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What is the projected value of the industrial hemp market by 2029?
The industrial hemp market size has grown exponentially in recent years. It will grow from $7.34 billion in 2024 to $8.83 billion in 2025 at a compound annual growth rate (CAGR) of 20.4%. The growth in the historic period can be attributed to increasing demand for hemp-based textiles, rising awareness of hemp’s sustainability, growing use of hemp in construction materials, legalization of hemp cultivation in multiple countries, rising demand for hemp-derived CBD products, increasing use of hemp in animal feed.
The industrial hemp market size is expected to see rapid growth in the next few years. It will grow to $18.3 billion in 2029 at a compound annual growth rate (CAGR) of 20.0%. The growth in the forecast period can be attributed to expanding applications in the automotive sector, increased use of hemp in bioplastics, rising demand for hemp in the food and beverage industry, rising interest in sustainable agriculture, growing demand for hemp-based dietary supplements. Major trends in the forecast period include advancements in hemp cultivation techniques, expanding application of hemp in pharmaceutical industries, development of hemp-based packaging materials, integration of hemp in sustainable construction projects, advancements in genetic modification of hemp for higher yields.
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How are technological advancements fueling growth in the industrial hemp market?
The increasing demand for sustainable and eco-friendly products is expected to propel the growth of the industrial hemp market going forward. Sustainable and eco-friendly products are goods designed to minimize environmental impact by using renewable resources, reducing waste, and promoting ecological balance. The increasing demand for sustainable and eco-friendly products is due to growing environmental awareness, regulatory pressures, consumer preference for green alternatives, and corporate commitments to reducing carbon footprints. Industrial hemp is known for its ability to grow rapidly with minimal resources. It requires fewer pesticides and herbicides than conventional crops, reducing chemical runoff and soil degradation. For instance, in March 2023, according to the NYU Stern Center for Sustainable Business (CSB), a US-based academic research center, sustainability-marketed products gained market share despite high inflation in 2022, making up 17.3% of purchases compared to conventionally marketed products, an increase of 0.3% from 2021. Therefore, the increasing demand for sustainable and eco-friendly products drives the industrial hemp market.
Which segment currently leads the industrial hemp market in terms of revenue share?
The industrial hempmarket covered in this report is segmented –
1) By Type: Hemp Seed, Hemp Seed Oil, Cannabidiol (CBD) Hemp Oil, Hemp Bast, Hemp Hurd
2) By Source: Conventional, Organic
3) By Application: Food And Beverages, Textiles, Pharmaceuticals, Personal Care Products, Animal Nutrition, Paper, Construction Materials, Other Applications
Subsegments:
1) By Hemp Seed: Whole Hemp Seeds, Hulled Hemp Seeds, Hemp Seed Protein Powder
2) By Hemp Seed Oil: Cold-Pressed Hemp Seed Oil, Refined Hemp Seed Oil, Hemp Seed Oil Capsules
3) By Cannabidiol (CBD) Hemp Oil: Full-Spectrum CBD Oil, Broad-Spectrum CBD Oil, CBD Isolate Oil
4) By Hemp Bast: Hemp Fiber, Hemp Textiles, Hemp Composites
5) By Hemp Hurd: Hemp Hurd For Bio-composites, Hemp Hurd For Animal Bedding, Hemp Hurd For Biofuels
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What are the top market trends driving innovation in the industrial hemp industry?
Major companies operating in the industrial hemp market are focused on developing innovative products, such as biochar derived from industrial hemp, to sequester carbon, improve soil health, and generate revenue through carbon credits while supporting sustainable agriculture. Biochar derived from industrial hemp enhances soil fertility and carbon sequestration, providing a sustainable solution that benefits both agriculture and the environment within the industrial hemp market. For instance, in June 2024, Hempalta Corp., a Canada-based agricultural technology company, launched a biochar. This product is a carbon-rich material produced from organic matter, such as industrial hemp, through pyrolysis, which involves heating biomass at high temperatures in an oxygen-limited environment to trap carbon. This results in a product that enhances soil fertility and health by increasing organic carbon, improving water retention, and promoting beneficial microbial activity. It also converts agricultural waste into a valuable resource that allows farmers to monetize their efforts through carbon credits, as biochar qualifies for carbon removal initiatives. This finds versatile applications in landscaping, construction as part of hempcrete, and environmental remediation, making it an eco-friendly solution that supports agricultural productivity and climate change mitigation.
Who are the top competitors in the global industrial hemp market?
Major companies operating in the industrial hemp marker are Curaleaf Holdings Inc., Aurora Cannabis Inc., Konoplex Group, Plains Industrial Hemp Processing Ltd., Manitoba Harvest Hemp Foods Information, Ecofibre Limited, Elixinol, HempFlax Group BV, PureHemp Technology, Zelios, Parkland Industrial Hemp Growers Cooperative Ltd., Marijuana Company of America Inc., IND HEMP LLC, Blue Sky Hemp Ventures Ltd., Bombay Hemp Company, Panda Biotech LLC, HempMeds Brasil, Hempro International GmbH, Dun Agro Hemp Group, Greenfield Paper Company, Hempco Food and Fiber Inc., Bast Fibre Technologies Inc., Treehouse Biotech, The Hemp Mine, Bastcore Inc., Bluebird Botanicals, South Hemp Tecno Srl
What regional dynamics are shaping the future of the global industrial hemp market?
North America was the largest region in the industrial hemp market in 2024. The regions covered in the industrial hemp marker report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
How Can Companies Use The Industrial Hemp Market Report to Drive Business Results?
This report provides actionable insights tailored for business use—not academic analysis. Companies can leverage the data to:
• Time market entry or expansion using growth forecasts and CAGR trends.
• Develop competitive products by tracking key technology shifts and user preferences.
• Tailor regional strategies with in-depth geographic data and local market dynamics.
• Benchmark and plan partnerships using competitive landscape insights.
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