Industrial Hemp Market to Hit USD 82.05 Billion by 2032, Growing at a 22.5% CAGR (2024-2032), Driven by Rising CBD Demand

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Industrial Hemp Market Size was valued at USD 10.78 Billion in 2024. The Industrial Hemp market industry is projected to grow from USD 13.21 Billion in 2025 to USD 82.05 Billion by 2034, exhibiting a compound annual growth rate (CAGR) of 22.5% during the forecast period (2025 – 2034). Increasing demand for CBD is the key market drivers enhancing the market growth.

The industrial hemp market has experienced a remarkable transformation over the past decade, evolving from a niche sector to a burgeoning global industry. This growth is driven by increasing recognition of hemp’s versatility, sustainability, and economic potential across various applications.

Market Drivers

Several factors contribute to the rapid expansion of the industrial hemp market:

1. Legalization and Regulatory Support: Many countries have revised their regulations to permit hemp cultivation and processing, recognizing its economic and environmental benefits. This shift has opened new markets and encouraged investment in hemp-related industries.
2. Demand for Sustainable Products: Consumers and industries are increasingly seeking eco-friendly alternatives. Hemp’s low environmental impact, including its ability to sequester carbon and improve soil health, makes it an attractive option for sustainable products.
3. Diverse Applications: Hemp’s versatility spans multiple industries. Its fibers are used in textiles and construction materials; seeds and oils find applications in food, beverages, and personal care products; and cannabinoids like CBD are incorporated into pharmaceuticals and wellness products.

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Segmentation Analysis

The industrial hemp market is segmented based on type, source, application, and region:

• By Type: Key categories include hemp seed, hemp seed oil, CBD hemp oil, hemp bast, and hemp hurd. In 2022, the hemp seed oil segment dominated the market, attributed to its nutritional benefits and applications in food and personal care products.

• By Source: The market is divided into conventional and organic sources. The organic segment has seen significant growth, driven by consumer preference for organic products and sustainable farming practices.

• By Application: Applications encompass food and beverages, textiles, pharmaceuticals, personal care products, animal nutrition, paper, construction materials, and others. The textiles segment generated the most revenue in 2022, reflecting hemp’s resurgence in the fabric industry due to its durability and environmental benefits.

Leading Brands in the Industrial Hemp Market:

• Marijuana Company of America Inc. (US)
• Cronos Group Inc. (Canada)
• Ecofibre Limited (Australia)
• Green Thumb Industries (US)
• Curaleaf Holdings Inc. (US)
• GenCanna (US)
• HempFlax BV (Netherlands)
• Konoplex Group (Russia)
• Hemp Oil Canada (Canada)
• BAFA (Germany)
• Dun Agro Hemp Group (Netherlands)
• Colorado Hemp Works (US)
• Canah International (Romania)
• South Hemp Tecno (Italy)
• MH Medical Hemp GmbH (Germany)

Regional Insights

Geographically, the industrial hemp market is analyzed across North America, Europe, Asia-Pacific, and the Rest of the World:

• North America: This region leads the market, bolstered by favorable legislation and growing consumer interest in hemp-derived products. The U.S., in particular, has seen a surge in hemp cultivation following the legalization under the Farm Bill.
• Europe: Holding the second-largest market share, Europe’s growth is driven by increasing demand for sustainable products and supportive regulatory frameworks. Countries like France and Germany are prominent producers, with extensive cultivation areas dedicated to hemp.

• Asia-Pacific: Projected to experience the fastest CAGR from 2023 to 2032, this region’s growth is fueled by rising consumer interest in natural health products and traditional uses of hemp in countries like China and India.

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Industrial Hemp Industry Developments

December 2021: Green Thumb Industries Inc. purchased Leafline Industries. As one of only two approved cultivators in the Minnesota medical cannabis industry, Leafline is licensed to grow, process, and distribute cannabis directly to patients. With this acquisition, the corporation expands its market footprint into Minnesota.

September 2021: CBD Capital Ltd, the leading provider of CBD distillate, isolate, and water-soluble bulk ingredients, as well as white and private label services to the United Kingdom, European Union, and global markets has been acquired by GenCanna. CBD Capital also brings with it several sub-brands, which will now benefit from accelerated product development and market expansion as more resources are devoted to them. CBD Capital’s acquisition broadens and solidifies GenCanna’s leadership position in high-growth CBD markets in the United Kingdom, Europe, and the rest of the world.

March 2021: Curaleaf Holdings Inc. acquired Emmac Life Sciences, a European marijuana startup, for $286 million. Curaleaf’s geographic reach would expand to eight countries, including Portugal, Spain, Germany, Italy, and the United Kingdom.

Industry Challenges

Despite the positive trajectory, the industrial hemp market faces challenges:

• Regulatory Variability: Inconsistent regulations across countries and regions can create barriers to trade and complicate compliance for producers and processors.
• Stigma and Misconceptions: Associations with psychoactive cannabis varieties have led to misconceptions about hemp, affecting consumer acceptance and policy development in certain areas.
• Supply Chain Limitations: Developing efficient supply chains for hemp processing and distribution requires significant investment and coordination, which can be a hurdle for market entrants.

Future Outlook

The future of the industrial hemp market appears promising, with several trends likely to shape its evolution:

• Product Innovation: Ongoing research into hemp’s properties is expected to lead to new applications, particularly in bioplastics, construction materials, and pharmaceuticals.
• Expansion of Cultivation Areas: As more regions recognize hemp’s economic potential, cultivation is anticipated to expand, leading to increased supply and potentially lower costs.
• Integration into Circular Economies: Hemp’s sustainability credentials position it well within circular economy models, promoting waste reduction and resource efficiency.

Frequently Asked Questions (FAQ):

How much is the Industrial Hemp market?

The Industrial Hemp Market size was valued at USD 8.80 Billion in 2023.

What is the growth rate of the Industrial Hemp market?

The global market is projected to grow at a CAGR of 22.5% during the forecast period, 2025-2034.

Which region held the largest market share in the Industrial Hemp market?

North America had the largest share in the global market

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