Industrial Hemp Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Industrial Hemp Market size was estimated at USD 11,380 million in 2024 and is projected to reach USD 43,945.7 million in 2031 at a CAGR of 21.29 % during the forecast period 2025-2031.

The industrial hemp market is an expanding sector within the global agricultural and manufacturing industries, centered on the cultivation of hemp plants for various industrial applications. Industrial hemp is a versatile crop, known for its strong fibers and seeds, which can be processed into a wide range of products, including textiles, bioplastics, construction materials, food, and health supplements. As a non-psychoactive variety of the cannabis plant, it has gained recognition for its sustainability and eco-friendly properties, making it an attractive alternative to traditional raw materials in numerous industries.

The scope of the industrial hemp market includes its use in textiles, paper, building materials, biofuels, personal care products, and more. The agricultural and manufacturing sectors are the primary drivers of demand for industrial hemp, with its fibrous stalks being utilized in everything from clothing to eco-friendly construction materials. Additionally, the growing trend towards sustainable and organic products in food, cosmetics, and wellness products has led to the expanded use of hemp seeds and oil. With increasing legalization and changing regulations around cannabis, industrial hemp has become more accessible for farmers and businesses worldwide.

Recent trends in the industrial hemp market include advancements in cultivation techniques and processing technologies aimed at improving product quality and reducing costs. Hemp-based materials are increasingly being incorporated into high-performance products, such as biodegradable plastics and carbon-neutral construction materials, which align with the global shift towards sustainability. Moreover, the wellness and nutraceutical industries are seeing significant growth in the use of hemp-derived products, such as CBD oil, which are marketed for their potential health benefits.

Several drivers are contributing to the growth of the industrial hemp market. The rising demand for sustainable, renewable, and eco-friendly materials is a significant factor, as industries seek alternatives to environmentally harmful practices. Legislative changes and the relaxation of regulations surrounding hemp cultivation, especially in countries like the U.S. and Canada, have also spurred market expansion. Additionally, increased consumer interest in natural and plant-based products, particularly in food, beverages, and wellness, is boosting the demand for hemp-based ingredients and products. As hemp's potential continues to be explored, technological advancements and innovation are expected to drive further growth in the industry.

Delvens Industry Expert's Standpoint

Experts in the Industrial Hemp Market highlight several key trends driving growth and innovation. The industrial hemp market is growing as a sustainable and versatile alternative across various industries, including textiles, construction, food, and wellness. Known for its non-psychoactive properties, industrial hemp is used in a wide range of eco-friendly products such as bioplastics, textiles, and health supplements. The market is driven by increasing consumer demand for environmentally conscious materials, legislative changes that support hemp cultivation, and advancements in processing technologies. Additionally, the rise in popularity of hemp-derived wellness products like CBD oil is further fuelling its expansion, with innovation and sustainability at the forefront of the market's development.

Market Portfolio

Key Findings

• The textiles segment is expected to dominate the industrial hemp market during the forecast period, driven by the exceptional properties of hemp fibers, such as strength, breathability, and eco-friendliness. Hemp fibers are increasingly used in sustainable textile materials for clothing, home furnishings, and upholstery, as manufacturers respond to consumer demand for environmentally conscious products. Hemp cultivation also requires fewer resources, like water and pesticides, compared to crops such as cotton, making it a highly sustainable option for textiles. Initiatives like Hemp4Circularity, backed by the European Union with funding through the Interreg program, are further driving growth in the hemp textile market. The project, launched in June 2023, focuses on creating a local long-fiber hemp textile industry in Europe with partners in Belgium, the Netherlands, and Germany. With significant land allocations in Europe for hemp cultivation, this initiative underscores hemp’s growing importance in shaping a sustainable and circular textile economy.

• Hemp seed oil is also poised to capture a significant share of the industrial hemp market, thanks to its diverse applications. Extracted from cold-pressed hemp seeds, hemp seed oil is a nutrient-dense oil with essential fatty acids and omega-3s. Unlike CBD oil, hemp seed oil contains no THC and only trace amounts of CBD, making it non-psychoactive. Hemp seed oil is widely used in food products, culinary applications, and beauty formulations due to its health benefits. The oil is produced using mechanical extraction methods, with hemp seed cake as a by-product, which can be used as animal feed. As extraction technologies improve, the quality and yield of hemp seed oil have increased, aligning with global sustainability efforts. With its growing use in food, beauty, and industrial sectors, hemp seed oil continues to drive expansion in the industrial hemp market.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Asia Pacific region is projected to hold the largest market share. Factors such as Rising Demand for Sustainable Products, Legalization and Regulatory Support, Advancements in Hemp Applications, Government Initiatives and Funding, Consumer Interest in CBD Products have triggered the Industrial Hemp Market in the region.

