Industrial Hemp Market Size, Share and Trends 2026 to 2035

According to MarketnReports, the global Industrial Hemp Market size was estimated at USD 7.14 billion in 2025 and is expected to reach USD 40.65 billion by 2035, growing at a CAGR of 19% from 2026 to 2035. Industrial Hemp Market is driven by increasing legalization of cultivation and rising demand for sustainable products across industries.

What are the Key Insights of the Industrial Hemp Market?

  • The global market size was valued at USD 7.14 billion in 2025 and is projected to reach USD 40.65 billion by 2035.
  • The market is expected to grow at a CAGR of 19% during the forecast period from 2026 to 2035.
  • The market is driven by legalization of hemp cultivation, growing demand for sustainable products, and expanding applications in food, textiles, and pharmaceuticals.
  • Among product types, seeds dominate with a 30% share due to high nutritional value and versatility in food and supplements; fiber follows as the second dominant with 28% share, driven by demand in eco-friendly textiles and construction.
  • Among applications, food & beverages dominate with a 35% share owing to rising health consciousness and incorporation in functional foods; textiles are the second dominant with 25% share, supported by sustainable fashion trends.
  • Among sources, conventional dominates with a 70% share because of cost-effectiveness and established cultivation practices; organic is the second dominant with 30% share, appealing to premium markets focused on clean-label products.
  • Asia Pacific holds the dominant regional share at 35%, attributed to large-scale production in China and increasing exports to global markets.

What is the Industrial Hemp Market?

The Industrial Hemp Market refers to the cultivation, processing, and commercialization of hemp plants (Cannabis sativa L.) with low THC content (below 0.3%), utilized for non-psychoactive purposes such as fiber production, seed-based foods, oils, and biomaterials. This market encompasses a versatile crop known for its rapid growth, minimal resource requirements, and applications in sustainable alternatives to traditional materials, promoting environmental benefits like soil remediation and carbon sequestration. Market definition includes all industrial applications of hemp excluding recreational or high-THC variants, driven by global shifts toward eco-friendly products in sectors like textiles, food, construction, and pharmaceuticals.

What are the Market Dynamics of the Industrial Hemp Market?

Growth Drivers

The legalization of industrial hemp cultivation in major economies, such as the U.S. through the 2018 Farm Bill and similar policies in Europe and Asia, has removed historical barriers, enabling expanded production and attracting investments in processing infrastructure. This regulatory shift is complemented by growing consumer demand for sustainable and eco-friendly products, where hemp's low water usage, rapid growth cycle, and biodegradability position it as a superior alternative to synthetic materials in textiles, plastics, and construction. Advancements in breeding and extraction technologies further enhance yield quality and efficiency, supporting diverse applications from nutritional supplements to biofuels, thereby driving market expansion across global supply chains.

Restraints

Inconsistent regulatory frameworks across regions create compliance challenges, with varying THC limits and licensing requirements deterring international trade and investment, particularly in conservative markets where hemp is still associated with cannabis. High initial costs for cultivation and processing equipment, coupled with the need for specialized knowledge, limit entry for small-scale farmers in developing areas. Additionally, supply chain vulnerabilities, including weather-dependent harvests and limited processing facilities, result in price volatility and quality inconsistencies, hindering scalable adoption in price-sensitive industries.

Opportunities

The rising emphasis on circular economies presents opportunities for hemp in bioplastics and composites, where partnerships with automotive and packaging sectors can develop innovative, recyclable materials to meet stringent environmental regulations. Expanding research into hemp's medicinal properties, beyond CBD, opens avenues in pharmaceuticals and nutraceuticals, supported by clinical trials demonstrating benefits in anti-inflammatory and neuroprotective applications. Government subsidies for sustainable agriculture in emerging markets like India and Brazil further enable infrastructure development, fostering new cultivation hubs and export potential.

Challenges

Stigmatization linked to cannabis misconceptions persists, affecting consumer acceptance and financing, as banks remain cautious despite legal distinctions, slowing capital inflow for expansion. Climate variability poses risks to crop yields, requiring resilient varieties and adaptive farming practices that increase R&D costs. Moreover, competition from established materials like cotton and synthetic fibers demands continuous innovation in cost reduction and performance enhancement to achieve market parity in high-volume sectors.

Industrial Hemp Market: Report Scope

Report Attributes Report Details
Report Name Industrial Hemp Market
Market Size 2025 USD 7.14 Billion
Market Forecast 2035 USD 40.65 Billion
Growth Rate CAGR of 19%
Report Pages 220
Key Companies Covered

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, and Others.
Segments Covered By Product Type, By Application, By Source, and By Region.
Regions Covered North America, Europe, Asia Pacific (APAC), Latin America, and The Middle East and Africa (MEA)
Base Year 2025
Historical Year 2020 - 2024
Forecast Year 2026 - 2035
Customization Scope Avail customized purchase options to meet your exact research needs.

What is the Market Segmentation of the Industrial Hemp Market?

The Industrial Hemp Market is segmented by product type, application, source, and region.

By Product Type Segment. Seeds dominate this segment with a 30% share, as they offer high nutritional content rich in proteins and essential fatty acids, driving market growth through demand in health foods and supplements that promote wellness trends globally. Fiber is the second most dominant with 28% share, contributing to market expansion by providing sustainable alternatives in textiles and construction, reducing environmental impact and supporting eco-friendly manufacturing.

By Application Segment. Food & beverages dominate with a 35% share, propelled by incorporation in functional foods and drinks for their health benefits, accelerating market growth via rising consumer preference for natural ingredients. Textiles are the second most dominant with 25% share, boosting the market through durable, breathable fabrics that align with sustainable fashion demands.

