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Industrial Hemp Market Size, Share Forecast Report 2023-2030

Industrial Hemp Market Size, Assessment, Share, Growth, Trends, Competition, Industry Analysis, Actionable Insights Report; By Type, By Source, By Farm, By Application, By Region and By Country; Outlook and Forecast, 2023 – 2030

Report ID: VMRC1257


Published Date: Jul, 2023


No Of Pages: 230


Format : Industrial Hemp Market Size, Share Forecast Report 2023-2030 Report Available in PDF, Excel, PPT and Excel


Base Year: 2022


Report Summary

What is Industrial Hemp Market Size and Growth?

The Global Industrial Hemp Market was valued in excess of USD 5 Billion in 2022 and is expected to amass a valuation of around USD 18 billion by 2030, registering a CAGR of about 17% over the forecast period. The remarkable expansion of the global industrial hemp market can be attributed to several pivotal factors.

Industrial hemp is a specific variety of the Cannabis sativa plant cultivated predominantly for industrial purposes. It contains low levels of THC, the psychoactive compound found in marijuana, making it a safer alternative.

Industrial hemp is defined in the technical and industry context based on its wide range of applications and uses in various industries, including textiles, construction, automotive, food & beverages, personal care, pharmaceuticals, and others. The focus lies on its non-psychoactive properties and the commercial viability of the industrial hemp plant for industrial purposes. It's important to note that the industrial hemp market is shaped by diverse legal definitions and regulations across different countries, mainly centered around the THC content present in the plant.

In European Union, the United States, and Canada, the industrial hemp market is defined by cannabis plants containing 0.3% THC or less on a dry weight basis. Exceeding this threshold categorizes the crop as marijuana, subject to separate regulations. Other countries have their own criteria for defining industrial hemp, adding to the diversity of the global industrial hemp market.

The primary focus of industrial hemp cultivation is its versatile fibrous stalks, which have a wide range of practical applications across industries such as textiles, paper, bioplastics, and construction materials. This contributes significantly to the growth and development of the industrial hemp market. Moreover, industrial hemp seeds are highly prized for their nutritional value, being a rich source of protein, essential fatty acids, and other beneficial compounds. In particular, hemp seed oil has gained considerable recognition in the industrial hemp market, finding widespread use in food products, personal care items, and dietary supplements. The increasing popularity of these hemp-derived products has further fueled the growth of the industrial hemp market. Industrial hemp plants are mostly cultivated in Outdoor industrial hemp farms and Indoor industrial hemp farms.

Furthermore, industrial hemp plays a significant role in the expanding cannabidiol (CBD) market. CBD, a non-psychoactive compound derived from hemp flowers and leaves, offers potential health and wellness benefits. Its popularity has soared across various forms, including oils, tinctures, capsules, topicals, and edibles, further driving the industrial hemp market.

Industrial hemp offers a sustainable and environmentally friendly substitute for conventional industrial materials. Its versatility in applications and the surging demand for hemp-based products have contributed to the remarkable growth and global recognition of the industrial hemp market. As industries recognize the benefits of using industrial hemp, its market continues to expand and gain widespread acceptance on a global scale.

Growing Consumer Demand for Sustainable Products Leverages Industrial Hemp

One of the primary drivers is the growing consumer demand for sustainable and eco-friendly products across diverse industries. As people become increasingly aware of the environmental consequences associated with their purchases, there is a notable surge in the preference for sustainable alternatives, including industrial hemp. This versatile plant has the advantage of requiring fewer pesticides and less water compared to other crops, making it an appealing choice for those seeking environmentally conscious solutions. The escalating demand for such eco-friendly products has played a vital role in propelling the growth of the industrial hemp market.

Increasing Utilization of Hemp in Food & Beverages and Pharmaceutical Industries

In recent years, hemp-based foods and beverages have been gaining significant popularity. These F&B products, derived from hemp, are renowned for their exceptional nutritional value and unique flavor profiles. With an increasing number of consumers gravitating towards health-conscious choices and organic products, there has been a notable surge in the demand for food and beverage items infused with hemp. This growing consumer trend has played a pivotal role in driving the remarkable growth of the industrial hemp market.

The pharmaceutical industry has witnessed a notable rise in the utilization of hemp. Specifically, hemp-derived compounds like CBD (cannabidiol) have garnered significant attention due to their potential therapeutic properties in addressing a wide range of health conditions. As a result, there has been an integration of hemp into pharmaceutical products, serving as a catalyst for the growth of the industrial hemp market across the globe.

