The global industrial hemp market revenue was valued at USD 9.47 billion in 2024 and is expected to expand from USD 11.42 billion in 2025 to USD 47.82 billion by 2032, reflecting a CAGR of 22.70% during the forecast period. In 2024, Europe dominated the market, accounting for a 31.04% share.
The U.S. industrial hemp market is also projected to witness significant growth, reaching an estimated USD 8.38 billion by 2032. This expansion is fueled by the rising adoption of hemp-based products across various industries, including pharmaceuticals, food & beverages, textiles, cosmetics, and more.
Industrial hemp, classified as a botanical variant of Cannabis sativa, is primarily distinguished by its low tetrahydrocannabinol (THC) content. Its versatility and growing demand in multiple applications, such as food and beverages, dietary supplements, textiles, and functional foods, continue to drive market growth.
Information Source:https://www.fortunebusinessinsights.com/industrial-hemp-market-102459
Segmentation
Conventional Segment to Dominate Due to Widespread Industry Adoption
Based on the source, the market is segmented into organic and conventional. The conventional segment is expected to experience significant growth over the coming years, driven by the increasing deployment of industrial hemp across various industries, including textiles, automotive, and paper manufacturing.
Hemp Fiber Segment to Witness Lucrative Growth in Textile and Automotive Sectors
By type, the market is categorized into hemp seed oil, hemp seed, hemp fiber, and others. The hemp fiber segment is projected to see substantial expansion due to its rising utilization in textiles, automotive materials, and paper production. The fiber’s sustainability, durability, and versatility make it an attractive material for these industries.
Textile Segment to Lead with Growing Sustainable Practices Adoption
Based on application, the market is divided into pharmaceuticals, personal care & cosmetics, beverages, food (dietary and functional foods), textiles, and others. The textile segment held a notable market share and is anticipated to grow significantly during the forecast period. This growth is largely driven by rising consumer awareness of climate change and the increasing demand for sustainable textile materials.
By geography, the industrial hemp market is analyzed across Asia Pacific, Europe, North America, South America, and the Middle East & Africa.
Report Coverage
The report offers an in-depth analysis of key market drivers, restraints, and industry expansion factors. It also highlights emerging market trends and assesses the impact of the COVID-19 pandemic on product sales. Additionally, the report includes insights into key strategies adopted by major industry players to maintain a competitive advantage.
Drivers and Restraints
Market Expansion Fueled by Rising International Trade of Hemp Products
The industrial hemp market is experiencing significant growth due to the increasing global demand for hemp-based products across diverse applications such as food, pharmaceuticals, and textiles. Additionally, the rising demand for hemp fiber processing in various countries is further contributing to market expansion.
However, the market’s growth may be hindered by stringent regulations surrounding hemp cultivation, sale, and marketing, which vary across regions.
Regional Insights
Europe Leads the Market with Increasing Consumption of Hemp Products
Europe is expected to maintain its dominant position in the industrial hemp market, driven by high consumer demand and increasing applications of hemp-based products. Meanwhile, Asia Pacific is anticipated to experience considerable growth, primarily due to the widespread use of hemp in paper and textile manufacturing.
Competitive Landscape
Key Players Focus on Strategic Collaborations to Strengthen Market Presence
Leading companies in the industrial hemp market are adopting various strategic initiatives to expand their market footprint. These include collaborations, partnerships, mergers, and acquisitions, which help companies enhance their capabilities and strengthen their global presence.
List of Key Players Mentioned in the 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)
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Key Industry Development
- February 2023 – Alcott Enterprises, an IT consulting and managed services company, announced a collaboration with Flourish Software. The partnership focuses on delivering enhanced implementation services, technical support, and integration solutions for hemp-related businesses.