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Market Overview
According to Fortune Business Insight, The global industrial hemp market size was valued at USD 9.47 billion in 2024. The market is projected to grow from USD 11.42 billion in 2025 to USD 47.82 billion by 2032, exhibiting a CAGR of 22.70% during the forecast period.
Industrial hemp is a botanical class of Cannabis sativa defined by its THC content. It is witnessing increasing demand across diverse applications such as food and beverages, dietary supplements, textiles, and pharmaceuticals. While the COVID-19 pandemic caused downturns in retail, it triggered demand for hemp cannabidiol (CBD) oil products to manage anxiety and stress. Thirty countries have legalized the medical use of cannabis, further accelerating product adoption.
Major Players Profiled in the Market Report:
• Fresh Hemp Foods Ltd. (Canada)
• IND HEMP, LLC. (U.S.)
• Blue Sky Hemp Ventures (Canada)
• Panda Biotech, LLC (U.S.)
• Hemp Republic (India)
• South Hemp Tecno Srl (Italy)
• HEMP FACTORY (Germany)
• East Mesa (U.S.)
• DON Processing, Inc. (U.S.)
• HempFlax Group B.V. (Netherlands)
Segments
Rising Affordability to Accelerate the Demand for Conventional Hemp
Based on source, the market is segmented into organic and conventional. The conventional segment dominated the market in 2022 due to its affordability and less stringent cultivation guidelines compared to organic hemp. However, organic products are expected to witness significant demand due to consumer preferences for clean-label and eco-friendly products.
Increasing Application Scope to Drive Hemp Fiber Sales
By type, the market is segmented into hemp seed, hemp seed oil, hemp fiber, and others. The hemp fiber segment held a major market share in 2024, driven by high demand in textile, automotive, and paper industries due to its strength and thermal insulation properties. Hemp seed oil is also growing considerably due to its pharmaceutical benefits.
Increasing Adoption of Sustainable Practices to Boost Product Sales in Textiles Sector
By application, the market is segmented into food, beverages, personal care & cosmetics, textiles, pharmaceuticals, and others. The textile segment dominated the market in 2024 as the fashion industry shifts toward sustainable materials. The food segment is also growing due to the popularity of veganism and plant-based proteins, while the cosmetics industry is increasingly using hemp oil as a natural ingredient.
Source: https://www.fortunebusinessinsights.com/industrial-hemp-market-102459
Report Coverage
The report offers:
• Detailed analysis of leading companies, material categories, and distribution channels.
• Insights into market trends and key industry developments.
• Comprehensive analysis of market sizing and growth rates for all segments.
• Evaluation of drivers, restraints, and regulatory scenarios.
• Regional analysis including production statistics and key country highlights.
Drivers & Restraints
Increasing Legalization and Rising Government Support
The market is driven by the increasing legalization of industrial hemp cultivation and favorable government policies. For instance, the European Parliament increased the THC level for industrial hemp crops from 0.2% to 0.3%, and Minnesota legalized certain hemp-derived THC edibles. Additionally, rising international trade and partnerships, such as the deal between InterCure Ltd. and Binske, are creating significant growth opportunities.
However, Complex Regulations impede market growth. Regulatory guidelines regarding CBD and THC vary widely by state and country, making compliance difficult. For example, the FDA has declined to regulate CBD as a dietary supplement, creating uncertainty in the U.S. market.
Regional Insights
Europe Dominated the Industrial Hemp Market
Europe dominated the market with a share of 31.04% in 2024. France is the largest producer in the region, accounting for more than 70% of production, followed by the Netherlands. The region's growth is supported by a significant increase in land used for hemp cultivation.
The U.S. market is projected to reach USD 8.38 billion by 2032, driven by widespread applications in textiles, construction, and pharmaceuticals. In Asia Pacific, China leads as one of the largest producers and exporters, while South Africa is emerging as a key player in the African market due to favorable climate and regulatory support.
Industrial Hemp Market Future Growth:
The market is poised for explosive growth driven by the introduction of innovative products such as Lime Hemp Concrete (LHC), fiber-board insulation, and hemp wool in the construction industry. As the need for carbon-neutral construction materials rises, hemp's ability to sequester carbon makes it highly attractive. Government programs and subsidies are expected to support the expansion of processing facilities. Furthermore, the shift toward sustainable fashion and plant-based diets will continue to fuel demand for hemp fibers and seeds globally.
Competitive Landscape
Key Players Focus on Product Launches to Stay Competitive
Market participants are adopting strategies such as new product launches, M&A, and distribution channel expansion to gain a competitive edge. Companies are actively launching refined hemp products and forming international alliances to access better raw materials and expand their global reach.
Key Industry Development
• February 2024: Hempz introduced two new body moisturizers developed from 100% pure hemp seed oil.
• January 2023: Bast Fibre Technologies Inc. acquired Lumberton Cellulose LLC to expand natural fiber processing in North America.
• December 2022: InterCure Ltd. entered a licensing agreement with Binske to distribute products in Australia, the U.K., Israel, and Germany.
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