The industrial hemp market is expected to grow at a CAGR of 17.75%, reaching a market size of US$22.438 billion in 2030 from US$9.913 billion in 2025.
Cannabis sativa is characterized botanically, with the distinguishing feature referring to "industrial hemp," by quantities of tetrahydrocannabinol (THC) it contains. More than just that, the market demand is driven speedily by its versatility and burgeoning applications, such as food and beverages, diet supplements, textiles, and meals, among others. The expansion of the market is mainly driven by the increasing demand for sustainable raw materials and products to cater to different industries. Most people have now become very concerned about the environment and are therefore highly demanding in the application of hemp in bioplastics, textile, and building materials use. Legalizing the cultivation of hemp in many areas can be attributed to low environmental impacts and resource-efficient methods, which stimulate industry growth simultaneously.
Commercial cultivation of industrial hemp is gaining momentum as a sustainable crop due to the fast-increasing demand for hemp in terms of environmentally friendly crops. Hemp is an environmentally benign substitute for conventional crops, owing to its short growing cycle and little requirement for pesticides and herbicides. For example, hemp is a natural repellent to most insects, pests, and even diseases, while cotton grows on a large number of toxic pesticides.
Moreover, it is pleasing about climate change and preservation of the environment: efficient carbon retention coupled with soil nutrient restoration, little water consumption as compared to many other crops, and biomass from hemp can be transformed into many green products such as bioplastics, construction materials, or biofuels sustainable alternatives for nonrenewable energy sources. Today, nonrenewable fossil fuels such as coal, natural gas, and oil are the sources of as much as 85% of energy input at the global level. As a very bright and expanding market due to increasing emphasis on sustainability and carbon footprints worldwide, it is becoming a more viable choice to consider for a wide array of industries.
The growing applications, the advancement through innovation, and many other reasons lead to an exponential surge in market segment expansion. Among others, some industries that have adopted the use of hemp include textiles, construction, food and beverage, personal care, and pharmaceuticals. High-quality fibre extraction, seed and cannabinoids like CBD, which have a host of potential uses, are all enabled through the new advancements being made in hemp processing technologies. As a result of the increased awareness and subsequent demand from consumers for healthier foods and natural cosmetics, the presence of hemp in health foods, cosmetics, and nutraceuticals has also received a huge boost.
According to a survey conducted by Euromonitor, about 71% of Indian consumers would buy a face cream or lotion if it was marketed as natural. Thus, further prospects in the health and wellness sector are now being opened up by rising interest in CBD-based products for their therapeutic value. Of its versatility and continuous innovations, it stands as a lucrative market with space for development in several sectors.
International trade in hemp is favoured by increased demand for the product in countries where it is not legalized. Additionally, there is potential for great value addition to the market for industrial hemp globally, as it is increasingly being demanded around the world for sustainable products and is gaining wide acceptance for several possible applications such as food, medicine, and textiles. In addition, the Chinese hemp export is due to the increasing need for extra facilities for the processing of hemp fibre in other countries.
There are many different international rules that hemp and hemp-based products must comply with if they are to be considered legitimate businesses. The difficulty is that each strain of hemp is legal in different places to varying degrees, making compliance with rules rather difficult. State laws regulating hemp, especially about CBD - cannabidiol, and THC - tetrahydrocannabinol, add to the complexity. Some countries do not permit the use of hemp oil in cosmetics and personal care products. Therefore, places like the Middle East, Australia, or Spain do not yet have industrial approvals for CBD sourced from hemp.
China, India, Japan, Korea, Australia, New Zealand, and Thailand are some of the economies currently involved in the production and consumption of industrial hemp and its by-products such as fibre, seed, hurds, oil, and several others. Changing the location is being brought about by changing market demand across the globe for hemp product manufacturing, in addition to new advances in technology and innovation that continue to make harvesting easier for growers. With rising demand for hemp use via food products and supplements in developing countries with ageing populations, this market will expand further.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Industrial Hemp Market Size in 2025 | US$9.913 billion |
| Industrial Hemp Market Size in 2030 | US$22.438 billion |
| Growth Rate | CAGR of 17.75% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Industrial Hemp Market | |
| Customization Scope | Free report customization with purchase |