Global Hemp Milk Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Hemp Milk Market Analysis

Hemp milk is a popular plant-based milk, which is made by mixing water and seeds from the hemp plant. It has an earthy and nutty flavour and is rich in high-quality plant protein and healthy minerals. It is dairy-free, making it suitable for vegans, lactose-intolerant individuals, and those seeking plant-based nutrition options.

The rising vegan population and the shift towards plant-based dairy alternatives are some of the major factors contributing to the growth of the hemp milk market. The market is also being driven by the growing concerns about animal welfare and the increasing cases of lactose intolerance among the population. Hemp milk has multiple potential health benefits, such as maintaining heart health, boosting brain health, supporting the skin’s response to inflammation, and strengthening the immune system, which is driving its demand. It is free of soy, lactose, and gluten and thus, is gaining popularity among people who need to avoid these components.

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Hemp Milk Market Trends

Innovation In Flavours and Formulations

Flavoured hemp milk can appeal to both adults and children, making it a more versatile choice for different occasions. Hemp milk naturally contains several nutrients such as omega fatty acids, protein, and minerals enriching it with additional nutrients such as calcium, vitamin D, and vitamin B12 can address specific dietary needs and concerns and contribute to the hemp milk market value.

Manufacturers are expanding their product lines by launching flavoured options such as vanilla, chocolate, and strawberry, along with formulations which contain additional nutrients. Companies in the hemp milk sector are diversifying their products to cater to a wider range of consumer preferences. By using flavours such as vanilla, chocolate, and strawberry, they are responding to the growing consumer demand for variety and enhanced taste experiences in plant-based milk.

Clean-Label and Organic Products

A crucial trend of hemp milk market is that consumers are showing a growing preference for minimal processing and increased transparency in sourcing and production practices. For instance, in April 2023, JOI, a plant milk brand based in the U.S., expanded its product lineup by launching a vegan milk concentrate made from organic hemp hearts. This introduction represents the brand's initial entrance into hemp-based vegan milk alternatives. By selecting organic hemp hearts as the primary ingredient, the company emphasises its commitment to offering plant-based, sustainable, and healthy choices for its customers.

As per a study conducted on clean-label products in Asian countries such as India, Indonesia, Japan, Singapore, and South Korea, there was a rising trend toward GMO-free products. In 2023, India launched around 5000 clean-label products, including clean-label hemp milk, which accounted for around 13% of the global share.

Industry News

Dec 2023

Nourish You, a superfood company, announced the successful acquisition of One Good, a vegan Dairy company based in Bengaluru.

Apr 2023

JOI, a U.S.-based plant milk brand introduced its vegan milk concentrate derived from organic hemp heart which marks the company's foray into hemp-based vegan milk products.

Opportunities in Hemp Milk Market

The popularity of keto, paleo, and other low-carb diets has led to increased demand for unsweetened hemp milk varieties. Unsweetened hemp milk caters to health-conscious consumers in the market who are wary of added sugars in their diet. With rising awareness about the negative health impacts of excessive sugar consumption, such as obesity, diabetes, and heart disease, there is a rising demand for unsweetened alternatives that can also boost the hemp milk market revenue.

These alternatives are becoming popular in the keto, low-carb, or diabetic diets, where sugar intake must be minimised. For instance, an average 2000-calorie keto diet contains around 165 grams of fat, 40 grams of carbohydrates, and 75 grams of protein, whereas a low-carb diet may contain around 20 to 57 grams of carbohydrates for daily consumption, which can appeal to the consumers looking to reduce their sugar intake.

Hemp Milk Market Restraints

Hemp cultivation is only legalised in some countries and regions and this inconsistency in regulations can affect the sales of products. For instance, in 2018, Uttarakhand and Uttar Pradesh states in India legalised the cultivation of hemp. However, its cultivation may not be legal in some other states which can affect its sales and distribution across the country and further affect hemp milk demand growth. 

There are also stringent regulations imposed on the sale of legal hemp which may pose a challenge to the market players. For instance, As per the Drugs and Cosmetics Act in India, Legal hemp must contain no more than 0.3 per cent THC, and if the market players fail to comply with this, they may be unable to sell their hemp-based products such as milk.

Market Dynamics

Favourable government initiatives can promote the growth of hemp milk through policies and regulations. For instance, in 2018, the U.S. Agriculture Improvement Act approved the production of hemp and removed hemp from the list of Controlled Substances. This Act allowed the farmers in the country to sell hemp-based products such as milk just like other products. Moreover, as per Canada's Industrial Hemp Regulations, the government supports the growth of hemp-based food and beverage products such as hemp milk, which can further impact the hemp milk demand forecast.

Another prominent initiative in the market is the European Union’s Green Deal and CAP (Common Agricultural Policy). Under this policy, the region is promoting sustainable agricultural practices, which may also include hemp cultivation. The hemp plant is known for its low environmental footprint which can encourage more farmers to grow this crop.

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Hemp Milk Industry Segmentation

“Hemp Milk Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Based on variants, the market is segmented into:

• Flavoured
• Unflavoured

On the basis of type, the market is divided into:

• Sweetened
• Unsweetened

Based on category, the market is classified into:

• Organic
• Conventional

On the basis of distribution channel, the market is segmented into:

• Supermarkets/Hypermarkets
• Convenience Stores
• Speciality Stores
• Online Retail

Based on region, the market is classified into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Hemp Milk Market Share

By Variants Insights

Flavoured varieties account for a substantial share of the market owing to the growing consumer preference towards flavoured hemp milk, which contains options such as vanilla and chocolate. These flavours are known for their more robust taste and attractiveness, particularly among consumers shifting to plant-based milk alternatives.

This trend towards enhanced flavours has also led to an increase in demand for sweetened and flavoured hemp milk, establishing it as the leading category in the hemp milk market share. While unflavoured hemp milk remains favoured by those who value simplicity and a milder taste, the flavoured segment is experiencing rapid growth due to its wider appeal among consumers.

By Type Insights

Sweetened hemp milk maintains its dominance in the market due to its growing appeal among consumers who prefer a sweet taste in their beverages. As per the hemp milk market dynamics and trends, sweetened hemp milk often appeals to consumers looking for a tasty, direct replacement for traditional dairy milk, which naturally contains sugar (lactose). The added sugars or sweeteners enhance the flavour, making it more palatable for those new to plant-based milk or those who prefer a sweeter taste in their beverages and cereals. It can also be more appealing for use in desserts, baking, and certain recipes that require a bit of sweetness, making it a versatile choice for both drinking and cooking.

By Category Insights

Conventional hemp milk currently holds the largest market share compared to its organic version. Although there is a growing demand for organic products due to health and environmental concerns, the conventional hemp milk segment remains more accessible and affordable for a wide range of consumers.

However, the organic segment is also expected to see consistent growth as health-conscious consumers increasingly opt for organic products to avoid pesticides and other chemicals, further boosting the demand of hemp milk market.

By Distribution Channel Insights

Supermarkets/Hypermarkets account for a major market share due to the easy accessibility and availability of a broad range of product varieties. With the expansion of supermarkets/hypermarkets, hemp milk is becoming increasingly accessible to consumers. The rising sales through these channels can be due to the improved living standards of people and their inclination towards healthy convenience foods, which boosts the hemp milk demand.

These channels offer a wide range of brands and product varieties, including different flavours and formulations of hemp milk. This variety attracts consumers looking to compare and choose products which best meet their preferences and dietary needs. These distribution channels frequently engage in promotional activities, such as discounts, loyalty programs, and in-store displays, which can increase the visibility and appeal of hemp milk to consumers.

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Hemp Milk Market Regional Insights

North America Hemp Milk Market Analysis

The increasing vegan population and the government initiatives towards boosting the production of hemp are contributing to the market growth in North America. For instance, a 2023 survey suggested that around 1 to 4% of Americans were vegan and this number is only expected to go up.

As per the hemp milk industry analysis, the growing awareness about the health benefits of hemp milk and the high consumer spending power is providing a further impetus to the regional market expansion. With the growing demand, supermarkets, health food stores, and online retailers in North America are expanding their assortments of hemp milk, including flavoured and fortified options. This increased availability, along with a wider variety of product choices, has made hemp milk more appealing to a broad audience.

Europe Hemp Milk Market Growth

Within Europe, the market in Germany has seen a significant increase, supported by increased hemp cultivation and the number of companies that are authorised to produce hemp. In the country, the popularity of hemp-based food is rapidly growing, leading to its increased availability in German health food stores and supermarkets to meet this demand, which can boost the hemp milk industry revenue. Of the hemp-based products introduced in the German market in the past few years, a majority of the products were foods. As of 2022, the production of hemp increased from 97,130 tonnes to 179,020 tonnes in the region, boosting the sales of hemp milk.

