The industrial hemp market in North America and Oceania is projected to grow rapidly over the next several years, with a new report estimating the market will reach $7.23 billion by 2030.
Hemp plants.
This marks a compound annual growth rate (CAGR) of 20.5% from 2025 through the end of the decade, as demand for sustainable materials and advances in agricultural research drive expansion.
According to the report, the seeds segment dominated the market in 2024 and is expected to maintain its lead, thanks to rising demand for plant-based and sustainable products. Hemp seeds and seed oil are valued for their rich nutritional profile and high content of essential fatty acids, making them popular in food, beverage, and supplement markets. Shives—woody core fragments of the hemp stalk—are gaining traction as well, particularly in animal bedding applications, with a projected CAGR of 17.2%.
One of the standout growth areas is the automotive sector, which is anticipated to be the fastest-growing segment through 2030. Automakers are increasingly exploring hemp-based materials for interior panels and composites due to their lightweight, durable, and biodegradable properties. The report highlights this trend as a key driver of future growth, particularly as industries seek to reduce carbon footprints.
However, the report also notes several obstacles limiting the industry’s full potential. These include challenges in harvesting and processing technologies, logistical issues in transporting hemp across regulated borders, and lingering confusion between hemp and marijuana. To counteract these barriers, many companies are ramping up research and development in order to boost crop yields, reduce production costs, and develop innovative uses for hemp derivatives.
Hemp’s versatility remains one of its most appealing traits. The plant is currently used in over 25,000 products across industries including construction, textiles, cosmetics, personal care, and even furniture and paper. Its strength, low cost, and biodegradability make it an attractive option for manufacturers seeking eco-friendly alternatives to synthetic materials.
North America held the largest share of the regional market in 2024, propelled by rising consumer interest in sustainable goods and a growing number of industrial applications. Oceania, including Australia and New Zealand, is expected to follow suit as regulatory frameworks evolve and market infrastructure improves.
Among the companies leading the market are Fresh Hemp Foods Ltd., IND HEMP, Blue Sky Hemp Ventures, Panda Biotech, Marijuana Company of America, Kazmira, The Cannabis Co., Hemp Foods Australia, and Elixinol Ltd.
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