Global Industrial Hemp Market Insights Forecasts to 2033

• The Global Industrial Hemp Market Size was Valued at USD 5.38 Billion in 2023
• The Market Size is Growing at a CAGR of 16.27% from 2023 to 2033
• The Worldwide Industrial Hemp Market Size is Expected to Reach USD 24.30 Billion by 2033
• North America is Expected to Grow the fastest during the forecast period.

The Global Industrial Hemp Market Size is Anticipated to Exceed USD 24.30 Billion by 2033, Growing at a CAGR of 16.27% from 2023 to 2033.

Market Overview

Industrial hemp is a herb derived from a strain of Cannabis sativa that is used to manufacture a wide range of consumer and industrial products. It also contains fiber, seeds, and oil. These consist of food, nutritional supplements, paper, fibers, building supplies, soap, textiles, and cosmetics. While both industrial hemp and marijuana are members of the same species, Cannabis sativa, the industrial hemp variety has much lower concentrations of delta-9-THC, the primary active ingredient in marijuana that gives psychoactive properties. Cannabis sativa has diverse uses, regulations for growth, and genetic and chemical compositions for industrial hemp and marijuana. A sufficient quantity of CBD oil is present in hemp, which is beneficial for its many therapeutic qualities and aids in the treatment of illnesses including diabetes, cancer, and pain. These benefits drive the market. The market for industrial hemp is expanding due to, its faster to produce, being more environmentally friendly, and many other advantageous qualities. Hemp stalks are being used in the modern world to provide ethanol for automobiles. Given that hemp might be utilized for a variety of functions, including seeds, stalks, roots, and leaves, it is a profitable and sustainable crop. It works incredibly well as the main ingredient base for personal care products due to its inflammatory qualities. A low-cost, clean, and sustainable substitute for the fossil fuel-dependent modern economy is industrial hemp. It generates far fewer carbon emissions, which benefits the economy and the environment. These are the key factors of hemp that lead to further expansion in the market.

Report Coverage

This research report categorizes the market for the global industrial hemp market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global industrial hemp market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global industrial hemp market.

Driving Factors

Demand from industries like personal care, recycling, agriculture, automotive, textiles, furniture, food & beverage, paper, and construction materials is driving the expansion of the global market. Growing in prominence as an environmentally friendly crop with many environmental advantages, industrial hemp is undergoing rapid commercial expansion. Compared to conventional crops, hemp proliferates and requires fewer pesticides and herbicides, making it a more environmentally friendly crop. Its attractiveness in climate change and environmental conservation is increased by its capacity to restore soil nutrients, effectively absorb carbon, and use less water than many other crops. Furthermore, the biomass from hemp might be processed into a range of environmentally beneficial goods, such as biofuels, construction materials, and bioplastics, offering a sustainable substitute for finite resources. The increased emphasis on sustainability and lowering carbon footprints worldwide is making it a more desirable option for various sectors, which is driving market expansion.

Restraining Factors

The production and distribution of hemp are governed by various laws and regulations, and the use of hemp as a consumer product is outlawed in several nations. The government's strict rules regarding the manufacture, distribution, and cultivation of hemp thereby restrict the market's ability to flourish. Many banks are unwilling to offer banking services to companies in the hemp sector because of the legal ambiguities surrounding cannabis and hemp. For hemp-related businesses, this absence of banking services might cause major challenges, making it difficult for them to get financing, handle payments, and handle their financial resources these factors hamper the growth of the industrial hemp market.

Market Segmentation

The global industrial hemp market share is segmented into product, application, and source.

The seeds segment dominates the market with the largest market share through the forecast period.

Based on the product, the global industrial hemp market is segmented into seeds, fiber, and shivs. Among these, the seeds segment dominates the market with the largest market share through the forecast period. Since these seeds contain all nine essential amino acids, they are considered a complete protein source. Hemp seeds contain significant levels of omega-3 fatty acids and a favorable ratio of omega-3 to omega-6 fatty acids. Applications for hemp seed oil are numerous and include food and drink, personal hygiene, animal feed, nutritional supplements, pharmaceuticals, and other items. Cannabis sativa plants, which are used for their intoxicating qualities, are the source of hemp seeds. These small brown seeds are a great source of protein, fiber, and other good fats including omega-3 and omega-6. Their antioxidant properties strengthen the skin, joints, and heart in addition to potentially easing the symptoms of many illnesses. Therefore, the seed segment is expanding as a result of the growing demand for hemp seed oil in consumer care products.

