The global industrial hemp market size was estimated at USD 5.49 billion in 2023 and is projected to reach USD 16.82 billion by 2030, growing at a CAGR of 17.5% from 2024 to 2030. The primary driver behind this growth is the increasing demand for hemp-based products across various application industries worldwide, including food and beverage, personal care, and animal care sectors.

The rising consumption of a diverse range of hemp-derived products—such as fiber, seeds, stalks, hurds, and oils—within these industries is expected to significantly boost the market’s growth trajectory. Industrial hemp cultivation offers several notable agricultural and environmental advantages, making it an increasingly attractive crop for farmers and manufacturers alike. One key benefit is its relatively fast growth cycle, which typically ranges between 120 to 150 days, allowing for efficient land use and multiple harvests within a year in some regions.

Furthermore, hemp produces a substantial biomass yield, which supports its role in sustainable agriculture by maximizing output per unit area of land. This high biomass production also contributes to effective carbon sequestration, as the plant absorbs and stores significant amounts of carbon dioxide from the atmosphere. Additionally, incorporating hemp into crop rotations can provide a beneficial break, improving soil health and reducing pest and disease cycles in agricultural systems. Together, these factors position industrial hemp as a versatile and eco-friendly crop that supports both market growth and environmental sustainability.

Key Market Trends & Insights:

• Asia Pacific stands out as one of the leading consumers of industrial hemp globally, accounting for a significant revenue share of more than 33% in 2023. This highlights the region’s important role in driving demand for hemp products, supported by expanding industrial activities and increasing adoption across various sectors within the area.

• When examining the market based on product categories, the hemp seeds segment emerged as the market leader in 2023. This segment captured over 29.97% of the total global revenue, underscoring the widespread use and popularity of hemp seeds in numerous applications such as food, nutrition, and health products worldwide.

• In terms of application, the textile sector dominated the industrial hemp market in 2023. The extensive use of hemp fibers in textile manufacturing, owing to their sustainability, durability, and eco-friendly properties, contributed to the segment’s leading position. The growing demand for sustainable and natural fabrics in fashion and home furnishings continues to propel the textile application segment forward within the industrial hemp market.

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Market Size & Forecast:

• 2023 Market Size: USD 5.49 Billion

• 2030 Projected Market Size: USD 16.82 Billion

• CAGR (2024-2030): 17.5%

• Asia-Pacific: Largest Market in 2023

Key Companies & Market Share Insights:

Industry players in the industrial hemp market are engaged in the production of large quantities of high-quality hemp, offering a diverse range of variants that differ in seed size and oil composition. Key factors such as potential yields, processing methods, and the technologies employed in processing, along with production costs and the resulting returns, significantly influence the competitive dynamics within the industry. To capitalize on growing demand, companies are focusing on expanding both cultivation and processing facilities, particularly in countries where the legal framework supports hemp farming.

Major players in the industrial hemp sector are heavily investing in research and development efforts aimed at optimizing cultivation techniques to achieve higher yields. These investments enable them to develop and offer a wide variety of hemp-derived products, allowing them to penetrate and serve larger markets more effectively.

For example, in January 2023, HempMeds Brasil introduced two new full-spectrum hemp products. These products were specifically developed to meet the evolving needs of Brazilian healthcare professionals who intend to recommend hemp-based treatments to their patients, reflecting the company’s commitment to adapting to regional market requirements.

In another instance, in October 2021, HempFlax Group announced a substantial investment of approximately USD 3.2 million aimed at upgrading its headquarters in the Netherlands. Out of this investment, around USD 1.9 million was allocated to improving machinery, which is expected to double the company’s hemp fiber processing capacity from 3 tons per hour to 6 tons per hour. These technological upgrades are projected to reduce the company’s daily operational hours from 24 to 16, which will not only lower energy consumption but also enhance overall productivity.

Key Players

• Parkland Industrial Hemp Growers Cooperative Ltd.

• CBD Biotechnology Co.

• Botanical Genetics, LLC

• Marijuana Company of America Inc.

• HempMeds Brasil

• Terra Tech Corp.

• American Cannabis Company, Inc.

• HempFlax B.V.

• Industrial Hemp Manufacturing, LLC

• American Hemp

• Hemp, Inc.

• Boring Hemp Company

• Plains Industrial Hemp Processing Ltd.

• Ecofiber Industries Operations

• Valley Bio Limited

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Conclusion:

The industrial hemp market is experiencing robust growth driven by increasing demand across various application industries such as food and beverage, personal care, and textiles. The crop’s agricultural and environmental benefits, including fast growth and sustainability, are further supporting market expansion. Advancements in processing technologies, along with favorable regulations in key regions, are encouraging investments and product innovation. As a result, the market is expected to continue its strong upward trajectory with growing adoption globally.