By Source Segment. Conventional dominates with a 70% share, favored for lower production costs and higher yields, which drive market growth by enabling affordable access in mass-market applications. Organic is the second most dominant with 30% share, aiding market progression by catering to premium consumers seeking pesticide-free products.

What are the Recent Developments in the Industrial Hemp Market?

  • In April 2025, the USDA reported a 55% increase in harvested hemp area to 32,694 acres, with floral hemp production surging 159% due to improved yields and cultivation techniques.
  • In May 2025, Curaleaf Holdings expanded its hemp-derived CBD product line, partnering with retailers to enhance distribution amid growing wellness demand.
  • In July 2025, Ecofibre Ltd announced investments in bioplastic innovations using hemp fiber, targeting sustainable packaging solutions.
  • In September 2025, HempFlax Group B.V. launched new textile products, emphasizing eco-friendly fabrics for the fashion industry.
  • In November 2025, GenCanna acquired processing facilities to boost seed oil production, responding to food sector needs.

What is the Regional Analysis of the Industrial Hemp Market?

Asia Pacific to dominate the global market.

Asia Pacific leads the market with a 35% share, driven by extensive cultivation and export capabilities; China dominates within the region due to its massive production scale and government support for fiber and seed exports, fueling global supply chains.

North America holds a significant share, supported by legalization and innovation in CBD products, with the U.S. leading through the 2018 Farm Bill enabling widespread adoption in wellness and food sectors.

Europe is growing steadily, fueled by sustainable policies and textile demand, with France dominating as the largest producer emphasizing organic hemp for construction and fashion.

Latin America shows emerging potential, driven by agricultural reforms in Brazil and Colombia, where Brazil leads with investments in biofuels and textiles amid environmental initiatives.

The Middle East and Africa (MEA) region is expanding gradually, with South Africa and Morocco advancing cultivation, where South Africa dominates through export-oriented fiber production supported by trade agreements.

What are the Key Market Players and Strategies in the Industrial Hemp Market?

Curaleaf Holdings, Inc. focuses on expanding CBD product lines through acquisitions and retail partnerships, emphasizing quality control and compliance to capture wellness markets.

Green Thumb Industries invests in vertical integration for seed-to-sale operations, leveraging technology for efficient cultivation and targeting food and beverage applications.

Canopy Growth Corporation prioritizes R&D in cannabinoid extraction, collaborating with pharmaceutical firms to develop health supplements and expand globally.

AURORA CANNABIS INC. advances sustainable farming practices, focusing on organic hemp for personal care products and exporting to Europe.

The Cronos Group develops innovative textiles using hemp fiber, partnering with fashion brands for eco-friendly lines.

Ecofibre Ltd specializes in biocomposites, investing in processing tech to supply construction and automotive sectors.

HempFlax Group B.V. emphasizes fiber production, with strategies for supply chain optimization and organic certification to meet textile demands.

Dun Agro Hemp Group focuses on seed oils for nutraceuticals, expanding through joint ventures in Asia.

Fresh Hemp Foods Ltd. innovates in food products, using marketing to promote nutritional benefits and enter new markets.

GenCanna targets pharmaceutical applications, investing in extraction facilities for high-purity CBD.

What are the Market Trends in the Industrial Hemp Market?

  • Increasing legalization worldwide is expanding cultivation areas and market access.
  • Rising demand for sustainable textiles is boosting hemp fiber adoption in fashion.
  • Growth in CBD-infused wellness products is driving pharmaceutical and personal care segments.
  • Advancements in processing technologies are improving yield efficiency and product quality.
  • Integration in bioplastics is addressing plastic pollution concerns.
  • Expansion of organic hemp farming is appealing to eco-conscious consumers.
  • Use in construction materials like hempcrete is gaining traction for green building.
  • Nutritional benefits are fueling incorporation in functional foods and supplements.
  • Partnerships between farmers and industries are enhancing supply chain resilience.
  • Focus on carbon sequestration is positioning hemp as a climate-friendly crop.

What are the Market Segments and their Subsegments Covered in the Industrial Hemp Market Report?

By Product Type
  • Seeds
  • Fiber
  • Shives
  • Oil
  • Bast
  • Hurd
  • Protein
  • Others
By Application
  • Food & Beverages
  • Textiles
  • Personal Care & Cosmetics
  • Pharmaceuticals
  • Construction Materials
  • Animal Care
  • Paper
  • Automotive
  • Furniture
  • Others
By Source
  • Conventional
  • Organic

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • UAE
    • South Africa
    • Rest of Middle East & Africa

Frequently Asked Questions

The Industrial Hemp Market involves the production and use of low-THC hemp for industrial applications like fiber, seeds, and oils in sustainable products.

Key factors include legalization, demand for eco-friendly materials, technological advancements, and expanding applications in food and textiles.

The market is projected to grow from USD 7.14 billion in 2026 to USD 40.65 billion by 2035.

The market is expected to grow at a CAGR of 19% from 2026 to 2035.

Asia Pacific will contribute notably, holding a 35% share due to large-scale production and exports.

Major players include 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., and GenCanna.

The report provides analysis of size, trends, segments, regions, players, and forecasts from 2026 to 2035.

Stages include cultivation, harvesting, processing, product manufacturing, distribution, and end-use applications.

Trends focus on sustainability and wellness, with consumers preferring organic, eco-friendly hemp products.

Legalization and eco-policies boost growth, while THC regulations and climate variability pose challenges.