The textiles segment is anticipated to grow at the fastest CAGR growth through the forecast period.

Based on the application, the global industrial hemp market is segmented into textiles, automotive, animal care, furniture, food & beverages, pharmaceuticals, and others. Among these, the textiles segment is anticipated to grow at the fastest CAGR growth through the forecast period. The strongest fiber utilized in the production of textiles is hemp fiber. It is visibly harder and more reliable than cotton, and it offers excellent ultraviolet (UV) protection compared to other fabrics comprised of natural fibers. Furthermore, hemp meets nearly all of the criteria required to be classified as sustainable. Its naturally existing hypoallergenic, antiviral, antibacterial, and antimicrobial qualities are advantageous to farmers since they enable a more ecologically friendly growing environment with a much-reduced need for fertilizers and pesticides. It is commonly acknowledged that soil regeneration is more efficient than cotton growth, requiring less water during growth and leaving the land in a better state.

The conventional segment accounted for the largest revenue share through the forecast period.

Based on the source, the global industrial hemp market is segmented into conventional and organic. Among these, the conventional segment accounted for the largest revenue share through the forecast period. Due to its extremely resilient nature, hemp doesn't require special or organic treatments to generate a considerable harvest that can resist harsh weather conditions. When hemp is sourced using either the conventional or organic process, there is virtually no difference in terms of yield and quality. However, the organic process results in higher prices. As a consequence, the majority of cultivators like growing industrial hemp the conventional way, which drives the market's expansion.

Regional Segment Analysis of the Global Industrial Hemp Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the global industrial hemp market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the global industrial hemp market over the predicted timeframe. Asia Pacific is the world's leading producer and consumer of industrial hemp and its byproducts, which include oil, seeds, fiber, and herbs. China, India, Japan, Korea, Australia, New Zealand, and Thailand are all actively involved in the production of industrial hemp. The growing demand for hemp products worldwide, combined with technological and innovative breakthroughs, is simplifying the harvesting process for farmers and changing the landscape of hemp farming in the area. The growing use of hemp-based food products and supplements in developing economies with an aging population is anticipated to propel the regional market during the forecast period.

North America is expected to grow at the fastest CAGR growth of the global industrial hemp market during the forecast period. In North America, the personal care sector, growing senior population, rising levels of disposable income, and growing consequences about skin conditions and UV protection are all projected to fuel demand for hemp oil. The industrial hemp market in the region is expanding more quickly owing to the expansion of production and distribution operations in the area as well as the increased investments in R&D efforts to further the development of industrial hemp. Entrepreneurs and investors are attracted to the hemp business by the capital and investment opportunities that are readily accessible in the United States. This makes it possible for businesses to grow their operations, make R&D investments, and increase production.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global industrial hemp market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Parkland Industrial Hemp Growers Cooperative Ltd.
• CBD Biotechnology Co.
• Botanical Genetics
• Marijuana Company
• HempMeds
• Terra Tech Corp.
• American Cannabis Company
• HempFlax B.V.
• Industrial Hemp Manufacturing
• American Hemp
• Boring Hemp Company 
• Plains Industrial Hemp Processing Ltd.
• Ecofiber Industries Operations
• Valley Bio Limite
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In March 2024, To introduce the new hemp smokeables, Coast Smokes collaborated with Willie's Remedy, the renowned hemp brand owned by Willie Nelson. Willie's historic switch from cigarettes to cannabis was significantly helped by the introduction. The three CBD vapes—Elevate, Chill, and Slumber—combined with biodegradable filters to create organic hemp smoke.

• In January 2023, Two new broad-spectrum products were introduced by HempMeds Brazil. These new items were developed in response to the evolving needs of Brazilian physicians who plan to recommend them to their patients.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global industrial hemp market based on the below-mentioned segments: 

Global Industrial Hemp Market, By Product

• Seeds
• Fiber
• Shivs

Global Industrial Hemp Market, By Application

• Textiles
• Automotive
• Animal Care
• Furniture
• Food & Beverages
• Pharmaceuticals
• Others

Global Industrial Hemp Market, By Source

• Conventional
• Organic

Global Industrial Hemp Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa