According to Syndicate Market Research, the global Industrial Hemp market hit about USD 11.08 billion in 2024. The Industrial Hemp industry is expected to reach around USD 13.6 billion in 2025 and a whopping USD 71.53 billion by 2034, growing at a steady compound annual growth rate (CAGR) of roughly 22.77% from 2026 to 2034. The report analyzes the Industrial Hemp market's drivers, restraints, and the impact it has on demand during the forecast period. Furthermore, it will assist in navigating and exploring emerging market prospects.
The industrial hemp market encompasses the cultivation, processing, and commercialization of hemp plants for non-psychoactive uses, including fibers, seeds, oils, and extracts utilized in textiles, food, construction, and pharmaceuticals, distinguished from cannabis by low THC content.
In summary, the market is driven by legalization trends, rising demand for sustainable materials, and applications in health products, while restrained by regulatory hurdles and supply chain issues; key trends include bio-based innovations, CBD integration in wellness, and focus on eco-friendly textiles amid global sustainability pushes.
Growth Drivers
Progressive regulations in regions like North America and Europe have expanded hemp cultivation, enabling diverse applications in eco-friendly materials and health products.
Rising consumer preference for natural alternatives drives innovation, supported by investments in R&D for high-yield varieties and efficient processing.
Restraints
Varying global laws on hemp cultivation and THC limits create compliance challenges, limiting market entry in restrictive areas.
Climate dependencies and raw material shortages affect supply stability, while adulteration concerns erode trust in product quality.
Opportunities
Expanding CBD use in wellness offers avenues for premium extracts, with R&D in bio-composites for construction and automotive sectors.
Emerging markets in Asia provide cultivation potential, aligned with sustainable development goals and export opportunities.
Challenges
Fragmented supply chains and small-scale farming hinder scalability, while competition from synthetic alternatives pressures pricing.
Environmental factors like pollination issues threaten yields, requiring adaptive farming practices for sustained growth.
| Report Attributes | Report Details |
|---|---|
| Report Name | Industrial Hemp Market |
| Market Size in 2024 | USD 11.08 Billion |
| Market Size in 2025 | USD 13.6 Billion |
| Market Forecast in 2034 | USD 71.53 Billion |
| Growth Rate (2026-2034) | CAGR of 22.77% |
| Base Year | 2025 |
| Historical Year | 2020 - 2024 |
| Forecast Year | 2026 - 2034 |
| Number of Pages | 225 |
| Report Coverage | Revenue Forecast, Market Dynamics, Company Profile, Competitive Landscape, Recent Developments, Growth Factors, and Recent Trends |
| Key Companies Covered | Hempco, Ecofibre, Hemp Inc., and Others. |
| Segments Covered | By Type, By Application, and By Region |
| Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, and The Middle East and Africa (MEA) |
| Customization Scope | Customization for Segments, Region, Country-level will be provided. Avail customized purchase options to meet your exact research needs. Request For Customization |
The Industrial Hemp market is segmented by type, application, and region.
Based on Type Segment, the Industrial Hemp market is divided into hemp seed, hemp oil, hemp fiber, CBD hemp oil, and others. The hemp fiber segment is the most dominant, holding approximately 35% market share, due to its strength and sustainability in textiles and composites, which drives the market by replacing synthetic materials in eco-conscious industries. The CBD hemp oil segment is the second most dominant, with around 30% share, as it caters to wellness and pharmaceutical demands, contributing to market growth through high-value extracts.
Based on Application Segment, the Industrial Hemp market is divided into food and beverages, textiles, pharmaceuticals, personal care, construction materials, and others. The food and beverages segment dominates with about 40% share, owing to nutritional seeds and oils in health foods, propelling market expansion by aligning with clean-label trends. The textiles segment follows as the second dominant, capturing roughly 25% share, driven by sustainable fabrics, aiding market growth amid green fashion movements.
Asia Pacific holds the largest share in the industrial hemp market, approximately 34%, driven by extensive cultivation and manufacturing. China dominates within the region due to its leading production and export capabilities; government support enhances supply chains, boosting textiles and food applications.
North America captures around 30% of the market, supported by legalization. The United States leads with farm bill expansions; investments in CBD drive pharmaceutical growth.
Europe accounts for about 25% share, emphasized by sustainable policies. France is the dominant country, with large hemp farms for fibers; EU subsidies promote eco-materials.
Latin America and the Middle East & Africa hold the remaining share, with potential in agriculture. Uruguay leads in Latin America through legalization, while Turkey dominates MEA with traditional cultivation.
Some of the significant players in the global Industrial Hemp market include;
By Type
By Application
By Region
What is Industrial Hemp?
Industrial hemp is a non-psychoactive cannabis variety used for fibers, seeds, oils, and extracts in various industries.
What are the principal factors expected to drive expansion in the Industrial Hemp market between 2026 and 2034?
Principal factors include legalization, sustainable demand, and CBD growth.
What is the projected market size of the Industrial Hemp market from 2026 to 2034? (add both values)
The market is projected to grow from approximately USD 13.86 billion in 2026 to USD 71.53 billion by 2034.
What overall growth rate (CAGR) is the Industrial Hemp market predicted to achieve between 2026 and 2034? (full answers)
The Industrial Hemp market is predicted to achieve a compound annual growth rate (CAGR) of 22.77% between 2026 and 2034, driven by applications.
Which geographic region is forecasted to be a leading contributor to the overall Industrial Hemp market valuation?
Asia Pacific is forecasted to be the leading contributor, holding around 34% of the market share due to production in China.
Who are the top companies dominating and driving the Industrial Hemp market forward?
Top companies include Hempco, Ecofibre, Hemp Inc., GenCanna, and HempFlax BV, leading through expansions.
What key information or findings can typically be expected from the global Industrial Hemp market report?
Typical findings include market size forecasts, segmentation details, regional insights, competitive profiles, growth drivers, and sustainability trends.
What are the various stages in the value chain of the global Industrial Hemp industry?
The value chain includes cultivation, processing, extraction, formulation, distribution, and end-use.
How are current market trends and evolving consumer preferences influencing the Industrial Hemp market?
Trends like bio-based products and CBD wellness are boosting demand.
What regulatory changes or environmental factors are impacting the growth of the Industrial Hemp market?
Legalization and sustainability pushes are positively impacting growth.
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1.1 Research Methodology
The process of market research at Syndicate Market Research is an iterative in nature and usually follows following path. Information from secondary is used to build data models, further the results obtained from data models are validated from primary participants. Then cycle repeats where, according to inputs from primary participants, additional secondary research is done and new information is again incorporated into data model. The process continues till desired level of information is not generated.
To calculate the market size, the report considers the revenue generated from the sales of the market providers. The revenue generated from the sales of market is calculated through primary and secondary research. The key players operating in the market across the globe are identified through secondary research and a corresponding detailed analysis of the top vendors in the market is done. The market size calculation also includes clinical trial phase segmentation determined using secondary sources and verified through primary sources.
1.2 Secondary Research
The secondary research sources that are typically referred to include, but are not limited to:
The sources for secondary research includes but is not limited to: Factiva, Hoovers and Statista
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Data is then cross checked by the expert panel.
1.4.1 Company Share Analysis Model
Company share analysis is used to derive the size of global market. As well as study of revenues of companies for last three to five years also provide the base for forecasting the market size and its growth rate. This model is built in following steps:
1.4.2 Revenue Based Modeling
Revenue based models can be built in two ways - Top-Down or Bottom-Up irrespective of industry. Market size estimated from company share analysis acts as a validation point for bottom-up approach where as it acts as starting point for top-down approach.
1.5 Research Limitations
Inflation is not a part of pricing in this report. Prices of the products and its derivatives vary in each region and hence similar revenue ratio does not follow for each individual region. The same price for each type has been taken into account while estimating and forecasting market revenue on a global basis. Regional average price has been considered while breaking down this market by end user in each region.
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