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