Industrial Hemp Market Size and Share Analysis - Growth Trends and Forecast Report 2024-2032

Industrial Hemp Market Trends & Summary

Industrial Hemp Market is estimated to grow around US$ 25.33 billion by 2032, up from US$ 6.03 billion in 2023, with a compound annual growth rate of 17.29% between 2024 and 2032. This can be attributed to increased product demand from the application industries including food & beverage, personal care and animal care amongst others across the world.

The report Industrial Hemp Market & Forecast covers by Type (Seeds, Oil, Fibers, and Others), Sources (Conventional, Organic), by Application (Textiles, Personal Care, Food & Beverages, Animal Care, Paper, Automotive, Construction Materials, Furniture), by Region (North America, Europe, Asia Pacific, and the Latin America, Middle East & Africa) Companies Analysis 2024-2032.

Industrial Hemp Market Outlooks

Hemp is a sub-type of the cannabis plant species known specifically for industrial purposes. It has relatively low amounts of THC which is the psycho active component present in marijuana. Hemp differs from marijuana in the sense that its main uses are based on its stout fibers, its seeds, as well as its oil. This tree has been grown for many years for different uses such as in cloth industry, as building materials, in production of bio fuels, and even as food. Due to fastest rate of growth, multi usability, ecofriendly ability of absorbing CO2, and ability of fixing soil nutrients, it is fast becoming a preferred crop for many sustainable industries.

In the world industrial hemp has many uses across different industries. Today it is used in the textile industry it possesses strong fibers that are befitting the fabrication of durable fabrics. Hemp seeds are incorporated to food products because of their nutritional values and is rich in omega 3 and omega 6 essential fatty acids. Cosmetic and beauty products use hemp oil and the construction industry also use hempcrete, an environmentally friendly concrete. Also, for the use of bioplastics and biofuel application, hemp is also being considered.

Growth Driver of the Industrial Hemp Market

Rising Demand for Sustainable Products

A rise in demand for sustainable and environmental products also drives the industrial hemp market as a major factor. Hemp is an annual plant that has the potential of yielding eco-friendly products like biodegradable products, textiles, and biofuels instead of the harmful environment products. This is because in the current world, industries are shifting their operations and business to adopting sustainable approaches and have included the use of products with low carbon footprint and hemp-based products have resulted as a beneficiary. This change is backed by alterations in the legal requirements and raising consciousness of the beneficial effects of more expansion of hemp use in many industries including fashion and construction and packaging.

Expansion of Hemp-Related Legislation

Increased legalization of industrial hemp in many areas has greatly enhanced its market due to availability of legal production of hemp. In the United States for instance, through the amendments in the 2018 Farm Bill, hemp was legalized meaning farmers were free to cultivate it. This has resulted in enactment of laws that has encouraged hemp farming and establishment of processing plants. With increasing number of states adopting friendly laws, the market is gradually expanding for products derived from the hemp plant like the CBD oil and industrial uses. These changes in legal structures are friendly to investment and subsequently enhance market growth which in turn fuels this market’s expansion.

Versatile Applications Across Industries

Industrial hemp has several uses which make it to be useful hence making its market to expand. It can be used in textile, concrete, in the food industry especially as preservatives, in health supplements among others. Hemp raw material has qualities that can allow it to serve different sectors, strength, durability, and low impact on the environment. More and more enterprises urge the shift toward hemp-based products in their work due to the discovery of new applications for the material. Such flexibility calls Rubana different types of actors in a market and spurs unprecedented draw in product differentiation hence encouraging potential intending actors and stimulating the market growth.

Industrial Hemp Market Challenges

Regulatory Uncertainty and Legal Restrictions

Despite the industrial hemp industry gaining recognition, regulatory issues vary across regions. Hemp remains classified alongside controlled substances in many areas. Even where markets have been liberalized, it can be problematic because of tough licensing requirements, high THC levels, and requirements to comply. All these aspects affect the ability of companies to effectively operate. As a result, this has negatively impacted market development and discourages investment in industrial hemp.

Limited Processing Infrastructure and High Production Costs

The industrial hemp market is constrained by the absence of sophisticated processing facilities and supply chain inefficiencies. The extraction of hemp-based products requires specialized equipment and technology, which results in high production costs. Transportation and storage also require strict conditions to maintain product quality. Farmers and manufacturers face challenges in scaling operations efficiently, which limits the growth potential of the industry despite increasing demand.

Industrial Hemp Seeds Market

Hemp seeds are rich in nutrients and versatile, becoming increasingly popular in food, cosmetics, and health supplements. Protein, essential fatty acids, and antioxidants make hemp seeds a prime ingredient in plant-based diets and functional foods. The demand for hemp seeds is increasing because consumers are becoming increasingly aware of the need for sustainable and organic sources of food. Oil extraction and animal feed use also contribute to market expansion. With continued research and technological advancements in hemp cultivation, the industrial hemp seeds market is expected to grow steadily globally. In March 2024, Coast Smokes partnered with Willie's Remedy to launch a new line of hemp smokeables featuring CBD vapes named Elevate, Chill, and Slumber.

Industrial Hemp Oil Market

Hemp oil has been widely employed in cosmetics, pharmaceuticals, and dietary supplements due to the richness of nutrition and therapeutic attributes. It possesses essential fatty acids, omega-3 and omega-6. Therefore, this oil is perfect for skin treatments, heart benefits, and curbing inflammation in the body. The increasing awareness of natural alternatives in personal care and wellness boosts the sales of hemp oil. Furthermore, the legalization of hemp-based products in several countries has increased production and distribution channels, further expanding the industrial hemp oil market. In October 2024, Aurora Cannabis Inc. introduced a new line of medical cannabis oils in Australia.

Industrial Organic Hemp Market

The demand for organic hemp products is growing as consumers prioritize sustainability and chemical-free agriculture. Organic hemp is grown without synthetic pesticides or fertilizers, which makes it more attractive for food, personal care, and medicinal purposes. The companies are strictly following organic certification processes, emphasizing eco-friendly and non-GMO farming practices. The organic hemp market is likely to grow with the global regulatory policies that promote sustainable agricultural methods. More research into the benefits of organic hemp fuels the growth of the market, encouraging investment in clean-label and organic-certified hemp-based products. In March 2022, Lotus Organics+ launched its "Hemp Youth Glow" line, including the Blissful Serum and Sleep Creme. The market is expected to grow significantly through 2033, driven by the increased use of organic hemp in textiles and fashion.

Industrial Hemp Personal Care Market

Hemp-based personal care products are gaining popularity due to their natural moisturizing, anti-inflammatory, and antioxidant properties. Hemp oil is used in skincare, haircare, and cosmetics, hydrating and nourishing without synthetic chemicals. There has been a shift toward sustainable and plant-based beauty products, thus increasing demand for hemp-infused lotions, shampoos, and serums. Companies are taking advantage of the benefits of hemp by formulating innovative, organic beauty solutions. The growing trend for clean beauty and natural wellness is fueling the growth of the industrial hemp personal care market. In February 2024, Hempz introduced two new products: Beauty Actives Vanilla Lux Herbal Body Moisturizer with Niacinamide and Beauty Actives Tea Tree Herbal Body Moisturizer with Tea Tree Oil, both containing 100% pure hemp seed oil.

Industrial Hemp Food & Beverages Market

Hemp-based food and beverages are an emerging key segment in the plant-based nutrition industry. Hemp protein, hemp milk, and hemp energy bars, which offer critical nutrients to health-conscious consumers with vegan requirements, are essential elements in the diet. Functional food applications benefit greatly from hemp seeds due to their high fiber and protein content. The growth trend of sustainable superfoods also is a boon to hemp-infused beverages, which include teas and smoothies. As awareness increases about plant-based diets, this industrial hemp food and beverage market is bound to grow rapidly. May 2023 brought the launch of Hemperella's hemp-based superfood range, including its protein powder, bars, seeds, oils, salad toppers, and flour.

United States Industrial Hemp Market

The expansion of the United States is witnessed in the increasing market for hemp products particularly in food and beverages; cosmetic; and health and nutrients markets. Another advantage of the market in this region is the high level of agricultural technologies, rising interest in studying hemp and the density of key players in the market. Consumer awareness and their demand for the products that are friendly to the environment also play an added bonus on the market. Subsequent to the 2018 Farm Bill that made legal the growth of industrial hemp in the United States, farming and processing activities shot up significantly. Some states that have been leading in the growing of hemp include Colorado and Kentucky where the plants are used for various purposes which include; extraction of CBD oil. A well-developed and favorable base and increasing funding for hemp-based advancements define the situation in the United States.

Canada industrial hemp market

The market for industrial hemp in Canada is also growing due to favourable laws and the country’s established agricultural base. This country legalised cultivation of industrial hemp in the late 1990s, and it today remains one of the biggest growers and processors of hemp seeds. The Canadian Industrial Hemp Promotion-Research Agency Proclamation (Proclamation) will enable the PRA to compile a levies order as well as the power of setting and collecting a levy with regard to interprovincial, imported, and exported farm products Consequently, it will also assist in researching new and more efficient production techniques as well as enhancing the quality of the products; advertise and promote the consumption of the farm products both locally and internationally. Canadian companies more recently extend their research on possible uses including biodegradable plastics and hempcrete, making Canada as a crucial player in the expanding North America hemp industry.

