The global industrial hemp market size was valued at USD 6.2 Billion in 2024 and is projected to reach USD 20.9 Billion by 2033, growing at a CAGR of 14.5% during the forecast period 2025-2033. Asia-Pacific dominates with over 35.0% market share in 2024. Legislative changes favoring hemp cultivation, recognition of environmental benefits, and expanding applications in textiles, bioplastics, and wellness are major growth drivers.
The Industrial Hemp Market Size is expanding rapidly as global demand rises for sustainable raw materials across textiles, food and beverages, personal care, construction, and pharmaceuticals. Industrial hemp’s versatility—ranging from fibers and seeds to cannabidiol (CBD)—is driving adoption in both industrial and consumer applications. Supportive government regulations, growing awareness of hemp’s environmental benefits, and advancements in cultivation and processing technologies are further accelerating market growth. Additionally, the shift toward eco-friendly products and the expanding CBD segment are expected to significantly boost the Industrial Hemp Market Size in the coming years.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Industrial Hemp Market Key Takeaways
- Current Market Size: USD 6.2 Billion in 2024
- CAGR: 14.5%
- Forecast Period: 2025-2033
- Asia-Pacific region holds the largest market share exceeding 35.0% in 2024.
- The United States accounted for 88.80% share of the North America market in 2024.
- Hemp seeds represent the largest segment by type, holding approximately 29.9% of the market in 2024.
- The food and beverages segment leads application with around 61.9% market share in 2024.
- The conventional source segment leads due to established cultivation methods and cost advantages.
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Market Growth Factors
The industrial hemp market is primarily driven by the rising demand for sustainable raw materials across various industries. Hemp’s versatility as a resource for textiles, bioplastics, and construction material is gaining momentum amid increasing eco-consciousness worldwide. Low environmental impact and efficient resource utilization underpin the legalization of hemp cultivation in several regions. For instance, legislative changes like the 2018 Farm Bill in the U.S. and the 2024 amendment in Himachal Pradesh, India, promote hemp cultivation for medicinal, industrial, and scientific purposes, suggesting robust future market expansion.
The growing interest in hemp-derived CBD products further stimulates growth. Research and development focusing on wellness and medical applications support the rising demand for cannabidiol. The U.S. industrial hemp market valued at USD 291 Million in 2023, with open-grown hemp covering 27,680 acres, demonstrates the increasing commercial scale. The rising consumer awareness of hemp's sustainability and multifunctionality complements growing acceptance in sectors like textiles, bioplastics, and construction.
Sustainability is a fundamental factor bolstering growth. Hemp’s rapid growth, minimal pesticide needs, and ability to sequester carbon effectively position it as an ecofriendly alternative to traditional crops like cotton. Hemp biomass converts to renewable products such as bioplastics, building materials, and biofuels, helping decrease reliance on fossil fuels, which account for 85% of global energy. The emphasis on reducing carbon footprints and environmental impact drives adoption across industries, accelerating the industrial hemp market globally.
Market Segmentation
Analysis by Type:
- Hemp Seed: Largest segment with around 29.9% market share in 2024; prized for nutritional value, including essential fatty acids, protein, and minerals; used in food, beverages, animal feed, and cosmetics.
- Hemp Oil: Not provided in source.
- Hemp Fiber: Not provided in source.
- Others: Not provided in source.
Analysis by Source:
- Conventional: Leads due to established cultivation practices, lower production costs, and wide application in textiles, construction, food, and cosmetics.
- Organic: Not provided in source.
Analysis by Application:
- Food and Beverages: Leading segment with about 61.9% market share in 2024; driven by demand for healthy, natural, and nutrition-rich products including hemp-based milk, protein powders, bars, cooking oils, and hemp-infused beverages.
- Textiles: Not provided in source.
- Personal Care Products: Not provided in source.
- Pharmaceuticals: Not provided in source.
- Others: Not provided in source.
Regional Insights
Asia-Pacific is the dominant region in the industrial hemp market, accounting for over 35.0% market share in 2024. This leadership is credited to extensive hemp cultivation and traditional use in countries such as China and India. Favorable climatic conditions and a long history of hemp usage in textiles, food, and traditional medicines support growth. China is a major contributor through production and exports. Industrialization and growing awareness of hemp’s health and environmental benefits continue to drive market expansion in the region.
Recent Developments & News
- October 2024: Rare Earth Global, a UK-based industrial hemp startup, raised EUR 1 Million (USD 1.3 Million) in a pre-seed funding round led by a UK family office, including impact fund and angel investors.
- August 2024: Volkswagen partnered with German startup Revoltech GmbH to develop sustainable materials from 100% bio-based industrial hemp for Volkswagen models starting in 2028.
- February 2023: Hemp Inc announced the sale of its largest industrial product shipment for oil and gas well drilling sectors, with 120,000 pounds of DrillWallTM transported.
- September 2022: Ecofibre Limited launched the Green II Gold CBD-based skincare range for professional spas and salons.
- May 2020: Aurora Cannabis signed a contract to acquire all issued membership interests of Reliva, LLC.
Key Players
- Aurora Cannabis Inc.
- Blue Sky Hemp Ventures Ltd.
- Ecofibre Limited
- Fresh Hemp Foods Ltd.
- Hemp Inc
- HempFlax Group B.V.
- Hempro International GmbH
- Ind Hemp, LLC
- MH medical hemp GmbH
- Panda Biotech, LLC
- Parkland Industrial Hemp Growers Co-op. Ltd.
- South Hemp
- Valley Bio Limited
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