The global industrial hemp market, valued at $5.6 billion in 2024, is projected to grow to $13.9 billion by 2028, according to a report by Technavio.
Hemp plants.
This marks a compound annual growth rate (CAGR) of 25.25% over the forecast period. The report attributes this growth to increased demand across industries such as textiles, food and beverages, personal care, and biofuels. Asia-Pacific (APAC) is expected to lead this expansion, contributing 39% of the global market growth. Countries such as China, India, and Japan are key players, bolstered by their strong agricultural base and recent legalization of hemp cultivation, states the report.
The seeds segment is identified as the fastest-growing category within the industrial hemp market. Valued for their high nutritional content, hemp seeds are widely used in products such as hemp milk, oils, and protein powders. The rising popularity of plant-based diets and organic products is a significant driver behind this growth.
Hemp fibers and shivs are also in high demand, particularly in textile and construction applications. The plant’s versatility and sustainability make it a crucial component in addressing the growing need for eco-friendly materials.
Key players shaping the market include Aurora Cannabis Inc., Canopy Growth Corp., Charlotte’s Web Holdings Inc., and Tilray Brands Inc. Regionally, North America and Europe remain strong contributors, but APAC is poised to dominate due to increasing industrial applications and supportive policies.
Technavio’s report emphasizes hemp’s potential as a sustainable resource, offering benefits such as reduced carbon emissions and eco-friendly production. With its wide range of applications, industrial hemp is positioned as a cornerstone of innovation for industries transitioning toward greener alternatives.