Furthermore, the increasing prevalence of chronic diseases has played a critical role in driving the expansion of the industrial hemp market. Hemp-derived products, particularly those containing CBD, have garnered attention for their potential therapeutic effects in managing various symptoms associated with chronic conditions such as pain, epilepsy, and multiple sclerosis. The growing incidence of these diseases has consequently led to an increased demand for hemp-based solutions, propelling growth of global industrial hemp market.


Industrial Hemp Market: Trends and Outlook

  • Implementation of Hemp into Environmental and Sustainability Goals
  • Growing Popularity of Hemp-based Foods & Beverages
  • Increasing Demand for CBD And Hemp Infused Nutraceuticals and Personal Care Products
  • Development of New Hemp-based Biocomposites
  • Growing Movement and Sentiments for Legalization and Deregulation
  • Development of New Technologies for Processing Hemp


Several companies are pioneering the development of hemp-based biocomposites, positioning them as sustainable alternatives for applications spanning automotive components, boat construction, and wind turbine blade manufacturing. Hemp-based biocomposites are gaining prominence as sustainable substitutes for traditional sources such as wood and plastics, aligning with sustainability objectives of manufacturers. The demand for hemp-based textiles and clothing is also on the rise. Hemp fibers possess remarkable strength, breathability, and sustainability, making them an attractive option for eco-friendly fashion. As consumers prioritize sustainable and ethically produced clothing, the market for hemp textiles has experienced a significant surge. This growing preference for hemp-based fabrics has propelled the expansion of the industrial hemp market within the textile and clothing industry.

Moreover, the gradual legalization of industrial hemp cultivation in diverse regions has created a favorable environment for market expansion. As an increasing number of countries acknowledge the economic and industrial advantages associated with industrial hemp, the market has witnessed significant growth. The legalization process has also paved the way for a well-regulated industry, encouraging investments and fostering innovation within the sector.

Furthermore, the incorporation of cutting-edge technologies in the hemp processing and cultivation sector is a vital driver of growth for this industry. These advanced technologies streamline operations, enhance efficiency, and improve the overall quality of hemp products, thereby fueling market expansion. However, it is important to note that despite the positive advancements, hemp continues to face legal restrictions in many countries. The varying legal frameworks hinder the smooth progression of the marketplace and pose challenges to its widespread adoption and development. Efforts to address these legal barriers and establish consistent regulations are necessary to unlock the full potential of the hemp industry on a global scale.

What are Major Growth Drivers, Restraints, and Opportunities in the Industrial Hemp Market?

The Growing Popularity of Hemp-Derived CBD Products for their Potential Health Benefits is Augmenting Hemp Industry Outlook

Hemp-derived CBD products have gained recognition for their wide range of health benefits. CBD, short for cannabidiol, is a non-psychoactive compound found in the hemp plant, believed to possess various therapeutic properties. Its potential effects include pain relief, anxiety reduction, and anti-inflammatory properties. Additionally, CBD has been associated with weight loss benefits and improvements in heart health. The increasing body of medical research supporting the potential health advantages of hemp has led to the legalization of its industrial usage in numerous countries. These factors combined contribute to the dynamic growth of the industrial hemp market.

The Expansion of Legalization and Deregulation of Hemp Cultivation and Processing Sector across Multiple Countries is Bolstering Hemp Market Growth

There have been growing trends in cannabis legalization across various countries. This has led to an expansion in the industrial hemp cultivation and processing sectors. Industry players are making massive investments in this vertical and are looking to capitalize on the ever-growing demand for hemp-based products. Advanced technologies are being adopted by them to enhance hemp cultivation and production activities. This in turn is creating lucrative opportunities for this industry vertical to prosper.

Increasing Demand for Hemp based Products such as Textiles, Paper, and Building Materials

The demand for hemp-based products such as textiles, paper, and building materials has seen a notable increase, significantly impacting the growth of the industrial hemp market. As a highly sustainable crop requiring minimal resources, hemp appeals to eco-conscious consumers and industries seeking alternatives to traditional materials. These hemp-based products offer exceptional durability and versatility. Hemp fibers are renowned for their strength, making hemp textiles resilient and long-lasting. Hemp paper is also recognized for its durability, while hemp-based building materials like hempcrete provide excellent insulation properties and resistance to pests and mold.

Moreover, health and safety considerations play a role in the demand for hemp-based products. Hemp textiles are breathable and hypoallergenic, making them suitable for individuals with sensitivities. Hemp paper is free from toxic chemicals, and hemp-based building materials contribute to better indoor air quality.

