In 2024, the global industrial hemp market was valued at USD 9.47 billion. It is projected to grow from USD 11.42 billion in 2025 to USD 47.82 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 22.70% during the forecast period. Europe led the market in 2024, holding a 31.04% share. Meanwhile, the U.S. market is expected to experience rapid growth, potentially reaching USD 8.38 billion by 2032, driven by increasing adoption across sectors such as pharmaceuticals, food and beverage, textiles, and cosmetics.

Industrial hemp belongs to the Cannabis sativa species and is classified based on its low tetrahydrocannabinol (THC) content. Its adaptability and growing utilization across sectors such as food and beverages, dietary supplements, and textiles are significantly boosting market demand.

As of now, over 30 countries—including Argentina, Australia, Brazil, Canada, Colombia, Denmark, Germany, Greece, Ireland, Italy, Mexico, and the Netherlands—have legalized the medical use of cannabis. The rising popularity of hemp-derived cannabidiol (CBD) oil for managing conditions like anxiety, stress, and chronic pain is further driving its widespread adoption

Information Source: https://www.fortunebusinessinsights.com/industrial-hemp-market-102459 

COVID-19 Impact

Temporary Disruptions, Long-Term Opportunities

The pandemic led to temporary slowdowns and permanent closures in various industries. However, the pharmaceutical segment remained active, supported by continued operations of hemp-based retailers, processors, and cultivators. Supply chain disruptions, particularly from China, posed challenges. Nonetheless, the rise in mental health issues during this period boosted the demand for hemp-derived medicinal products.

Market Segmentation

By Source: Conventional Products to Lead Due to Versatility

The market is segmented into conventional and organic hemp. Conventional hemp is expected to dominate, given its widespread use in sectors like paper, automotive, and textiles.

By Type: Hemp Fiber to Register Strong Demand

Types include hemp fiber, hemp seeds, hemp seed oil, and others. Hemp fiber is projected to witness substantial growth, fueled by its increasing use in textiles and automotive applications.

By Application: Textile Segment to Expand Amid Sustainability Push

Hemp is used in applications ranging from pharmaceuticals and cosmetics to beverages and functional foods. The textile segment is forecasted to lead due to rising demand for eco-friendly materials and growing environmental awareness.

Regional Analysis

Europe Maintains Dominance

Europe is projected to remain at the forefront of the industrial hemp market due to robust consumer demand for hemp-based goods. Asia Pacific is expected to show strong growth as well, driven by hemp usage in textiles and paper manufacturing.

Market Highlights

The report delves into major growth drivers and restraints while evaluating the pandemic’s impact on demand. It also highlights emerging trends and competitive strategies used by leading companies.

Key Market Drivers and Challenges

Drivers: Growing Global Demand and Trade

Increasing use of hemp in food, healthcare, and textile products is accelerating market growth. Additionally, global trade in hemp fiber is on the rise.

Challenges: Regulatory Barriers

Tight regulations around hemp cultivation, distribution, and marketing in certain regions could limit market potential.

Competitive Landscape

Strategic Collaborations Driving Market Expansion

Leading companies are focusing on mergers, partnerships, and collaborations to strengthen market positioning and expand their global footprint.

Major Players in the Market

• 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, a provider of IT consulting and managed services, entered a partnership with Flourish Software. The collaboration aims to enhance integration and support services for businesses operating in the hemp industry.