The global industrial hemp market size is expected to reach USD 10.6 billion by 2025, according to this new report by Grand View Research. The market is anticipated to expand at a CAGR of 14.0% during the forecast period.

Industrial hemp is an agricultural commodity. There is a rising demand for oil in food and beverages, which is contributing to growth -- specifically, a growing awareness of the dietary advantages of hempseed oil. This is expected to continue to fuel demand.

The personal care industry accounted for 16.2% of the revenue in 2017 owing to high consumption of the crop oil in personal hygiene products including soap, shampoo, body lotions, and hair care products.

A growing population and rising disposable income are expected to result in an increased demand for high-quality cosmetics, personal care products, protein supplements, and other health food products. These factors are expected to be key driving factors for the market over the projected period.

Increasing R&D activities to develop perfect agronomy and new genetics of crops to obtain high yield and improved product quality have a positive impact on hemp production. Companies in the market operate with fiber treatment technology to make fibers water repellant, fire retardant, absorptive, and super soft, which is expected to drive demand.

Major players in the industry focus on R&D activities to develop new varieties of the crop, full crop utilization, processing methods, and advanced technologies used for processing.