China Industrial Hemp Market

Well-developed hemp cultivation for textiles, paper, food products and so on is prevalent in china which is the largest producer of hemp in the world. The authorities encourage hemp cultivation mentioning it as one of the nontraditional crops that can be cultivated by farmers. Sweeter has also attributed the development of processing technology to the improvement of China’s status in this market.

Australia industrial hemp Market

Australia is relatively new to the market of industrial hemp production after the legalization of hemp in the year 2017. Australian farmers are gradually turning to hemp in many uses such as extraction of CBD, food uses and biocomposites. The urge to consume natural and sustainable products has made consumers opt to spend on research and development and has increased innovation in the industry. The Asia Pacific industrial hemp market is expected to have a rapid growth in the near future as both the countries are advancing into the using the hemp in different sectors.

Germany Industrial Hemp Market

Germany is Europe's largest market for industrial hemp, mainly influenced by positive legal frameworks and awareness of hemp-related products among German consumers. Industrial hemp is now a well-settled market in Germany where the main uses are textiles, bioplastics, construction material, and health products. High demand for sustainable and organic alternatives fuels the adoption of hemp in food, cosmetics, and pharmaceuticals. Government support for eco-friendly agriculture and hemp-derived products that are legalized increases market growth. Germany has been at the forefront of advanced research facilities and innovative hemp processing. Jan. 2025, Aurora Cannabis Inc. introduced IndiMed, its first medical cannabis grown in Germany, from its EU-GMP facility in Leuna to address the country's expanding patient base.

Mexican Industrial Hemp Market

Mexico's industrial hemp market is gaining ground as a result of the changing regulatory framework and increasing investment in sustainable industries. With Mexico looking forward to the legalization of cannabis, hemp-based textiles, food, and wellness products are gaining popularity. The country has a good climate for large-scale hemp cultivation and attracts businesses into hemp fiber, CBD production, and eco-friendly alternatives. Other government initiatives into industrial hemp are expected to grow the market for economic development and job creation. With growing interest in natural and organic products from consumers, the hemp industry of Mexico is in for significant growth in the future years. In Oct. 2024, the Mexico affiliate of Premier Graphene Inc., HGI Industrial Technologies, entered a partnership with one of only two firms holding a Mexican hemp license, Santa Rosa Green Seeds, to push the country's hemp market forward.

In October 2024, Aurora Cannabis Inc. launched high-end medical cannabis oils, both THC and hemp-derived, into 25 states and D.C. in a partnership with MedReleaf Australia.

In February 2024, RISE Dispensaries opened its 15th Florida location and 92nd nationwide, expanding access to its Incredibles brand products. The first customers received special promotions.

 In March 2024, RPI researchers received US$1.5M to develop hemp-based insulated siding, creating a durable, low-carbon product to enhance energy efficiency and reduce emissions.

Industrial Hemp Company News

In June 2024, Hempalta Corp announced a new biochar product derived from industrial hemp and shared corporate updates, including a name change for its processing division, operations expansion, and stock option granting.

In August 2024, AgTech company Hempalta launched biochar derived from hemp to complement its carbon credit platform.

In June 2024, Curaleaf Holdings, Inc. announced the launch of a new line of hemp-derived THC products under the Select and Zero Proof brands.

Industrial Hemp Market Segments

By Products –Market will be divided into four Viewpoints

1. Seeds
2. Stalks
3. Fibres
4. Others

By Sources - Market will divided into 2 Viewpoints

1. Conventional
2. Organic

By Application – Market will divided into 9 Viewpoints:-

1. Textiles
2. Personal Care
3. Food & Beverages
4. Animal Care
5. Paper
6. Automotive
7. Construction Materials
8. Furniture
9. Others

By Country – Market will be divided into 25 Country

North America

1. United States
2. Canada

Europe

1. France
2. Germany
3. Italy
4. Spain
5. United Kingdom
6. Belgium
7. Netherlands
8. Turkey

Asia Pacific

1. China
2. Japan
3. India
4. Australia
5. South Korea
6. Thailand
7. Malaysia
8. Indonesia
9. New Zealand

Latin America

1. Brazil
2. Mexico
3. Argentina

Middle East & Africa

1. South Africa
2. Saudi Arabia
3. United Arab Emirates

All the key players have been covered from 5 Viewpoints:

• Key Person
• Company overview
• Sales Analysis
• Product Portfolio
• Recent Development & Strategies
• Company Analysis

Company Analysis

1. Marijuana Company of America Inc.
2. American Cannabis Company, Inc.
3. Ecofibre Limited
4. Aurora Cannabis
5. Agropur
6. Darling Ingredients Inc.

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