As new and sustainable methods for tackling the world’s problems gains more and more traction, hemp has become more of a center of focus. Hemp grown for fiber has gained popularity in recent years thanks to research from organizations and individuals from around the world. Hemp fiber can be used to create a number of goods, including clothing. A new report has been released, projecting the growth of the hemp clothing market for the next upcoming years.
According to BusinessWire, “the worldwide hemp clothing industry is expected to reach $10.1 Billion by 2028”. This industry has been fueled by an uptick in demand for sustainable and eco-friendly clothing items. Reasons for individuals backing this niche sector of the hemp industry vary, but all result in the growth of the industry as a whole.
In a similar report by Data Bridge Market Research, the global hemp clothing market is projected to register a CAGR (Compound Annual Growth Rate) “of 32.0% during the forecast period of 2022-2029.” Their research showed similar variables to the BusinessWire report, suggesting solid growth for the clothing market due to demands for sustainable and eco-friendly alternatives to modern clothing options across various demographics.
Several factors for why growth is to be expected were cited within both reports, including low cost and rising demand for natural fabrics. Hemp grown for fiber has become a rising niche in recent years, but demand is still outpacing supply. Not only can hemp fiber be grown for clothing production, but for the production of paper, plastic alternatives, and even housing material alternatives.
According to the BusinessWire report, “The organic agriculture movement, which emphasizes cultivation and processing without the use of synthetic or chemical pesticides or genetically modified or radioactive plants, includes organic products as a component. This ensures that the environment is not damaged too much.”
However, there are several restraining factors in the market to be aware of that are already impacting the hemp clothing market. At the top of the list is the current supply of hemp fiber unable to meet demand. At the time of this writing, the hemp industry is pivoting away from the majority of hemp being grown for CBD extraction and diversifying into niche sectors such as fiber and minor cannabinoid production.
At the time of this writing, a shirt made of hemp fiber can easily cost 1.5 to 2.0 times more than a shirt made of cotton or synthetic materials. Reasons for this can be summed up in supply chain limitations and processing capabilities. Brands that produce hemp clothing are still fairly new and may not have the resources available to meet the demand for hemp clothing products.
For hemp clothing brands, the expected growth will bring several factors that will influence the cost of production and the overall end product. The first is the supply of hemp being grown for fiber. It will be important for hemp clothing brands to connect with suppliers who will scale to meet the projected demand. If the hemp fiber is not grown, then the cost of materials will rise and bottleneck the process, raising the cost of the end product and risk not being able to meet the ever-growing demand from consumers. Second is the plan for brand scaling. Will your brand be able to meet the demands of your target consumer?
However one looks at it, the hemp clothing niche of the industry is projected to have ample growth in the next several years. Based on current trends, there is already an existing demand for hemp clothing that the current supply chain is struggling to satisfy. Various reports, including those from BusinessWire and Data Bridge Market Research, all show accelerated growth that the industry will have to pivot to meet.