5. The hemp market

Before delving into market trends in the hemp sector, it's essential to consider several key factors:

Versatility and Co-Products: Hemp is a versatile raw material that can be used to produce a wide range of products. When analysing the hemp market, it's crucial to consider the potential for generating co-products alongside the primary product. This holistic approach should be integrated into business plans for hemp cultivation and initial processing. Not only does this strategy enhance environmental sustainability, but it also maximizes revenue by utilising all parts of the hemp plant.

Market Maturity and Awareness: Currently, many hemp products occupy niche markets. There is a need for increased consumer and public stakeholder awareness about the benefits of hemp in its various forms. This challenge is compounded by the necessity to invest in manufacturing infrastructure to support market growth. However, growing interest from investors indicates that we may see a rapid expansion in hemp cultivation, particularly for bio-based materials, in Europe over the next few years.

Regulatory Framework: The regulatory landscape for hemp products varies significantly depending on the product category. For some categories, regulations are relatively straightforward, allowing market development without significant barriers. However, in the food supplement sector, regulatory challenges remain, especially concerning the marketing of hemp extracts, which have not yet received full approval from the European Food Safety Authority (EFSA). Producers targeting the food and feed markets must navigate these regulatory complexities carefully to ensure compliance.

Market Transparency: Transparency in the hemp sector remains a challenge. Data on market size, prices, and volumes are scarce. This lack of transparency is partly due to the sector's relatively small size compared to other industries, and partly because operators are hesitant to share information that might affect their competitive advantage. Achieving greater transparency would benefit the industry, providing clearer insights for all stakeholders and fostering a more robust market environment.

In the following sections we will look specifically at all hemp applications and the status of the related markets and value chains.