The global industrial hemp market was valued at USD 9.47 billion in 2024 and is projected to rise from USD 11.42 billion in 2025 to USD 47.82 billion by 2032, reflecting a robust CAGR of 22.70% during the forecast period. In 2024, Europe held the largest share at 31.04%. The U.S. market is also set for substantial expansion, expected to reach USD 8.38 billion by 2032, fueled by increasing adoption across industries such as pharmaceuticals, food & beverages, textiles, cosmetics, and more.
Industrial hemp, a botanical variety of Cannabis sativa, is classified based on its tetrahydrocannabinol (THC) content. Its versatility and broad applicability in sectors such as dietary supplements, textiles, food products, and beverages are driving global demand.
Medical cannabis has been legalized in more than 30 countries, including Argentina, Australia, Brazil, Canada, Colombia, Denmark, Germany, Greece, Ireland, Italy, Mexico, and the Netherlands. The rising use of hemp-derived cannabidiol (CBD) oil for managing conditions like anxiety, stress, and chronic pain is further boosting product adoption.
The COVID-19 pandemic caused significant disruptions across industries worldwide, with many retail and service-based businesses closing temporarily or permanently. However, hemp growers, processors, and retailers continued operations in the pharmaceutical space. China, a major producer of industrial hemp fibers used in textiles, paper, cosmetics, and food products, faced export and import restrictions that affected the global supply chain in 2020. At the same time, pandemic-induced mental health concerns drove higher consumption of CBD oil products in various countries as people sought remedies for stress and anxiety during lockdowns.
Information Source: https://www.fortunebusinessinsights.com/industrial-hemp-market-102459
Market Segmentation
The market is segmented by source, type, and application. By Source, conventional hemp continues to dominate due to its extensive use in industries such as automotive, textiles, and paper. By Type, the market includes hemp seeds, hemp seed oil, hemp fiber, and others, with hemp fiber projected to witness strong growth, especially in sustainable textiles and automotive components. By Application, key sectors include cosmetics, pharmaceuticals, food & beverages, and textiles, with the textile segment leading the market on the back of rising demand for eco-friendly and innovative green materials.
Regional Insights
Europe Leads While Asia Pacific Shows Strong Growth
Europe is expected to maintain its leadership position, supported by increasing acceptance and awareness of hemp-based products. The Asia Pacific region is projected to grow rapidly, with higher usage of hemp in textile and paper manufacturing contributing to its expansion.
Report Highlights
This report provides a detailed assessment of market dynamics, including primary growth drivers, key challenges, and post-pandemic recovery trends. It also examines innovations in hemp-based products and the strategic measures leading companies are adopting to strengthen their market positions.
Key Drivers and Challenges
Market growth is fueled by the expanding range of hemp applications across wellness, nutrition, and apparel industries, coupled with rising global trade in hemp raw materials. However, strict regulations on hemp cultivation, processing, and sales in certain regions remain a barrier to broader adoption.
Competitive Landscape
Strategic Collaborations Enhance Market Reach
Major players are engaging in partnerships, joint ventures, and acquisitions to expand their international presence and reinforce their competitive edge.
Key Companies in the Industrial Hemp Market: