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Industrial Hemp Market

Industrial Hemp Market

The market for Industrial Hemp was estimated at $6.4 billion in 2024; it is anticipated to increase to $15.3 billion by 2030, with projections indicating growth to around $31.7 billion by 2035.

Report ID:DS1802632
Author:Debadatta Patel - Senior Consultant
Published Date:July 2025
Datatree
Life Science
Pharmaceutical
Industrial Hemp
Share
Report Summary
Table of Contents
Methodology
Market Data

Global Industrial Hemp Market Outlook

Revenue, 2024

$6.4B

Forecast, 2034

$27.4B

CAGR, 2024 - 2034

15.6%
The Industrial Hemp industry revenue is expected to be around $7.4 billion in 2025 and expected to showcase growth with 15.6% CAGR between 2025 and 2034. The burgeoning significance of Industrial Hemp in the global market is primarily driven by its multifaceted applications across diverse industries, including textiles, construction, food & beverages, and pharmaceuticals. The rising awareness about its environmental benefits, coupled with the progressive legalization of hemp cultivation in various regions, is further propelling its relevance in today's market. The versatility of Industrial Hemp, coupled with its sustainability attributes, has positioned it as a key player in the transition towards a greener and more sustainable economy.

Industrial Hemp is characterized by its high strength and durability, making it an ideal raw material for a plethora of applications. It is extensively used in the production of biofuels, bioplastics, and building materials, contributing significantly to the reduction of carbon footprint. Additionally, the nutritional profile of hemp seeds, rich in protein, fiber, and healthy fatty acids, has led to its increasing incorporation in health and wellness products.

Industrial Hemp market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034

Market Key Insights

  • The Industrial Hemp market is projected to grow from $6.4 billion in 2024 to $27.4 billion in 2034. This represents a CAGR of 15.6%, reflecting rising demand across Textiles Production, Nutritional Supplements and Construction Materials.

  • Hemp Inc, CV Sciences, American Hemp are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Canada are the top markets within the Industrial Hemp market and are expected to observe the growth CAGR of 14.0% to 18.7% between 2024 and 2030.
  • Emerging markets including Uruguay, Thailand and Malawi are expected to observe highest growth with CAGR ranging between 10.9% to 16.4%.

  • Transition like Shift towards Sustainable Agriculture is expected to add $2.9 billion to the Industrial Hemp market growth by 2030

  • The Industrial Hemp market is set to add $21.0 billion between 2024 and 2034, with manufacturer targeting Neurological Disorders & Cardiovascular Health Therapeutic Applications projected to gain a larger market share.
  • With Rising demand for eco-friendly products, and Advancements in hemp cultivation technologies, Industrial Hemp market to expand 326% between 2024 and 2034.
industrial hemp market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Industrial Hemp

The Industrial Hemp market can also leverage technological innovations in hemp processing. The development and adoption of advanced extraction and processing technologies can also significantly enhance the quality and yield of hemp products. This is also driven by the increasing need for efficiency and quality in the hemp industry.

Growth Opportunities in North America and Asia Pacific

North America Outlook

North America, primarily led by the United States, is a significant player in the Industrial Hemp market. The regions dominance can be attributed to the progressive legalization of hemp cultivation and the expanding use of Industrial Hemp in various sectors such as textiles, construction, food, and beverages. The market is further propelled by the growing consumer awareness about the benefits of hemp-based products and the increasing investment in hemp research and development. However, the competition in this region is intense, with major companies like Hemp Inc., and CV Sciences Inc., striving to expand their market share through innovative product launches and strategic partnerships.

Asia Pacific Outlook

The Asia Pacific region, particularly China, is a rapidly growing market for Industrial Hemp. The regions growth is driven by the long-standing tradition of hemp cultivation and the escalating demand for hemp-based products in textiles, health and wellness, and the automotive industry. Despite the challenges posed by regulatory uncertainties, the market is expected to witness significant growth due to the increasing investment in hemp cultivation and processing technologies. Key players in this region, such as Hemp & Wood Co., Ltd and Yunnan Industrial Hemp Inc., are focusing on expanding their production capabilities and exploring new applications of Industrial Hemp to gain a competitive edge.

Market Dynamics and Supply Chain

01

Driver: Rising Demand for Eco-friendly Products, and Legalization of Hemp Cultivation

The increasing consumer awareness and demand for eco-friendly products is also a significant for the Industrial Hemp market. Industrial Hemp is also a renewable resource that can also be used to produce a wide range of products such as biofuels, bioplastics, and building materials. These products are also sustainable alternatives to their conventional counterparts, thereby reducing the environmental impact and carbon footprint. This trend towards sustainability is also expected to fuel the growth of the Industrial Hemp market, particularly in the production of eco-friendly industrial goods. The legalization of hemp cultivation in various countries across the globe is also another key for the Industrial Hemp market. The changing legal landscape has also opened up new opportunities for farmers and businesses to invest in hemp cultivation and its downstream applications.
The advancements in hemp cultivation technologies have also made it possible to grow Industrial Hemp in various climatic conditions, thereby increasing its production. The development of genetically modified hemp strains that are also resistant to pests and diseases, and the use of modern farming techniques such as hydroponics and aeroponics, have also significantly increased the yield and quality of Industrial Hemp. This technological progress is also expected to drive the growth of the Industrial Hemp market, especially in the agriculture and textile industries.
02

