Market Overview

The global hemp fiber market size was valued at USD 3.03 billion in 2024. The market is projected to grow from USD 3.66 billion in 2025 to USD 16.43 billion by 2032, exhibiting a CAGR of 23.90% during the forecast period.

Fortune Business Insights™ has deep-dived into these insights in its latest research report, titled “Hemp Fiber Market, 2025-2032.”

The analysis shows that the market is experiencing significant growth, driven by supportive regulations and a global shift toward sustainability. Hemp fiber is increasingly utilized across textiles, automotive parts, construction materials, and bioplastics due to its strength, durability, and environmental benefits. This trend indicates strong demand for sustainable, plant-based alternatives worldwide.

Major Players Profiled in the Market Report:    

• HempFlax (Netherlands)
• La Chanvrière (France)
• Cavac Biomatériaux (France)
• Dun Agro Hemp Group (Netherlands)
• BAFA Neu GmbH (Germany)
• Panda Biotech (U.S.)
• IND HEMP (U.S.)
• Bast Fibre Technologies (Canada)
• Canadian Rockies Hemp Corp. – CRHC (Canada)
• Hemp Fortex (China)

Segments

Superior Material Performance and Wide Applications Lead Bast Segment Growth
Based on type, the market is segmented into bast, hurd/shives, tow, and others. The bast segment captured the largest market share in 2024. This is due to bast fibers containing higher cellulose and less lignin, making them stronger, longer, and more suitable for high-performance applications such as textiles, technical textiles, and composites.

Growing Preference for Natural and Sustainable Textiles Propelled Textile and Apparel Segment Growth
By end-use, the market is segmented into textiles & apparel, composites, pulp & paper, bioplastics & additives, and others. The textile and apparel segment dominates the market, supported by increasing consumer demand for natural and sustainable materials. The durability of hemp and its eco-friendly cultivation process make it a preferred choice for apparel and denim.

Geographically, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Report Coverage

The report offers:

• Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
• Comprehensive insights into regional developments.
• List of major industry players.
• Key strategies adopted by the market players.
• The latest industry developments include product launches, partnerships, mergers, and acquisitions.

Source: https://www.fortunebusinessinsights.com/hemp-fiber-market-113975

Drivers & Restraints

Supportive Regulations and Legalization to Propel Market Growth
The legalization of industrial hemp in key markets such as North America, Europe, and Asia Pacific has allowed for expanded cultivation and production. Supportive government policies, such as South Africa declaring hemp an agricultural crop and the U.S. Farm Bill, are driving market growth by enabling legal and regulated value chains across a wide range of industries.

However, high processing and production costs may restrict market expansion. Hemp fiber requires complex processing, and the lack of sufficient mechanization and infrastructure demands substantial capital investment, limiting adoption, particularly among smaller players.

Regional Insights

Mature Infrastructure and Governmental Backing to Drive Market Growth in Asia Pacific
Asia Pacific holds the dominant hemp fiber market share, with a 39.6% share in 2024, and is projected to experience significant growth. The region’s growth is attributed to its mature agricultural infrastructure, extensive cultivation, and strong governmental backing, particularly in China and India. China is a major producer and exporter, supplying approximately half of the world's hemp fibers.

Europe is another key region, with growth aided by strict environmental policies and EU-wide encouragement for bio-based inputs. National initiatives in countries such as France, Germany, and the Netherlands support hemp cultivation and innovative uses.

Hemp Fiber Market Future Growth:

The hemp fiber market is set for robust growth, fueled by the global trend toward sustainability and the circular economy. Today's consumers and industries are increasingly drawn to hemp as an eco-friendly alternative to cotton and polyester, as it uses less water, requires fewer pesticides, and sequesters significant amounts of CO₂. Investment in startups is creating new business opportunities, with companies like BASF backing innovators to speed up the development of hemp materials for industrial use. The expansion of hemp into new applications, including high-performance composites, bioplastics, and sustainable construction, is also a key growth driver. While Asia Pacific continues to dominate, North America and Europe are seeing a surge in demand driven by favorable legislation and strong environmental initiatives.

Competitive Landscape

Geographic Presence & Expansion Supported their Leading Position
The market features prominent players such as HempFlax Group B.V., Dun Agro Hemp Group, and others. These leading companies are accelerating growth by innovating to enhance fiber quality and processing techniques, diversifying product offerings, and expanding their geographic presence in North America, Europe, and Asia-Pacific to leverage agricultural potential and favorable regulatory environments.

Key Industry Development

• March 2025: Ekolution AB, a Swedish company, developed environmentally friendly building materials with a focus on hemp fiber insulation. The new innovation offered excellent thermal performance and actively contributed to carbon sequestration, addressing the pressing need for eco-conscious construction solutions.