Asia Pacific Hemp Milk Market Drivers

The emergence of e-commerce in the region ensures the immediate availability and home delivery of hemp milk, enhancing the buying experience of consumers. Online retailers in the market can serve customers beyond geographical limitations, reaching a wider audience that includes consumers in areas where hemp milk might not be readily available through physical stores, and contribute to the growth of the hemp milk industry.

Meanwhile, the large-scale production of hemp in countries like China is resulting in the availability of raw materials in abundance, which is invigorating the market expansion for hemp milk in the Asia Pacific region.

Middle East and Africa Hemp Milk Market Trends

The rising popularity of plant-based diets in the MEA region amid growing health-consciousness is contributing to the market growth. The high omega-3 and omega-6 content of hemp milk is boosting its appeal among consumers with the regulations in the region expected to relax in the coming years which can create ample hemp milk market opportunities. 

The progressive view of South Africa on the consumption of cannabis is expected to contribute to the rising appeal of hemp milk, especially among consumers looking for dairy alternatives. The favourable climate of Africa has the potential to make the region a leading producer and exporter of industrial hemp and other hemp-based products. 

Latin America Hemp Milk Market Dynamics

Countries like Brazil, Argentina, and Chile are driving the growth of the regional market due to their favourable climate for hemp cultivation. The legalisation of hemp in several countries in the region is expected to gradually boost the sales of hemp milk. For instance, Paraguay legalised medical hemp in 2017 and industrial hemp in 2019, which opened new opportunities for hemp milk in the region.

In 2021, Colombia made significant changes in its hemp regulations through the export of dried flowers, which can further promote hemp milk market expansion.

Innovative Hemp Milk Startups

Startups in the market are readily emphasising the environmental benefits of hemp farming. Hemp is known to be a sustainable crop, requiring only basic resources like water and pesticides which is far less compared to traditional dairy farming, which makes it an attractive option for eco-conscious consumers. Additionally, this focus on sustainability aligns with current trends in the plant-based food sector, where consumers are increasingly mindful of the environmental impact of their food choices.

Elmhurst 1925

Elmhurst, originally founded as a dairy company, has successfully transformed itself to focus on plant-based alternatives, now offering hemp milk in its product lineup in the hemp milk industry. The brand is well-known for its dedication to clean ingredients and minimal processing, appealing to health-conscious consumers. Elmhurst has further established itself as a leader in producing high-quality, sustainable plant-based milk alternatives, including hemp milk.

Tempt Hemp Milk.

Tempt, a startup based in the United States, specialises in developing hemp-based food and beverage products, particularly its popular hemp milk varieties. The brand focuses on the nutritional benefits of hemp, such as omega-3 and omega-6 fatty acids, and offers a range of flavours, including original and vanilla. Tempt also promotes sustainability and health, aligning with the growing consumer demand for plant-based and eco-friendly options.

Competitive Landscape

The market players are launching novel organic products to gain a competitive edge in the hemp milk market. Companies are launching innovative varieties of hemp milk by combining it with other plant-based ingredients like oats to attract a broader audience. These products are generally organic, vegan, and free from common allergens like dairy, soy, and nuts, which appeals to a large consumer base. Furthermore, many brands provide fortified hemp milk options, enhanced with essential vitamins and minerals, including omega-3 and omega-6 fatty acids, to increase their nutritional value.

Key Industry Players

Hudson River Foods

Founded in 2005 and based in New York, United States, the company offers baking mixes, hemp-based products, gourmet bakery items, and powdered supplements.

Pacific Foods of Oregon INC

Founded in 1987 and based in Oregon, United States, the company in the hemp milk market is known for its products such as organic broths, soups, plant-based beverages, and meals, among others.

Good Mylk Co

Founded in 2018 and based in Los Angeles, United States, its product portfolio includes mainly organic, nutritional plant-based milk, which appeals to health-conscious consumers.

Good Hemp Food

Founded in 1998 and based in North Devon, England, the company is mainly known for its hemp-based food and drink products.

Other major players in the hemp milk market are Living Harvest Foods, Inc., Organic Hemp Milk Australia, Milkadamia, and Nutriops, S.L, among others. The key players are actively engaging in various strategies to cater to the growing demand for plant-based milk alternatives.

Recent Developments

Mar 2023

Planet Based Foods, a company known for its innovative hemp-based meat products, is expanding its product line with the launch of a new organic, hemp-based vegan ice cream.

Feb 2022

Gaia's Farming Co. announced the launch of two novel products made by the blend of oat milk and hemp.