Global Market

At present, hemp is cultivated for commercial or research purposes in at least 47 countries. Canada, China, Chile, France, and North Korea are currently the largest producers of hemp while the USA is the largest importer of hemp products, obtaining most of its seed and fiber from Canada and China, respectively.

Global acreage (excluding Canada) in hemp cultivation in 2016 – both hemp seed and hemp tow waste – is reported at about 192,000 acres, with a reported total production of 355 million pounds.

In 2016, European countries produced hemp on more than 80,000 acres. The EU has an active hemp market, with production in most member nations. Production is centered in France, the Netherlands, Lithuania, and Romania. Many EU countries lifted their bans on hemp production in the 1990s and, until recently, also subsidized the production of “flax and hemp” under the EU’s Common Agricultural Policy. Most EU production is of hurds, seeds, fibers, and pharmaceuticals. Other non-EU European countries with reported hemp production include Russia, Ukraine, and Switzerland.

China is another major producer, mostly of hemp textiles and related products, as well as a major supplier to the United States. In 2016, China’s hemp was grown on about 20,000 acres. FAO data also report hemp production in Chile, China, Iran, Japan, South and North Korea, Pakistan, Russia, Syria, and Turkey. Other countries with active hemp grower and/or consumer markets not included in FAO’s annual compilation are New Zealand, India, Egypt, South Africa, Thailand, Malawi, and Uruguay.

Still, as a share of total crop production in these countries, hemp production accounts for a negligible share (less than 0.5%) of total acreage.

Hemp acreage in Canada and the European Union countries reached record levels in 2017, nearly 140,000 acres and about 90,000 acres respectively, which could put global acreage at more than 330,000 acres.

European Hemp Market

Between 2013-2016 some 79,500 tons of hemp were produced across Europe. In 2016, European countries produced hemp on more than 80,000 acres, equating to an estimated value of €50 million.

The EU has an active hemp market, with production in most member nations. Production is centered in France, the Netherlands, Lithuania, and Romania. Many EU countries lifted their bans on hemp production in the 1990s and, until recently, also subsidized the production of “flax and hemp” under the EU’s Common Agricultural Policy. Most EU production is of hurds, seeds, fibers, and pharmaceuticals. Europe, particularly France and Finland, have a long history using hemp for fibres, construction material and textiles, though in the last 25 years this sector has come into bloom, increasing production by upwards of 500% (that’s 250% in lt 8 years).

The demand for hemp has been fueled by the increasingly diverse use of this cash crop. In 2016, European cultivation grew by 32% form 2015 and European countries produced hemp on more than 80,000 acres – a record high and accounting for about 40% of FAO-reported global acreage. This marks significant growth since 2011 when there was a total of 8,000 hectares used for hemp cultivation.

The EU has an active hemp market, with production in most member nations. Production is centered in France, the Netherlands, Lithuania, and Romania.

France is the main producer of hemp, accounting for almost 50% of Europe’s total production. Baltic area has rapidly emerged to become the region’s second biggest hemp grower. The low cost of land (compared to other European countries) makes the Baltics very attractive for future growth opportunities.

The EU has subsidized the European hemp market over the last 20 years as part of green policy initiatives. However, with greater demand and stronger prices being recorded, the European market is beginning to move towards a free market model.

Hemp is also an excellent source of CBD, which can be extracted for use in an array of food supplements, pharmaceuticals and cosmetics. According to research firm Brightfield Group, the rapidly growing CBD market (for food supplements and cosmetics) hit €144 million in 2017 and is projected to reach €850 million within the next three years.

We offer a Hemp Cultivation Business Plan Template which will help you to create professional business plan for your hemp cultivation facilities to break down your costs, so you know how much it will take to get into the business.

Related Post