The Industrial Hemp market grew in value from $6.03 billion in 2023 to $7.07 billion in 2024, according to a new report.
The report anticipates that the market will continue to see rapid growth. At an anticipated compound annual growth rate (CAGR) of 17.29%, the market is expected to be valued at $25.33 billion by 2032.
According to the report, the market “is expanding steadily due to the significant changes in legislative frameworks that have made it easier for hemp to be grown and processed, the growing awareness of the advantages hemp has for the environment, and the expansion of hemp applications into a wide range of end-use industries.”
The report notes that in the US, according to the Department of Agriculture 54,152 acres were planted with industrial hemp for all purposes in the country. US hemp production in the open market was valued at $712 million in 2023.
“With over 40% of global pharmaceutical revenues coming from the pharmaceutical industry, the US has the largest pharmaceutical sector in the world. Even if it has recently declined, it will probably increase in the upcoming years. This increase is being driven by the aging and growing population in the United States. Furthermore, 15% of Americans are 65 years of age or older, and this number is expected to rise in the coming years. In general, the market demand for industrial hemp is anticipated to be driven by the expanding needs of the pharmaceutical sector.”
A vast range of industries, including textiles, building, food and drink, personal care, and pharmaceuticals, use hemp, notes the report. Technological advancements in hemp processing have increased its use by making it possible to extract premium fibers, seeds, and cannabinoids like CBD, which have a variety of uses. The use of hemp in health foods, cosmetics, and nutraceuticals has been boosted by rising consumer awareness of and desire for natural and organic products. Furthermore, new opportunities in the health and wellness industry are being created by the increased interest in CBD-based products because of their therapeutic qualities. “Its adaptability and ongoing innovation make it a profitable market with room to develop in a number of industries”, adds the report.
Sustainability and advantages for the environment
Growing in popularity as a sustainable crop with many environmental advantages, industrial hemp is seeing rapid commercial expansion. Compared to conventional crops, hemp grows quickly and requires fewer pesticides and herbicides, making it a more environmentally friendly crop. Its attractiveness in the context of climate change and environmental conservation is increased by its capacity to replenish soil nutrients, effectively absorb carbon, and use less water than many other crops. Furthermore, the biomass from hemp may be processed into a range of environmentally beneficial goods, such as biofuels, construction materials, and bioplastics, offering a sustainable substitute for finite resources. Sustainability and lowering carbon footprints are becoming more and more important worldwide, making it a more desirable option for a variety of sectors and driving market growth.
Industrial Hemp Market Overview by Regions
The industrial hemp market is gaining traction globally due to its versatility and sustainable applications across various industries, including textiles, construction, food, and health. An overview of the market by region is given below:
North America Industrial Hemp Market
United States
The industrial hemp sector in the US is growing quickly, particularly since the 2018 Farm Bill made hemp farming legal. This has sparked expansion in a number of industries, including food, building, textiles, and wellness goods, especially CBD. Demand has been further stimulated by growing consumer awareness of hemp’s health advantages and sustainability. Leading companies, HempFusion and Charlotte’s Web, are leading the way in hemp innovation. The United States is now positioned as a leader in the industrial hemp sector due to rising investment in research and development, despite regulatory obstacles and market volatility. In the upcoming years, the industry is anticipated to increase significantly.
Europe Industrial Hemp Market
Germany
The market for industrial hemp in Germany is expanding gradually due to rising consumer demand for environmentally friendly and sustainable goods. The nation’s well-established regulatory structure permits the growing of hemp, especially for seeds and fiber. Important uses include food items, building supplies, and textiles. The market potential is being enhanced by growing interest in CBD and wellness products, as well as growing awareness of hemp’s environmental benefits. Prominent entities such as Hempro International and HempFlax are actively engaged in promoting innovation and developing new products. Germany is establishing itself as a leader in the European hemp market, with bright development prospects as sustainability gains prominence.
Asia Pacific Industrial Hemp Market
China
China leads the world in the industrial hemp market thanks to widespread cultivation and a strong manufacturing base. The nation is the leader in the production of hemp fiber, which is mostly utilized in biocomposites, construction materials, and textiles. Growing interest in CBD and health products is also rising, with increasing investments in research and development. The industry is further boosted by regulations that are favorable and government backing. Two important firms that are leading the way in product innovation are China Hemp Network and Yunnan Industrial Hemp. As consumer awareness of hemp’s benefits develops, China’s market is likely to expand dramatically, strengthening its dominance in the global arena.
Middle East & Africa Industrial Hemp Market
Saudi Arabia
Saudi Arabia’s industrial hemp business is in its early stages but has tremendous promise due to the country’s focus on diversifying its economy and supporting sustainable practices. Growing hemp is becoming more legal according to recent regulations, especially for applications in construction, wellness goods, and textiles. The increasing recognition of hemp’s eco-friendly advantages corresponds with Saudi Arabia’s Vision 2030 program, which prioritizes sustainability. Regional projects are starting to investigate the agricultural benefits of hemp, and global collaborations might spur additional growth. The market is expected to grow gradually as rules change, drawing investment and innovation in the upcoming years.
Market Players
The major participants in the Industrial Hemp market includes:
- Marijuana Company of America Inc.
- American Cannabis Company, Inc.
- Ecofibre Limited
- Aurora Cannabis
- Agropur
- Darling ingredients Inc.
For more information on this report, click here.