This increasing demand for hemp-based products has had a substantial impact on the industrial hemp market, creating new opportunities for farmers, manufacturers, and entrepreneurs. Investments and innovations in cultivation, processing, and product development have fueled industrial hemp market growth, leading to a positive feedback loop of increased demand and expanded market opportunities. 

What are the Industrial Hemp Market Segmentations and Bifurcations?

Industrial Hemp Market Segments based on Type

  • Hemp Fiber
  • Hemp Seed
  • Hemp Seed Oil
  • Hemp Hurd
  • CBD Oil
  • Others

Hemp seeds gained a substantial revenue share of about 30% in the global industrial hemp market in 2022. Their popularity is rising in the food and nutraceutical industries due to their nutritious properties. Additionally, their use in lotions, shampoo, soap, bath gels, and cosmetics is contributing to market growth. The increasing demand for hemp seeds in cosmetics and personal care products is driving substantial projected growth for the hemp seeds segment in the forecast period.

Hemp seeds, derived from the Cannabis sativa plant, offer a host of nutritional benefits. They have minimal tetrahydrocannabinol (THC) content and are rich in essential fatty acids like omega-6 (linoleic) and omega-3 (linolenic), along with vitamins E, 81, 82, 86, and D, calcium, magnesium, and potassium. These seeds provide easily digestible protein (20-25%), polyunsaturated fatty acids (PUFA), ample lipids (25-35%), and carbohydrates (20-30%) complemented by a significant amount of insoluble fiber. With its balanced ratio of PUFA linoleic (LA omega-6) to alpha-linolenic acid (ALA omega-3) at 3:1, hemp seed nutrition is considered beneficial for human health and overall well-being.

The demand for hemp seeds in oil production is also growing. Hemp seed oil applications extend to personal care, food and beverages, and animal feed industries. Additionally, hemp oil finds its place in nutritional supplements and various medicinal and therapeutic products, including pharmaceuticals. As a result, the hemp seed market is poised for growth in the foreseeable future, driven by increasing demand from diverse industries seeking the benefits and versatility of hemp seed oil.

Hemp fibers find applications in various industries such as paper, home furnishing, insulation materials, construction, auto parts, carpeting, and composites. Insulation materials and bio-composites particularly rely on hemp fibers due to their lightweight nature, excellent strength, biodegradability, and favorable thermodynamic properties.

Industrial Hemp Market Segments based on Source

  • Conventional
  • Organic

Based on source, the organic hemp segment is projected to grow at the highest rate during the forecast period since hemp plants that are grown organically are free from toxins and are healthier for end users. However, conventional hemp held the leading share of the global industrial hemp market. Conventionally grown hemp plant refers to a non-GMO crop cultivated without the use of pesticides. Unlike certified organic hemp, conventional hemp does not require strict inspections and guidelines, making it more affordable. This type of hemp is gaining traction in industries such as textiles, pulp and paper, as well as biofuel, construction, furniture, and bioplastics. Hemp Factory in Germany offers a range of traditional hemp-based products, including whole unpeeled hemp seeds, peeled hemp seeds, cold-pressed hemp seed oil, refined hemp seed oil, and hemp flour. These products cater to the increasing demand for hemp and its versatile applications in various sectors.

Industrial Hemp Market Segments based on Farm

  • Outdoor Industrial Hemp Farm
  • Indoor Industrial Hemp Farm

In terms of farm type, the outdoor industrial hemp farm segment has emerged as the leading segment in the global industrial hemp market. Outdoor hemp cultivation is preferred for its affordability, making it a popular choice among farmers. However, indoor industrial hemp farms, while less common, are gaining traction. These indoor hemp farms are set up in controlled environments, providing protection against pests and diseases. The plants are cultivated in pots or trays and undergo artificial pollination. While indoor farms have the advantage of potentially higher yields, they also come with higher operating costs. Nonetheless, the growing popularity of indoor farms indicates their potential to play a significant role in the industrial hemp market during the forecast period.

Industrial Hemp Market Segments based on Application

  • Personal Care
  • Pharmaceuticals
  • Food & Beverages
  • Textiles
  • Animal Care & Nutrition
  • Automotive
  • Furniture
  • Paper
  • Building & Construction Materials
  • Others

Based on application, food & beverages and textiles segments held dominant share in the global industrial hemp market in 2022. Hemp is gaining popularity in the food & beverages industry due to its rich nutritional profile, including essential fatty acids, vitamins, and minerals. Hemp seeds consumed raw or roasted, are incorporated into various food products such as salads, smoothies, yogurt, and cereals. The increasing demand for plant-based protein, driven by the rise of veganism, is expected to boost the demand for hemp-based processed food items such as bars, flour, snacks, and cheese. Hemp's digestible fiber content also contributes to its demand in food products, improving digestion. Hemp-based snacks such as tortilla chips, corn chips, and hemp hearts have gained popularity. Moreover, hemp is utilized in breakfast cereals for its nutrient-rich profile and as a post-exercise food due to its high protein content.

