MERCOSUR: Hemp Tow Market 2025

Hemp Tow Market Size in MERCOSUR

The MERCOSUR hemp tow market rose markedly to $X in 2022, increasing by 5.7% against the previous year. Overall, consumption, however, saw a slight curtailment. Over the period under review, the market attained the maximum level at $X in 2012; however, from 2013 to 2022, consumption stood at a somewhat lower figure.

Hemp Tow Production in MERCOSUR

In value terms, hemp tow production reached $X in 2022 estimated in export price. Over the period under review, production, however, recorded a slight slump. The growth pace was the most rapid in 2020 with an increase of 71%. The level of production peaked at $X in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

The country with the largest volume of hemp tow production was Chile (X tons), comprising approx. 99% of total volume.

In Chile, hemp tow production remained relatively stable over the period from 2012-2022.

In 2022, the average yield of hemp tow in MERCOSUR amounted to X kg per ha, standing approx. at the previous year. In general, the yield, however, recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2015 when the yield increased by 1.8% against the previous year. The level of yield peaked at X kg per ha in 2016; however, from 2017 to 2022, the yield stood at a somewhat lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, approx. X ha of hemp tow were harvested in MERCOSUR; almost unchanged from the previous year. In general, the harvested area, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 when the harvested area increased by 0.9%. Over the period under review, the harvested area dedicated to hemp tow production reached the maximum at X ha in 2012; however, from 2013 to 2022, the harvested area remained at a lower figure.

Hemp Tow Exports

Exports in MERCOSUR

In 2022, after two years of decline, there was significant decline in shipments abroad of hemp tow, when their volume decreased by -49.9% to X kg. Overall, exports, however, showed significant growth. The growth pace was the most rapid in 2013 when exports increased by 16,275% against the previous year. Over the period under review, the exports attained the maximum at X tons in 2015; however, from 2016 to 2022, the exports stood at a somewhat lower figure.

In value terms, hemp tow exports contracted dramatically to $X in 2022. In general, exports, however, recorded a significant expansion. The most prominent rate of growth was recorded in 2013 with an increase of 5,337%. The level of export peaked at $X in 2014; however, from 2015 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

The shipments of the one major exporters of hemp tow, namely Colombia, represented more than two-thirds of total export.

Colombia was also the fastest-growing in terms of the hemp tow exports, with a CAGR of -49.9% from 2012 to 2022. From 2012 to 2022, the share of Colombia increased by +99 percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Colombia ($X) also remains the largest hemp tow supplier in MERCOSUR.

From 2012 to 2022, the average annual growth rate of value in Colombia totaled -50.0%.

Export Prices by Country

The export price in MERCOSUR stood at $X per ton in 2022, flattening at the previous year. Over the period under review, the export price showed a pronounced descent. The pace of growth appeared the most rapid in 2014 when the export price increased by 3.3%. Over the period under review, the export prices attained the peak figure at $X per ton in 2017; however, from 2018 to 2022, the export prices remained at a lower figure.

As there is only one major export destination, the average price level is determined by prices for Colombia.

From 2012 to 2022, the rate of growth in terms of prices for Colombia amounted to -0.2% per year.

Hemp Tow Imports

Imports in MERCOSUR

In 2022, imports of hemp tow in MERCOSUR surged to X tons, increasing by 57% on 2021. In general, imports recorded a moderate expansion. The volume of import peaked at X tons in 2013; however, from 2014 to 2022, imports stood at a somewhat lower figure.

In value terms, hemp tow imports skyrocketed to $X in 2022. Over the period under review, imports posted a buoyant increase. The pace of growth appeared the most rapid in 2019 when imports increased by 109%. The level of import peaked in 2022 and is likely to see steady growth in the immediate term.

Imports by Country

Paraguay represented the major importer of hemp tow in MERCOSUR, with the volume of imports finishing at X tons, which was near 53% of total imports in 2022. Ecuador (X tons) took a 27% share (based on physical terms) of total imports, which put it in second place, followed by Peru (14%) and Chile (5.1%).

From 2012 to 2022, the biggest increases were recorded for Ecuador (with a CAGR of +114.8%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the largest hemp tow importing markets in MERCOSUR were Paraguay ($X), Peru ($X) and Ecuador ($X), together comprising 92% of total imports.

In terms of the main importing countries, Ecuador, with a CAGR of +92.2%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the import price in MERCOSUR amounted to $X per ton, with a decrease of -1.6% against the previous year. Over the period under review, the import price, however, enjoyed a perceptible increase. The most prominent rate of growth was recorded in 2020 when the import price increased by 68%. As a result, import price reached the peak level of $X per ton. From 2021 to 2022, the import prices remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Peru ($X per ton), while Ecuador ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Peru (+15.7%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform