Middle East: Hemp Tow Market 2024

Hemp Tow Market Size in the Middle East

In 2022, the Middle Eastern hemp tow market decreased by -32.1% to $X for the first time since 2018, thus ending a three-year rising trend. Over the period under review, consumption, however, enjoyed a resilient increase. Over the period under review, the market attained the peak level at $X in 2021, and then contracted sharply in the following year.

Hemp Tow Production in the Middle East

In value terms, hemp tow production reached $X in 2022 estimated in export price. The total production indicated a temperate increase from 2012 to 2022: its value increased at an average annual rate of +4.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -1.0% against 2020 indices. The pace of growth appeared the most rapid in 2019 with an increase of 10% against the previous year. Over the period under review, production hit record highs at $X in 2020; however, from 2021 to 2022, production stood at a somewhat lower figure.

Iran (X tons) constituted the country with the largest volume of hemp tow production, comprising approx. 80% of total volume. Moreover, hemp tow production in Iran exceeded the figures recorded by the second-largest producer, the United Arab Emirates (X tons), tenfold. The third position in this ranking was held by Lebanon (X tons), with a 4.4% share.

In Iran, hemp tow production remained relatively stable over the period from 2012-2022. In the other countries, the average annual rates were as follows: the United Arab Emirates (+1.0% per year) and Lebanon (+3.3% per year).

The average hemp tow yield was estimated at X tons per ha in 2022, almost unchanged from 2021 figures. In general, the yield, however, saw a abrupt decline. The most prominent rate of growth was recorded in 2018 when the yield increased by 2%. The level of yield peaked at X tons per ha in 2020; however, from 2021 to 2022, the yield remained at a 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 the Middle East; therefore, remained relatively stable against the previous year's figure. Overall, the harvested area saw a buoyant expansion. The most prominent rate of growth was recorded in 2021 when the harvested area increased by 100%. The level of harvested area peaked in 2022 and is likely to see steady growth in years to come.

Hemp Tow Exports

Exports in the Middle East

After four years of growth, overseas shipments of hemp tow decreased by -11.3% to X tons in 2022. In general, exports, however, showed a measured increase. The most prominent rate of growth was recorded in 2019 with an increase of 323%. The volume of export peaked at X tons in 2021, and then reduced in the following year.

In value terms, hemp tow exports expanded rapidly to $X in 2022. Over the period under review, exports, however, recorded a strong expansion. The most prominent rate of growth was recorded in 2019 when exports increased by 523%. Over the period under review, the exports attained the peak figure at $X in 2020; however, from 2021 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

The United Arab Emirates represented the main exporter of hemp tow in the Middle East, with the volume of exports accounting for X tons, which was approx. 78% of total exports in 2022. It was distantly followed by Turkey (X tons), mixing up an 18% share of total exports. Iran (X tons) followed a long way behind the leaders.

The United Arab Emirates was also the fastest-growing in terms of the hemp tow exports, with a CAGR of +22.1% from 2012 to 2022. At the same time, Turkey (+18.6%) displayed positive paces of growth. By contrast, Iran (-17.2%) illustrated a downward trend over the same period. While the share of the United Arab Emirates (+64 p.p.) and Turkey (+14 p.p.) increased significantly in terms of the total exports from 2012-2022, the share of Iran (-33.3 p.p.) displayed negative dynamics.

In value terms, the United Arab Emirates ($X) remains the largest hemp tow supplier in the Middle East, comprising 77% of total exports. The second position in the ranking was taken by Turkey ($X), with a 19% share of total exports.

In the United Arab Emirates, hemp tow exports increased at an average annual rate of +20.3% over the period from 2012-2022. The remaining exporting countries recorded the following average annual rates of exports growth: Turkey (+14.1% per year) and Iran (-11.5% per year).

Export Prices by Country

The export price in the Middle East stood at $X per ton in 2022, jumping by 27% against the previous year. Export price indicated a resilient expansion from 2012 to 2022: its price increased at an average annual rate of +6.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, hemp tow export price decreased by -15.8% against 2019 indices. The growth pace was the most rapid in 2019 an increase of 47% against the previous year. As a result, the export price attained the peak level of $X per ton. From 2020 to 2022, the export prices remained at a lower figure.

Average prices varied noticeably amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Turkey ($X per ton), while Iran ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Iran (+6.9%), while the other leaders experienced a decline in the export price figures.

Hemp Tow Imports

Imports in the Middle East

In 2022, overseas purchases of hemp tow decreased by -27.2% to X tons for the first time since 2018, thus ending a three-year rising trend. In general, imports, however, recorded a significant expansion. The growth pace was the most rapid in 2016 when imports increased by 527% against the previous year. The volume of import peaked at X tons in 2021, and then reduced rapidly in the following year.

In value terms, hemp tow imports dropped sharply to $X in 2022. Overall, imports, however, enjoyed significant growth. The growth pace was the most rapid in 2016 when imports increased by 266% against the previous year. The level of import peaked at $X in 2021, and then reduced rapidly in the following year.

Imports by Country

Turkey prevails in imports structure, recording X tons, which was near 90% of total imports in 2022. It was distantly followed by Israel (X tons), creating a 9.1% share of total imports.

Turkey was also the fastest-growing in terms of the hemp tow imports, with a CAGR of +79.8% from 2012 to 2022. At the same time, Israel (+52.6%) displayed positive paces of growth. From 2012 to 2022, the share of Turkey and Israel increased by +87 and +7.3 percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Turkey ($X) constitutes the largest market for imported hemp tow in the Middle East, comprising 89% of total imports. The second position in the ranking was held by Israel ($X), with a 9.1% share of total imports.

From 2012 to 2022, the average annual growth rate of value in Turkey amounted to +82.3%.

Import Prices by Country

In 2022, the import price in the Middle East amounted to $X per ton, which is down by -8% against the previous year. In general, the import price, however, continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2020 when the import price increased by 89% against the previous year. The level of import peaked at $X per ton in 2014; however, from 2015 to 2022, import prices remained at a lower figure.

Average prices varied noticeably amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Israel ($X per ton), while Turkey totaled $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Turkey (+1.4%).

Source: IndexBox Platform

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