In 2024, the global industrial hemp market was estimated at USD 9.47 billion. It is projected to rise to USD 11.42 billion in 2025 and is anticipated to reach USD 47.82 billion by 2032, growing at a robust CAGR of 22.70% during the forecast period. Europe accounted for the largest share of 31.04% in 2024. Simultaneously, the U.S. market is expected to experience notable growth, with projections indicating a value of USD 8.38 billion by 2032, driven by rising demand across pharmaceuticals, food and beverages, personal care, and textiles.
Industrial hemp, a variant of the Cannabis sativa plant, is known for its low THC content and versatile usage. Its expanding role in areas such as supplements, textiles, and food products is a major catalyst for market growth.
Currently, over 30 countries—including Australia, Brazil, Canada, Germany, Italy, Mexico, and the Netherlands—have legalized cannabis for medicinal purposes. The growing popularity of hemp-derived CBD oil, often used to manage anxiety, chronic pain, and stress, is further accelerating market adoption.
Information Source: https://www.fortunebusinessinsights.com/industrial-hemp-market-102459
Market Segmentation
The market is segmented by source into conventional and organic hemp, with conventional hemp maintaining dominance due to its widespread use across industries such as paper, automotive, and textiles. By type, the market includes hemp seeds, hemp seed oil, hemp fiber, and others, with hemp fiber poised for notable expansion driven by its growing application in sustainable textiles and automotive components. In terms of application, the market covers cosmetics, pharmaceuticals, food and beverages, and textiles, with the textile industry leading the segment as consumer demand for eco-friendly and innovative green materials continues to rise.
Regional Insights
Europe to Retain Market Leadership
Europe is expected to maintain its dominant position, supported by growing awareness and acceptance of hemp-based products. Meanwhile, the Asia Pacific region is projected to grow rapidly, with increased hemp usage in textiles and paper manufacturing contributing to regional expansion.
Report Highlights
The report provides an in-depth evaluation of market dynamics, including growth drivers, challenges, and post-COVID recovery trends. It also delves into product innovation and business strategies adopted by leading companies to maintain competitive advantage.
Key Drivers and Challenges
The market is being driven by the growing diversification of hemp applications across wellness, nutrition, and apparel industries, along with the expanding global trade of hemp raw materials. However, despite its strong growth potential, legal restrictions related to the production, transportation, and sale of hemp in certain regions may pose significant challenges to broader market adoption.
Competitive Landscape
Mergers and Partnerships Strengthen Market Position
Industry leaders are actively pursuing strategic partnerships, joint ventures, and acquisitions to increase global reach and solidify their presence in the market.
Key Market Players
- 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)
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Recent Developments
- February 2023: Alcott Enterprises, an IT service provider, formed a partnership with Flourish Software to improve integrated services and business solutions tailored for hemp industry operators.
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