Hemp fabric has garnered recognition in the textile industry for its exceptional qualities. Its remarkable strength sets it apart as a durable option for diverse textile applications. Moreover, hemp fabric has the added benefit of being hypoallergenic, making it an ideal choice for individuals with sensitive skin or allergies. The distinct properties of hemp fabric, such as its resistance to UV light and moisture-related concerns, establish it as a preferred choice among textile manufacturers. Furthermore, its versatility to be blended with other fibers broadens its potential applications, paving the way for innovative and environmentally sustainable textile products.

The pharmaceuticals segment is slated to generate significant returns for the industrial hemp industry over the forecast period. Hemp is known to offer a wide array of health benefits. It is known for improving heart health and also has antioxidant effects. It also relieves chronic pains while aiding in weight loss.

What are the Regional and Country Trends in the Industrial Hemp Market?

Industrial Hemp Market - Regional Trends and Insights

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • South America

Asia Pacific emerged as the dominant player in the global industrial hemp market in 2022, driven by the increasing popularity of hemp-based products across various industries in the region. Numerous countries in APAC are actively involved in the production and consumption of industrial hemp and its derivatives, including fiber, seed, hurds, and oil. China is the world's largest producer and supplier of industrial cannabis and hemp products, including paper and textiles. The presence of prominent manufacturers and the widespread use of cannabis in industrial activities contribute to the robust demand for hemp products. Additionally, the growing awareness of the health benefits of hemp, the flourishing pharmaceutical sector, and the rising elderly population further fuel the growth of the industrial hemp market in the Asia Pacific region.

North America is also a prominent market for industrial hemp owing to increased instances of marijuana legalization for medical and recreational uses, the existence of significant players, the increasing incidence of skin-based diseases, and the accelerated industrialization of the hemp sector. The increasing demand for hemp-based products such as food and beverages, textiles, and CBD is driving the growth of the North American industrial hemp market. North America region offers significant opportunities as more consumers embrace the benefits of hemp products. With a robust hemp industry and favorable market conditions, North America stands as one of the key regions in the global industrial hemp market. The Europe industrial hemp market is set to witness substantial growth in the foreseeable future. Industrial hemp finds applications in diverse industries including automotive manufacturing, construction, textiles, and fabric production utilizing natural fibers in this region. However, the key driving force behind this growth is expected to be the rising demand for hemp oil in the food, supplements, cosmetics, and personal care sectors. As consumers become increasingly knowledgeable about the advantages of hemp-based products, the European market presents promising prospects for businesses operating in the industrial hemp industry.


Report Attributes


Industrial Hemp Market Forecast Years:

2023 to 2030

Industrial Hemp Market Historical Years:

2019, 2020, 2021, 2022

Industrial Hemp Market 2022:

USD 5 Billion

Industrial Hemp Market CAGR:

17% (2023 to 2030)

Industrial Hemp Market 2030:

USD 18 Billion

Key Segments: 

Type, Source, Farm Type, Application, and Region

Key Regions & Countries: 

North America (The U.S. Canada, Mexico), Europe (Germany, The U.K, France, Spain, Russia, Poland, Benelux, Nordic Countries, Rest of Europe Countries), Asia Pacific (China, Japan, India, South Korea, ASEAN, Australia, Rest of APAC Countries), Middle East & Africa (GCC – UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kuwait, South Africa, Egypt, Rest of MEA Countries), and South America (Brazil, Argentina, Colombia, Chile, Rest of South America Countries). 

Some of the Key Players:

American Hemp, BAFA, Boring Hemp Company, Canah International, Colorado Hemp Works, Cronos Group, Curaleaf, Dun Agro Hemp Group, Ecofibre Limited, Gencanna, Global Hemp Group, Green Thumb Industries, Hemp Oil Canada, Hemp, Inc., HempFlax, HempMeds Brasil, Konoplex, Marijuana Company of America, Inc., MH Medical Hemp, North American Hemp & Grain Co. Ltd., Parkland Industrial Hemp, South Hemp Tecno, Unrivaled Brands, Inc., Valley Bio Limited, and Others.


How is the Competition Scenario in Industrial Hemp Market?

