Hemp belongs to the same flora species as cannabis. The only distinguishing feature is that it contains low levels of tetrahydrocannabinol (THC). According to the U.S. 2018 farm law, hemp is not considered cannabis if it contains 0.3% or less THC.

Hemp cultivation is permitted in 36 countries globally, and the crop is expected to cater to the increasing bast fiber demand for high-quality textiles. Selling hemp and hemp products is legal in the U.S., as numerous states have legalized its farming. Moreover, Canada has focused on hemp cultivation for seed production, as it is widely used in the food and cosmetics industries. Recently, it also started to utilize this crop for building materials, insulation, and composites. China exports hemp fibers to Europe and Northern America.

Since the legalization of industrial hemp cultivation, a surge in the industrial hemp market size is being witnessed. In the U.S., hemp with less than 0.3% THC has been removed from the controlled substances definition. Similarly, the cultivation of cannabis varieties with less than 0.2% THC is legal in the European Union. The Chinese National Anti-Drug Committee also announced in 2019 that CBD is not a controlled drug anymore and removed it from the narcotic drugs list. Further, cannabis with 0.3% or less THC can be grown in certain regions of China.

Read More: Industrial Hemp Market Analysis and Demand Forecast Report

The largest revenue share, of 35%, in the industrial hemp market was captured by Europe in 2021. The cultivation of industrial hemp is legal in several European countries as it is approved by their government authorities. The presence of a large consumer base in the region is also resulting in the growing demand for hemp in the food beverages, dietary supplements, and personal care industries. Moreover, the demand for industrial hemp-based skincare products is significant in the region as they provide a good organic alternative to products laden with chemicals.

Hence, the legalization of hemp cultivation has brought a boom in the demand for it across industries.