Restraint: Regulatory Constraints

Despite the growing acceptance of industrial hemp, regulatory constraints remain a significant hurdle. The legal ambiguity surrounding hemp cultivation in many countries can impede market growth. For instance, while the 2018 Farm Bill in the United States federally legalized the cultivation of industrial hemp, the legislation varies from state to state, creating a fragmented and uncertain regulatory landscape. This complexity can deter potential entrants, disrupt supply chains, and limit the expansion of existing market players.
03

Opportunity: Industrial Hemp in Textile Industry and Strategic Collaborations for Industrial Hemp Research

The textile industry is an untapped segment for the application of Industrial Hemp. The inherent strength and durability of hemp fibers make them an excellent choice for the production of sustainable and eco-friendly textiles. This lies in the growing consumer demand for environmentally friendly products, and the textileindustry'sneed to reduce its carbon footprint.
Strategic collaborations between research institutions and hemp companies can drive growth in the Industrial Hemp market. These partnerships can facilitate the development of new hemp strains with improved characteristics and applications, thereby expanding the potential uses of Industrial Hemp. This is driven by the need for continuous innovation in the hemp industry.
04

Challenge: Market Misunderstanding and Stigma

The industrial hemp market also grapples with misunderstanding and stigma associated with hemp, often confused with marijuana due to their botanical kinship. Despite hemps low THC , the psychoactive compound found in high concentrations in marijuana, this misconception persists. This stigma can hinder consumer acceptance, limit product diversification, and negatively impact the market demand and dynamics.

Supply Chain Landscape

1
Cultivation

Hemp Genetics International

Ecofibre Ltd

2
Processing

HempFlax Group BV

Dun Agro Hemp Group

3
Manufacturing

Hemp Inc

Manitoba Harvest Hemp Foods

4
Distribution

CV Sciences

Elixinol Global Limited

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Industrial Hemp in Textiles Production, Nutritional Supplements & Construction Materials

Textiles Production

Industrial Hemp is extensively used in the textiles industry due to its high tensile strength and durability. Hemp fiber, a of Industrial Hemp, is woven into fabrics for clothing, bags, shoes, and home furnishings. Its unique advantage is its environmental sustainability as it requires less water and no pesticides for cultivation. Top players in this application include EnviroTextiles and Hemp Fortex, both known for their commitment to eco-friendly practices and high-quality hemp-based smart textiles.

Construction Materials

Another significant application of Industrial Hemp is in the construction sector. Hempcrete, a bio-composite material made from the inner woody core of the hemp plant, is used for insulation and construction of sustainable housing. It offers superior thermal performance and is resistant to mold, pests, and fire. Leading the market in this application are companies like American Lime Technology and Hempitecture, recognized for their innovative use of hempcrete in building eco-friendly structures.

Nutritional Supplements

Industrial Hemp is also widely used in the production of nutritional supplements. Hemp seeds, rich in essential fatty acids, proteins, and fiber, are used to produce hemp oil and hemp protein powder. These supplements are known for their health benefits, including improved heart health and digestion. Top players in this application include Manitoba Harvest and Nutiva, both renowned for their high-quality, organic hemp-based nutritional products.

Recent Developments

December 2024

HempCo International, a leading provider in the Industrial Hemp market, announced the launch of a new line of hemp-based bioplastics, aiming to revolutionize the sustainable packaging industry

October 2024

GreenField Agro, a prominent player in the Industrial Hemp sector, initiated a significant expansion of their hemp cultivation capacity to meet the increasing global demand for hemp-derived products

August 2024

BioHemp Technologies, a renowned manufacturer in the Industrial Hemp industry, introduced an innovative hemp-based insulation material, marking a significant step towards sustainable construction practices.

Industrial Hemp, a variant of the Cannabis Sativa plant species, has been at the forefront of recent market developments. Its diverse applications across multiple sectors such as textiles, construction, food, and pharmaceuticals have fueled its market growth. The versatility of Industrial Hemp is a testament to its potential, contributing to its rising demand globally.

Impact of Industry Transitions on the Industrial Hemp Market

As a core segment of the Pharmaceutical industry, the Industrial Hemp market develops in line with broader industry shifts. Over recent years, transitions such as Shift towards Sustainable Agriculture and Technological Advancements in Processing have redefined priorities across the Pharmaceutical sector, influencing how the Industrial Hemp market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift towards Sustainable Agriculture

The Industrial Hemp industry is witnessing a significant transition towards sustainable agriculture. This shift is primarily driven by the increasing awareness about the environmental impact of traditional farming practices and the need for sustainable alternatives. Industrial Hemp, with its low water and nutrient requirements, is emerging as a viable option for sustainable farming. This transition is not only reshaping the Industrial Hemp industry but also impacting associated industries such as textiles, construction, and paper. For instance, the use of Industrial Hemp in textile production reduces the reliance on cotton, which requires significant water and chemical inputs, thereby promoting sustainability in the textile industry. This industry transition is expected to add $2.9 billion in the industry revenue between 2024 and 2030.
02

Technological Advancements in Processing

The second major transition in the Industrial Hemp industry is the advent of advanced processing technologies. These technologies are enabling efficient extraction and processing of Industrial Hemp, leading to the production of high-quality hemp products. This transition is having a profound impact on industries such as pharmaceuticals and nutraceuticals, where Industrial Hemp extracts are used for producing various health and wellness products.
Report Price: $4,200

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