In 2024, the global industrial hemp market reached a valuation of USD 9.47 billion. Projections indicate growth to USD 11.42 billion in 2025 and a surge to USD 47.82 billion by 2032, reflecting a compound annual growth rate (CAGR) of 22.70% over the forecast period. Europe led the market in 2024, accounting for a 31.04% share. Meanwhile, the U.S. market is anticipated to expand significantly, potentially reaching USD 8.38 billion by 2032, driven by increasing utilization across industries such as pharmaceuticals, food and beverage, textiles, and cosmetics.
Industrial hemp, a variety of the Cannabis sativa plant, is distinguished by its low tetrahydrocannabinol (THC) concentration. Its wide adaptability and growing application in areas like food and beverages, dietary supplements, and textiles are playing a key role in propelling market growth.
Currently, more than 30 countries—including Argentina, Australia, Brazil, Canada, Colombia, Denmark, Germany, Greece, Ireland, Italy, Mexico, and the Netherlands—have legalized cannabis for medical purposes. The growing interest in hemp-derived cannabidiol (CBD) oil for addressing health concerns such as anxiety, stress, and chronic pain is also contributing to its broader use.
Information Source: https://www.fortunebusinessinsights.com/industrial-hemp-market-102459
COVID-19 Impact
Temporary Setbacks, Lasting Growth Potential
The onset of the pandemic resulted in temporary shutdowns and long-term closures across multiple industries. However, the pharmaceutical sector remained largely operational, with ongoing activity among hemp-related retailers, processors, and cultivators. Supply chain issues, especially from China, created hurdles. Still, the increased prevalence of mental health challenges during this time drove up demand for hemp-based therapeutic products.
Market Segmentation
By Source: Conventional Hemp Leads Owing to Versatile Applications
The market is categorized into conventional and organic hemp. Conventional hemp is projected to maintain dominance due to its extensive use in industries such as automotive, textiles, and paper.
By Type: Rising Demand for Hemp Fiber
Product types include hemp fiber, hemp seeds, hemp seed oil, and others. Hemp fiber is expected to see significant growth due to its expanding role in the textile and automotive sectors.
By Application: Textile Industry Poised for Growth Amid Sustainability Trends
Applications span pharmaceuticals, cosmetics, beverages, and functional foods. The textile segment is projected to lead, driven by increasing consumer preference for sustainable materials and heightened environmental awareness.
Regional Analysis
Europe Holds Market Leadership
Europe is forecasted to continue its lead in the industrial hemp market due to high consumer demand for hemp-based products. Meanwhile, the Asia Pacific region is expected to witness robust growth, particularly with the rising use of hemp in paper and textile manufacturing.
Market Highlights
The report offers insights into major growth factors and restraints while assessing the pandemic’s impact on demand patterns. It also reviews emerging trends and strategic approaches adopted by key players.
Key Market Drivers and Challenges
Drivers: Expanding Applications and International Trade
The growing incorporation of hemp into food, health, and textile products is accelerating market development. Moreover, international trade in hemp fiber continues to expand.
Challenges: Regulatory Constraints
Stringent regulations surrounding the cultivation, sale, and distribution of hemp in some regions may restrict overall market growth.
Competitive Landscape
Collaborative Strategies Fueling Industry Growth
Leading companies are actively pursuing mergers, partnerships, and collaborations to improve market reach and strengthen their presence on a global scale.
Major 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)
Tariff Impact Analysis for Industrial Hemp Market: https://www.fortunebusinessinsights.com/enquiry/request-sample-us-tariff/industrial-hemp-market-102459
Recent Developments
February 2023 – Alcott Enterprises, an IT consulting and managed services provider, formed a partnership with Flourish Software. This collaboration is intended to improve integration and support services for companies operating within the hemp industry.