Vietnam Hemp Products Market Outlook to 2028

Vietnam Hemp Products Market Overview

The Vietnam hemp products market has experienced notable growth, this is reflected by global hemp product market reaching a valuation of USD 7.02 billion in 2023. This growth is driven by increasing consumer awareness about the health benefits of hemp products, expanding applications in various industries, and supportive government regulations promoting the cultivation and processing of hemp.

Key players in the Vietnam Hemp Products market include Hemp Vietnam, Nam Ha Corporation, Saigon Hemp and Greenfield Ventures These companies play a crucial role in shaping the market dynamics through innovation, quality products, and strategic partnerships and are popular because of enlarged consumer awareness of their brands.

In 2023, a survey conducted by the Vietnam Health Association found that half of the respondents are aware of hemp's nutritional benefits, up by 30% since 2020. This growing awareness, coupled with the introduction of new hemp-based health supplements, has significantly boosted market demand in Vietnam.

Key cities such as Hanoi and Haiphong dominate the hemp products market in Vietnam, accounting for more than one-third of the market share in 2023. This dominance is attributed to the region's favorable climatic conditions for hemp cultivation, well-established supply chains, and proximity to major export hubs. These cities play a significant role due to their advanced infrastructure and strategic locations.

Vietnam Hemp Products Market Segmentation

By Product Type: The Vietnam Hemp Products market is segmented by product type into hemp oil, hemp fiber and hemp seeds. In 2023, hemp oil held the dominant market share this dominance is due to the high demand for hemp oil in the food and beverage industry and its extensive use in skincare products. The nutritional benefits of hemp oil, rich in essential fatty acids, have also driven its popularity among health-conscious consumers.

By Application: The Vietnam Hemp Products market is also segmented by application into food and beverage, textile, personal care and pharmaceutical. The food and beverage segment dominated the in 2023, this increasing incorporation of hemp products into health foods, snacks, and beverages is seen due to their nutritional benefits which has driven this segment's growth. Additionally, the trend of plant-based diets has further propelled the demand for hemp-based food products.

By Region: The Vietnam Hemp Products market segmentation by region includes North, South, East and West. In 2023, the Northern region dominates due to the region's favorable climatic conditions for hemp cultivation, well-established supply chains, and proximity to major export hubs contribute to its dominance. Additionally, government support for hemp farming in the North has further bolstered the region's market position.

Vietnam Hemp Products Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Hemp Vietnam Co., Ltd

2015

Hanoi

Nam Ha Corporation

2005

Da Nang

Saigon Hemp

2012

Ho Chi Minh City

Greenfield Ventures

2018

Hanoi

Kilomet109 IN Hanoi: Kilomet109 collaborates with two communities of H’mong women, the Black H’mong of Lào Cai and the Blue H’mong of Hoà Bình, to grow hemp and weave a range of special fabrics for use in our collections. They currently work with these communities to harvest 3 areas that cover 5.4 hectares of land.

Nam Ha Corporation's Technological Collaboration: Nam Ha Corporation entered into a technological collaboration with a Canadian firm to enhance hemp fiber processing technology. This collaboration, supported by significant investments, aims to improve processing efficiency and product quality, positioning Nam Ha Corporation a well-known brand in Vietnam as a leading player in the hemp fiber market.

Vietnam Hemp Products Industry Analysis

Vietnam Hemp Products Market Growth Drivers

Increasing Demand for Hemp-Based Food Products: Vietnam saw a significant rise for hemp-based food products as consumers are more aware of food standards like ISO, and actively seek for them. Therefore, the growth is attributed to the increasing awareness of the nutritional benefits of hemp seeds and oil among health-conscious consumers. In 2024, it is projected that the sales of these products will further increase driven by marketing campaigns and expanding product availability in Vietnam supermarkets and health food stores.

Growth in the Personal Care and Cosmetics Industry: The personal care and cosmetics industry in Vietnam is rapidly adopting hemp-based ingredients due to their beneficial properties. Ananta Hemp Works, a company based in Vietnam, offers a wide range of personal care and cosmetic products containing hemp, such as hemp body butter, hemp face serums, and hemp soap bars

Rise in Hemp-Based Textile Products: The increasing demand for sustainable and eco-friendly textiles, including hemp fabric, driven by growing consumer awareness and preferences. The global hemp fabric market size was valued at $12.8 billion in 2023 and is expected to continue growing rapidly. Vietnamese consumers are increasingly getting aware of such products therefore seeking the textile.

Vietnam Hemp Products Market Challenges

Lack of Processing Infrastructure: Despite the growth in hemp cultivation, Vietnam still lacks adequate processing facilities to handle the increasing production volume. The processing capacity was only able to accommodate not more than half of the total hemp harvest, leading to wastage and inefficiencies. This shortfall in infrastructure is a significant challenge that needs to be addressed to ensure the industry's sustainable growth.

High Production Costs: The cost of hemp production in Vietnam remains high due to the need for imported seeds and advanced farming equipment. In 2023, the average cost of producing one kilogram of hemp was USD 3.50, which is higher than in neighboring countries. These high production costs can limit the competitiveness of Vietnamese hemp products in the international market.

Vietnam Hemp Products Market Government Initiatives

Export Promotion Programs: Vietnamese government to promote investment in various sectors, including high-tech industries, supporting industries, agriculture, and renewable energy. Vietnamese government launched export promotion programs to support the international marketing of hemp products, with a budget of USD 1.5 million in 2023.

Local Brand Recognition: The Vietnam is promoting national brands, industry brands, and product brands through initiatives like the selection of Vietnamese national brands in 2024. They aim the global visibility and competitiveness of Vietnamese hemp products. The programs aim to boost the international marketing and trade relations for Vietnamese hemp in key markets like Europe and North America.

Vietnam Hemp Products Market Future Outlook

Vietnam Hemp Products market is projected to continue its upward trajectory. Factors such as expanding applications of hemp in various industries, continued regulatory support, and increasing investment in research and development will contribute to this growth.

Future Market Trends

Expansion of Hemp Cultivation Areas: The area dedicated to hemp cultivation is expected to grow further, this expansion will be supported by ongoing government incentives and advancements in cultivation techniques, ensuring a steady supply of high-quality hemp for various industrial applications like textiles, bioplastics, and construction materials, catering to diverse market demands.

Increased Investment in Research and Development: Investment in research and development for hemp-based products is expected to rise significantly over the next five years. The annual R&D expenditure will be focusing on developing new applications for hemp and improving existing products. This investment will drive innovation and expand the market potential for hemp products in Vietnam.
Please Note: It will take 5-7 business days to complete the report upon order confirmation