Industrial Hemp Market Size, Share & Trends 2025-2034

The industrial hemp market has experienced significant growth, with a valuation of USD 5,998.67 million in 2025. As demand for sustainable and eco-friendly products increases, the market is set to grow at an impressive CAGR of 19% from 2025 to 2034, reaching a projected value of USD 28,706.33 million by 2034. This surge in market growth is driven by the increasing use of hemp in a variety of industries, such as textiles, construction, pharmaceuticals, food, and more. While North America continues to dominate the market, the Asia Pacific is emerging as the fastest-growing region.

In this article, we will delve into the industrial hemp market outlook, key trends, market share dynamics, opportunities, challenges, and competitor analysis to provide a comprehensive understanding of the industry.

Industrial Hemp Market Outlook

The outlook for the industrial hemp market is highly promising, given the increasing demand for hemp-based products in diverse sectors. Hemp, known for its versatility, is being utilised in industries ranging from healthcare and textiles to construction and automotive. As countries across the globe begin to ease restrictions on hemp cultivation, this trend is likely to accelerate.

Hemp is regarded as a sustainable alternative to traditional raw materials due to its rapid growth cycle, minimal need for pesticides, and ability to improve soil health. This makes it particularly attractive to environmentally conscious consumers and manufacturers looking to reduce their carbon footprint.

In 2025, North America led the industrial hemp market, driven by the growing popularity of hemp-based products in the United States and Canada. The Asia Pacific region is expected to exhibit the highest growth during the forecast period, with countries like China and India increasingly incorporating hemp into their agricultural and industrial sectors.

Industrial Hemp Market Share Trends

The industrial hemp market is characterised by a wide range of product applications, each contributing significantly to the overall market share.

Hemp-based Products in Textiles: The textile segment continues to dominate the industrial hemp market. Hemp fibres are used in the production of clothing, upholstery, and various types of fabrics due to their strength, durability, and biodegradability.

Hemp for Food Beverages: With growing awareness about the health benefits of hemp, its use in the food and beverage sector has been steadily increasing. Hemp seeds are rich in proteins, healthy fats, and other nutrients, making them a sought-after ingredient in health-conscious food products.

Hemp in Construction: Hempcrete, a material made from hemp, is gaining traction as a sustainable alternative to concrete. The construction industry is increasingly adopting hemp for insulation, panels, and other building materials.

Hemp in Pharmaceuticals: The pharmaceutical sector is exploring the therapeutic potential of hemp, particularly its CBD (Cannabidiol) component, which is used in treatments for various health conditions, including anxiety, pain, and sleep disorders.

Hemp for Personal Care: Hemp-derived oils and extracts are commonly used in skincare products, shampoos, and cosmetics, thanks to their anti-inflammatory and moisturising properties.

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Industrial Hemp Market Opportunities and Challenges

Opportunities

Sustainable Agricultural Practices: Hemp’s ability to grow with minimal resources presents a significant opportunity for farmers looking for sustainable crops. Its ability to reduce soil erosion and improve soil health makes it an attractive option for regenerative agriculture.

Growth in Cannabis Legalisation: As more countries legalise cannabis, the demand for industrial hemp is likely to increase. In particular, the growing interest in hemp-based CBD products is expected to drive market expansion in the pharmaceutical and wellness sectors.

Government Support: Several governments worldwide are providing subsidies and incentives to promote hemp cultivation due to its potential environmental and economic benefits. This support is helping to lower barriers to entry for farmers and manufacturers.

Technological Advancements: The development of new technologies to improve the processing and utilisation of hemp is opening up new avenues for product innovation, particularly in areas like bio-plastics, sustainable packaging, and eco-friendly textiles.

Challenges

Regulatory Hurdles: While the legal landscape for industrial hemp is improving, several countries still have restrictive regulations around hemp cultivation and product usage. This continues to pose a challenge to producers and manufacturers who want to enter the market.

Market Education: Despite growing interest, the market for industrial hemp is still in its early stages, and many consumers are unfamiliar with the range of benefits it offers. Educating the public on the advantages of hemp-based products is essential for driving market growth.

Supply Chain Issues: The industrial hemp supply chain is still developing, and challenges such as the lack of processing facilities and inconsistent product quality could hinder market expansion in some regions.

Competitor Analysis

The industrial hemp market is fragmented, with several key players leading in various market segments. Here is an analysis of the major competitors shaping the market landscape:

Bombay Hemp Company Private Limited: An Indian company focused on producing hemp-based products for textiles, wellness, and food industries, playing a key role in promoting hemp cultivation in India.

HempFlax Group B.V.: A leading European producer of hemp fibers, seeds, and related products, HempFlax specializes in sustainable hemp materials for the textile, construction, and energy sectors.

HPS Food Ingredients Inc.: A major North American player in the hemp food sector, HPS Food Ingredients produces a variety of hemp-based food products, including protein powders, seeds, and oils, catering to the growing health-conscious market.

Unrivaled Brands, Inc.: A prominent U.S. cannabis and hemp company, Unrivaled Brands focuses on the production of high-quality hemp-based CBD products for wellness and therapeutic applications.

Others: Other key players in the industrial hemp market include global producers, regional suppliers, and niche players across various product segments like textiles, construction materials, and hemp-derived wellness products.