In 2024, the global industrial hemp market reached a valuation of USD 9.47 billion. Projections indicate growth to USD 11.42 billion in 2025 and a surge to USD 47.82 billion by 2032, reflecting a compound annual growth rate (CAGR) of 22.70% over the forecast period. Europe led the market in 2024, accounting for a 31.04% share. Meanwhile, the U.S. market is anticipated to expand significantly, potentially reaching USD 8.38 billion by 2032, driven by increasing utilization across industries such as pharmaceuticals, food and beverage, textiles, and cosmetics.

Industrial hemp, a variety of the Cannabis sativa plant, is distinguished by its low tetrahydrocannabinol (THC) concentration. Its wide adaptability and growing application in areas like food and beverages, dietary supplements, and textiles are playing a key role in propelling market growth.

Currently, more than 30 countries—including Argentina, Australia, Brazil, Canada, Colombia, Denmark, Germany, Greece, Ireland, Italy, Mexico, and the Netherlands—have legalized cannabis for medical purposes. The growing interest in hemp-derived cannabidiol (CBD) oil for addressing health concerns such as anxiety, stress, and chronic pain is also contributing to its broader use.

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

COVID-19 Impact

Temporary Setbacks, Lasting Growth Potential

The onset of the pandemic resulted in temporary shutdowns and long-term closures across multiple industries. However, the pharmaceutical sector remained largely operational, with ongoing activity among hemp-related retailers, processors, and cultivators. Supply chain issues, especially from China, created hurdles. Still, the increased prevalence of mental health challenges during this time drove up demand for hemp-based therapeutic products.

Market Segmentation

By Source: Conventional Hemp Leads Owing to Versatile Applications

The market is categorized into conventional and organic hemp. Conventional hemp is projected to maintain dominance due to its extensive use in industries such as automotive, textiles, and paper.

By Type: Rising Demand for Hemp Fiber

Product types include hemp fiber, hemp seeds, hemp seed oil, and others. Hemp fiber is expected to see significant growth due to its expanding role in the textile and automotive sectors.

By Application: Textile Industry Poised for Growth Amid Sustainability Trends

Applications span pharmaceuticals, cosmetics, beverages, and functional foods. The textile segment is projected to lead, driven by increasing consumer preference for sustainable materials and heightened environmental awareness.

Regional Analysis

Europe Holds Market Leadership

Europe is forecasted to continue its lead in the industrial hemp market due to high consumer demand for hemp-based products. Meanwhile, the Asia Pacific region is expected to witness robust growth, particularly with the rising use of hemp in paper and textile manufacturing.

Market Highlights