balanced ratio of omega-3 and omega-6 promotes individuals’ general health. These seeds are very simple to use in a variety of recipes. They appeal to a broader spectrum of consumers due to their ability to be eaten raw, cooked, or roasted. Compared to other hemp-based food products like hemp milk or hemp oil, they have a longer shelf life. Furthermore, hemp seeds are relatively easy to cultivate, and harvest compared to other parts of the hemp plant, which makes them a cost-effective option for farmers and leads to a positive hemp-based food market forecast.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Stores
• Others
   

Supermarkets and hypermarkets hold the largest share of the industry

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes supermarkets and hypermarkets, convenience stores, online stores, and others. According to the report, supermarkets and hypermarkets accounted for the largest market share.

Supermarkets and hypermarkets are popular shopping solutions that provide hemp-based food goods with excellent visibility. These retail establishments use a variety of marketing and promotional strategies including loyalty programs, bundled offers, and discounts. In addition, they facilitate easy access to a larger range of consumers for food products that are made from hemp. Supermarkets and hypermarkets provide a one-stop shopping experience that allows people to purchase other grocery goods in addition to hemp-based food items. These stores also feature a wide range of products including oils, seeds, and ready-to-eat (RTE) snacks that are all hemp-based.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest hemp-based food market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for hemp-based food.

The presence of a robust supply chain at sourcing, manufacturing, and distributing hemp-based food items in the North America region is bolstering the market growth. This streamlines market operations and minimizes disruptions. Additionally, hemp-based food products are widely available across offline retail channels in the region. This retail presence makes the products more accessible to individuals. Apart from this, the rising health consciousness among North American consumers is driving the demand for all-natural and nutrient-rich foods. Furthermore, in North America, particularly the United States, has a well-established regulatory environment for hemp cultivation and product development, which creates a more secure landscape for investors and manufacturers, thereby increasing the hemp-based food market value. On 13 March 2024, Manitoba Harvest Hemp Foods, a pioneer and leader in branded hemp-based food items and is recognized as a Certified B Corporation and the first Canadian food company to attain a Carbonzero Certification, introduced its latest hemp-based food innovations at the Natural Products Expo West. The event features the company's new Superseed Oatmeal and a Bioactive Fiber product aimed at supporting gut health. These oatmeals are blended with hemp hearts and flax to provide a source of protein, fiber, and omega fatty acids.

Competitive Landscape:

• The hemp-based market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the hemp-based food industry include Hempfoods Ltd., Tilray, Inc., GFR Ingredients, Hemp Foods Australia Pty Ltd, Aurora Cannabis Inc., Naturally Splendid Enterprises Ltd., Isodiol International Inc, Navitas LLC, Nutiva, and T12 Holdings Pty Ltd.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Companies are working to streamline their supply chain, which includes sourcing hemp to final product delivery to reduce operational costs, improve efficiency, and ensure the consistent quality of their products. Additionally, they are continuously innovating to introduce new products such as hemp protein powders and hemp-infused beverages. Apart from this, many companies are focusing on educating consumers about the health benefits of hemp-based foods. This includes online resources, informational packaging, and community outreach programs to increase consumer awareness and thereby hemp-based food market revenue. They are introducing new products to grab the attention of a wider consumer base. Moreover, various leading companies are increasingly adopting eco-friendly practices in hemp cultivation, production, and packaging to promote environmental health. On 23 March 2023, UK brand Gaia’s Farming Co., best known for its hemp-based milk alternatives, launched a new range of hemp and nut butters. Containing roasted nuts combined with hemp hearts, the products are all free of palm oil and vegan-friendly, with no added salt. The range includes hemp and peanut butter in three varieties.

Hemp-Based Food Market News:

• 1 February 2023: Hemp Foods Australia, a subsidiary of Elixinol Wellness and Australia’s leading hemp food company, announced a new nationwide distribution deal with Australia’s largest supermarket chain, Woolworths. Under the deal, the company’s certified organic hemp gold seed oil will increase, ranging from 100 Woolworths stores to 948 stores nationwide.
• 1 March 2023: Planet Based Foods Global Inc. announced that its wholly-owned subsidiary Planet Based Foods announced its expansion into the non-dairy frozen dessert category with the unveiling of new hemp-based and organic vegan ice cream at Natural Products EXPO West.

Hemp-Based Food Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the hemp-based food industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.