Industrial Hemp Market - Competitive Landscape

Players in the industrial hemp market are focusing on various strategies to enhance their presence and generate substantial revenue. They are expanding their product portfolio to cater to different applications and end-users, with some specifically targeting the food and beverage industry while others concentrate on developing hemp-based building materials for construction. Additionally, players are investing in research and development to improve cultivation and processing efficiency, leading to cost savings and increased profitability.

To strengthen their market position, major players in the industrial hemp industry are expanding distribution channels by embracing online sales through e-commerce platforms and forming partnerships with brick-and-mortar retailers. These initiatives aim to enhance product visibility and accessibility. Furthermore, strategic partnerships and acquisitions are being pursued to expand market share and gain a competitive advantage.

Many substantial variables influence competition in the industrial hemp industry, including the large-scale production of high-quality hemp, differences in seed size and oil content, prospective yields, processing techniques, and total production costs. Market players are thus aggressively expanding their hemp cultivation and processing facilities in regions where it is legally approved. To increase yields and improve product quality, players are also spending a significant amount on research and development activities. By focusing on these strategic initiatives, companies aim to gain a competitive edge and meet the increasing demand for various industrial hemp products.

Some of the key players operating in the industrial hemp market include American Hemp, BAFA, Boring Hemp Company, Canah International, Colorado Hemp Works, Cronos Group, Curaleaf, Dun Agro Hemp Group, Ecofibre Limited, Gencanna, Global Hemp Group, Green Thumb Industries, Hemp Oil Canada, Hemp, Inc., HempFlax, HempMeds Brasil, Konoplex, Marijuana Company of America, Inc., MH Medical Hemp, North American Hemp & Grain Co. Ltd., Parkland Industrial Hemp, South Hemp Tecno, Unrivaled Brands, Inc., and Valley Bio Limited among various others.

Notable Hemp Industry Developments

  • In December 2021, Green Thumb Industries made an announcement regarding the acquisition of Leafline Industries, a licensed medical cannabis cultivator.
  • In February 2021, HemPoland introduced CannabiGold Sport, a hemp-based health supplement range primarily designed for fitness enthusiasts,
  • In September 2021, GenCanna acquired CBD Capital Ltd. which provided CBD isolate, distillate, and water-soluble bulk ingredients, as well as white and private label services, serving the UK, EU, and global markets. This acquisition also includes several sub-brands, which will benefit from increased product development and market expansion efforts.
  • In March 2021, Curaleaf Holdings Inc. completed the acquisition of Emmac Life Sciences, a European cannabis startup, for USD 286 million.


What is the global industrial hemp market growth?

The global industrial hemp market is expected to grow at a compound annual growth rate (CAGR) of around 17% from 2023 to 2030.

Which segment accounted for the largest global industrial hemp market share?

Asia Pacific held around 30% market share of the global industrial hemp market in 2022. This can be attributed to the increasing production and consumption of industrial hemp in APAC. China is one of the leading producers of industrial hemp-based products. Europe and North America are projected to grow significantly during the forecast period.

Who are the key players in the industrial hemp market?

Some of the key players operating in the industrial hemp market include American Hemp, BAFA, Boring Hemp Company, Canah International, Colorado Hemp Works, Cronos Group, Curaleaf, Dun Agro Hemp Group, Ecofibre Limited, Gencanna, Global Hemp Group, Green Thumb Industries, Hemp Oil Canada, Hemp, Inc., HempFlax, HempMeds Brasil, Konoplex, Marijuana Company of America, Inc., MH Medical Hemp, North American Hemp & Grain Co. Ltd., Parkland Industrial Hemp, South Hemp Tecno, Unrivaled Brands, Inc., Valley Bio Limited, and Others.

How big is the global industrial hemp market?

The global industrial hemp market size in terms of revenue was estimated to be around USD 5 Billion in 2022.

What are the factors driving the industrial hemp market?

Some of the key factors driving the industrial hemp market growth include increasing demand from the end-user industries for diverse applications. The agricultural, environmental, and sustainability benefits offered by industrial hemp have also boosted the demand for industrial hemp.

What are the key trends in the industrial hemp market?

Some of the key trends identified in the industrial hemp market include the increasing awareness and sentiments for legalization & deregulation, the development of new hemp-based biocomposites, the development of new technologies for processing hemp, the implementation of hemp into environmental and sustainability goals, the growing popularity of hemp-based foods and beverages, and the increasing demand for CBD and hemp infused nutraceuticals and personal care products.

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Key Growth and Driving Factors

Key Opportunities in the Market

Products and Services Innovation Listing

Key Technological Trends & Timeline

Regulatory and Policy Analysis

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