In 2024, the global industrial hemp market was valued at USD 9.47 billion. It is expected to expand from USD 11.42 billion in 2025 to USD 47.82 billion by 2032, registering a compound annual growth rate (CAGR) of 22.70% over the forecast period. Europe held the largest share of the market in 2024, accounting for 31.04%. Meanwhile, the U.S. industrial hemp market is forecasted to experience significant growth, reaching approximately USD 8.38 billion by 2032, fueled by the product’s growing integration across diverse sectors, including pharmaceuticals, food and beverages, textiles, and cosmetics.
Industrial hemp, a variety of Cannabis sativa, is categorized based on its low tetrahydrocannabinol (THC) levels. Its growing application in sectors such as food and beverages, supplements, textiles, and more is boosting demand worldwide.
Information Source: https://www.fortunebusinessinsights.com/industrial-hemp-market-102459
Impact of COVID-19
Pandemic Effects: Temporary Decline in Demand
The COVID-19 pandemic led to temporary and permanent shutdowns for several businesses and services. However, the pharmaceutical sector saw continued activity from hemp-related retailers, processors, and cultivators. The global supply chain faced disruptions, particularly due to China’s trade restrictions. Nevertheless, rising mental health concerns during the pandemic period increased demand for hemp-based medicinal products.
Market Segmentation
Source: Conventional Segment to Dominate Due to Broad Industrial Use
The market is segmented into conventional and organic sources. The conventional category is expected to witness strong growth, driven by its widespread use across sectors such as textiles, automotive, and paper production.
Type: Hemp Fiber to Show Robust Growth in Textiles and Automotive Industries
Market types include hemp fiber, hemp seeds, hemp seed oil, and others. Hemp fiber is projected to achieve notable growth, primarily due to its rising utilization in the textile and automotive industries.
Application: Textile Industry to Lead Amid Rising Sustainability Trends
Applications include pharmaceuticals, cosmetics and personal care, beverages, food (dietary and functional), and others. The textile sector is anticipated to record substantial growth as sustainable materials gain popularity and consumer awareness of climate issues increases.
Geographical Scope:
The industrial hemp market is assessed across regions including Asia Pacific, Europe, North America, South America, and the Middle East & Africa.
Report Highlights
The report explores the major drivers and restraints impacting market growth and analyzes the influence of COVID-19 on product demand. It also reviews emerging trends and company strategies designed to secure competitive advantages.
Market Drivers and Challenges
Growth Factors: Expanding Global Trade in Hemp Products
The demand for hemp-derived goods is increasing in areas like food, pharmaceuticals, and textiles, driving market expansion. International trade of hemp fiber is also on the rise, supporting global growth.
Constraints: Regulatory Challenges
Strict laws governing the cultivation, sale, and marketing of industrial hemp in some countries could act as a barrier to market development.
Regional Insights
Europe: Leading the Market Due to High Consumption
Europe is expected to maintain its leading position in the industrial hemp market, with significant demand for hemp-based products. The Asia Pacific region is also anticipated to grow steadily, with strong use in textile and paper industries.
Competitive Landscape
Strategic Partnerships and Collaborations to Enhance Market Presence
Key players in the industry are focusing on partnerships, alliances, and collaborations to reinforce their positions. These strategies also include mergers and acquisitions to gain a competitive edge.
Key Companies Profiled
- 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 Industry Development
- February 2023: Alcott Enterprises, an IT consulting and managed services firm, partnered with Flourish Software. The collaboration aims to enhance support, integration, and implementation services for companies in the hemp sector.
