May 18, 2024
Hemp Fiber Market

Hemp Fiber Market Is Expected To Be Flourished By Increased Usage In Automotive Industry

Hemp fiber is obtained from the hemp plant’s stems and stalks. It is typically composed of cellulose, lignin, and other materials. Hemp fiber has high tensile strength, moisture absorbency, and low thermal expansion properties. It is used to produce a variety of products such as textiles, paper, fiberboard, bioplastics, insulation, concrete-like blocks, oil absorbents, and construction materials. Hemp fibers are eco-friendly and more sustainable than synthetic fibers. They can be blended with other natural or synthetic fibers to enhance durability and performance. Growing environmental consciousness is boosting the demand for hemp-based sustainable products in various end-use industries.

The global Hemp Fiber Market is estimated to be valued at US$ 5.76 Bn in 2023 and is expected to exhibit a CAGR of 22%  over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Increased Usage in the Automotive Industry: Hemp fiber is increasingly being used in the automotive industry to reduce the overall weight of vehicles, lower emissions, and enhance fuel efficiency. Growing environmental regulations are propelling automakers to adopt plant-based and natural materials in vehicle manufacturing. Hemp fiber composites provide up to 25% weight savings compared to glass fiber and can replace fiberglass, carbon fiber, plastics, and other materials in various vehicle components. Major automotive OEMs such as BMW, Ford, and General Motors are incorporating hemp-based biocomposites to produce door panels, seat cushions, dashboards, and other interior and exterior parts. This factor is expected to significantly drive the demand for hemp fiber over the forecast period.

Flourished by Automotive Adoption: The growing adoption of hemp fiber by automakers as a lightweight and eco-friendly alternative to petrol-derived materials is expected to flourish the global hemp fiber market over the forecast period. Automotive production volumes are rapidly increasing worldwide to meet rising vehicle demand, thereby boosting the consumption of hemp fibers in the industry. Modern vehicle designs emphasizing fuel savings and lower emissions through lightweight engineering are offering huge opportunities for natural fibers like hemp. This is likely to propel hemp fiber sales in the automotive composites market through 2030.

Segment Analysis

The Hemp Fiber Market Share can be segmented based on product, application and region. By product, the market is divided into long (bast) fibers and short (core) fibers. Long fibers are dominating the market as they have higher tensile strength and are preferred for industrial applications like textiles, composites and paper. By application, the textile segment holds the largest market share as hemp fibers are considered eco-friendly substitutes for cotton and other synthetic fibers. Composites is the fastest growing segment due to increasing usage of natural fiber-reinforced composites in automotive and construction industries.

PEST Analysis

Political: Favorable government policies and the legalization of hemp cultivation in many countries is boosting the market. However, legislative restrictions on THC content limits growth in some regions.
Economic: Strong economic growth coupled with growing preference for natural and eco-friendly products is fueling market demand. Recession can impact the market adversely.
Social: Rising awareness about environmental protection and sustainable practices is positively impacting the market. However, cultural acceptance varies across regions.
Technological: Advancements in hemp processing and fiber extraction techniques are improving yields and quality. Investments in R&D are promoting new product development.

Key Takeaways

The global hemp fiber market is expected to witness high growth over the forecast period. North America currently dominates the market due to legalization of hemp cultivation and increasing adoption in textiles, automotive and construction industries in the region. Key players operating in the hemp fiber market are HempFlax, Cavac Biomateriaux, BaFa, Hemp Planet, Dunagro, American Hemp, Hempline, Hemp Inc, Ecofibre, GenCanna, Hemp Oil Canada, Hemp Poland, Plains Industrial Hemp Processing, Colorado Hemp Works, MH Medical Hemp, Hempco, Hempfield Farms, Hemp Tech, Tilray, and Canopy Growth.

The European market is expected to grow at fastest pace due to increasing demand from textile and composites industry in countries like France, UK and Germany. Large cultivable area and favorable cultivation conditions in Canada and the US are driving growth of North American market. However, strict regulatory norms and cultural barriers are major restraining factors in certain parts of Asia Pacific and Middle Eastern regions.

Key players operating in the hemp fiber market are focusing on capacity expansion, new product development and mergers & acquisitions to strengthen their market position. Promising future applications of hemp fibers in biocomposites present significant growth opportunities for manufacturers. However, heavy reliance on government policies and regulations continues to pose challenges.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it