Industrial Hemp Market Is Expected To Reach USD 46.41 Billion By 2032

The global industrial hemp market size was worth around USD 8.29 billion in 2023 and is predicted to grow to around USD 46.41 billion by 2032, with a compound annual growth rate (CAGR) of roughly 21.1% between 2024 and 2032.

Industrial hemp refers to a variety of the cannabis sativa plant explicitly grown for industrial and commercial applications. The market is dedicated to the cultivation, processing, and distribution of cannabis sativa plants containing less than 0.3% THC for commercial applications. These crops provide raw materials for textiles, construction materials, food products, personal care items, and CBD extracts. Industrial hemp serves multiple industries with sustainable alternatives to conventional materials, offering superior environmental benefits through carbon sequestration and reduced resource consumption. Advanced processing technologies now enable more efficient extraction and refinement of hemp derivatives.

Browse the full “Industrial Hemp Market By Product (Seeds, Fiber, And Shivs), By Application (Animal Care, Textiles, Automotive, Furniture, Food & Beverages, Paper, Construction Materials, Personal Care, And Others), And By Region - Global And Regional Industry Overview, market Intelligence, Comprehensive Analysis, Historical Data, And Forecasts 2024–2032” Report at https://www.zionmarketresearch.com/report/industrial-hemp-market

The increasing legalization of hemp cultivation and growing awareness of sustainability benefits drive market growth.

Market Growth Factors

Several factors contribute to the expansion of the industrial hemp market.

• Favorable regulatory changes: Legislation globally has legitimized hemp cultivation, opening new market opportunities.
• Sustainability initiatives: Hemp's environmental benefits align with corporate and consumer sustainability goals across industries.
• CBD product expansion: Expanding applications for cannabidiol in health, wellness, and pharmaceutical sectors drive demand for hemp cultivation.

Restraints

• Regulatory uncertainty: Despite progress, inconsistent regulations across regions create operational challenges for market participants.
• Limited processing infrastructure: Underdeveloped processing capabilities in emerging markets restrict value chain optimization.

Industrial Hemp Market: Report Scope

Market Segmentation

The industrial hemp market can be segmented based on type, application, and region.

Based on type, the industrial hemp market is segregated into hemp seed, hemp fiber, and hemp oil. Hemp oil (including CBD) is expected to lead the market due to increasing applications in pharmaceuticals, nutraceuticals, and personal care products, supported by growing consumer awareness of potential health benefits.

On the basis of application, the industrial hemp industry is classified mainly into food and beverages, textiles, personal care, pharmaceuticals, and construction. The food and beverages segment leads the market as hemp-derived products gain popularity with nutrient-rich superfoods containing essential fatty acids, proteins, and minerals.

North America leads the global industrial hemp market, driven by favorable legislation, including the U.S. Farm Bill, which legalized hemp cultivation and expanded its commercial use. The region benefits from advanced agricultural techniques and well-established supply chains, enabling large-scale production and efficient processing. Strong consumer demand for hemp-based products, such as textiles, bioplastics, CBD, and nutritional supplements, continues to fuel market growth.

An increase in research and innovation investment has led to the development of high-yield hemp strains and improved extraction technologies. Canada remains a key player with extensive hemp cultivation, while the U.S. market is rapidly expanding with the entry of new producers and brands. Supportive policies and growing applications across multiple industries solidify North America's dominant industrial hemp market position.

Key Market Players

Some major players operating in the global industrial hemp market include:

• Industrial Hemp Manufacturing
• Hemp-E
• Mollerup
• Valley Bio Limited
• Hemp Inc.
• Bombay Hemp Company
• UAB Agropro
• Hemp Oil Canada
• HempFlax
• Hemp Food Australia

Recent Developments

• In 2024, Canopy Growth launched an innovative hemp-based biodegradable packaging solution targeting the food and beverage industry, addressing the growing demand for sustainable packaging alternatives.
• In 2024, Hempco Food and Fiber introduced a patented decortication technology that significantly increases fiber yield and quality, enhancing economic viability for industrial applications.

This report segments the global industrial hemp market into:

Global Industrial Hemp Market: Type Analysis

• Seeds
• Fiber
• Shivs

Global Industrial Hemp Market: Application Analysis

• Animal Care
• Textiles
• Automotive
• Furniture
• Food and Beverages
• Paper
• Construction Materials
• Personal Care
• Others

Global Industrial Hemp Market: Regional Analysis

• North America
  • The U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• The Middle East and Africa

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