Regional Analysis

Asia Pacific to Dominate the Market

• Asia Pacific is a leading consumer of industrial hemp, holding a significant share of the global market. Countries like China, India, Japan, Korea, Australia, New Zealand, and Thailand are deeply engaged in the production and consumption of various industrial hemp products, including fiber, seed, hurds, and oil. As global demand for these products increases, along with advancements in harvesting technologies and innovations, the region's hemp production is evolving. The growing consumption of hemp-based food products and supplements, particularly in developing economies with an aging population, is expected to further drive market growth.

• North America remains a major consumer of industrial hemp, with its applications spreading across various industries. Rising disposable incomes, an aging population, and increasing concerns about skin health and UV protection are expected to boost the demand for hemp oil, particularly in the personal care industry.

• In Europe, industrial hemp is predominantly consumed in industries like automotive, construction, textiles, and fabrics, where it is used in the form of fibers. However, the growing demand for hemp oil in the food and supplements, cosmetics, and personal care sectors is anticipated to drive further market growth.

Competitive Landscape

• Curaleaf Holdings, Inc.
• Green Thumb Industries
• Canopy Growth Corporation
• AURORA CANNABIS INC.
• The Cronos Group
• Ecofibre Ltd
• HempFlax Group B.V.
• Dun Agro Hemp Group
• Fresh Hemp Foods Ltd.
• GenCanna
• Konoplex Group
• Canah International
• MH Medical Hemp GmbH
• Liaoning Qiaopai Biotech Co., Ltd.
• IND HEMP
• South Hemp Tecno
• HemPoland
• Colorado Hemp Works, INC
• BOMBAY HEMP COMPANY PVT. LTD.
• Parkland Industrial Hemp Growers Coop Ltd.
• American Hemp LLC
• Hemp Foundation
• Blue Sky Hemp Ventures Ltd.
• Valley Bio Limited
• East Mesa Inc.

Recent Developments

• In October 2024, Canopy Growth Corporation acquired Wana, which includes Wana Wellness, LLC, The CIMA Group, LLC, and Mountain High Products, LLC. As a result of this acquisition, Canopy USA now fully owns Wana’s equity interests. This move strengthens the company’s position in building a leading brand-focused cannabis business in the U.S.

• In October 2024, Aurora Cannabis Inc. expanded its range of premium medical cannabis oils in Australia in collaboration with MedReleaf Australia. The new products, designed to address diverse patient needs, include Aurora THC 25 (Sativa), Aurora THC 25 (Indica), Aurora 12.5:12.5 oil, Aurora 50:50 oil, and Aurora 10:100 oil, all available in 30 ml bottles for physician prescriptions.

• In June 2024, Curaleaf Holdings, Inc. introduced new hemp-derived THC products under its Select and Zero Proof brands. These products will be available in 25 states and the District of Columbia through direct-to-consumer delivery and Curaleaf’s national distribution network.

• In May 2024, The Cronos Group teamed up with GROW Pharma, a leading medicinal cannabis distributor in the UK, to expand its PEACE NATURALS brand into the UK market. This partnership will allow Cronos to supply premium, high-quality cannabis products, providing UK patients access to the globally recognized PEACE NATURALS brand.

Reasons to Acquire

• In October 2024, Canopy Growth Corporation acquired Wana, which includes Wana Wellness, LLC, The CIMA Group, LLC, and Mountain High Products, LLC. As a result of this acquisition, Canopy USA now fully owns Wana’s equity interests. This move strengthens the company’s position in building a leading brand-focused cannabis business in the U.S.
• In October 2024, Aurora Cannabis Inc. expanded its range of premium medical cannabis oils in Australia in collaboration with MedReleaf Australia. The new products, designed to address diverse patient needs, include Aurora THC 25 (Sativa), Aurora THC 25 (Indica), Aurora 12.5:12.5 oil, Aurora 50:50 oil, and Aurora 10:100 oil, all available in 30 ml bottles for physician prescriptions.
• In June 2024, Curaleaf Holdings, Inc. introduced new hemp-derived THC products under its Select and Zero Proof brands. These products will be available in 25 states and the District of Columbia through direct-to-consumer delivery and Curaleaf’s national distribution network.
• In May 2024, The Cronos Group teamed up with GROW Pharma, a leading medicinal cannabis distributor in the UK, to expand its PEACE NATURALS brand into the UK market. This partnership will allow Cronos to supply premium, high-quality cannabis products, providing UK patients access to the globally recognized PEACE NATURALS brand.

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