Market Size of Industrial Hemp Industry
| Study Period | 2024 - 2029 |
| Market Size (2024) | USD 2.60 Billion |
| Market Size (2029) | USD 5.91 Billion |
| CAGR (2024 - 2029) | > 17.00 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Industrial Hemp Market Analysis
The Industrial Hemp Market size is estimated at USD 2.60 billion in 2024, and is expected to reach USD 5.91 billion by 2029, growing at a CAGR of greater than 17% during the forecast period (2024-2029).
The market was negatively impacted by COVID-19 in 2020. Manufacturing and construction activities were paused as a result of the lockdowns. The outbreak of COVID-19 also brought several short-term and long-term consequences to the construction industry. According to the Associated General Contractors of America (AGC), there were disruptions to work or canceled projects and hence less demand for 'non-essential' projects, like offices, entertainment, and sports facilities, in the initial months of 2020. Furthermore, in 2021, the demand for industrial hemp recovered and is expected to grow at a significant rate in the coming years.
- Over the short term, the major factors driving the market studied are the huge demand for industrial hemp products across diverse and highly functional applications in the healthcare sector.
- On the flip side, stringent regulations associated with hemp are hindering the growth of the market.
- The eco-friendly nature of hemp, with its low carbon footprint, extensive research and development activities, and recent regulations related to hemp, is expected to offer lucrative opportunities for growth in the market.
- North America is expected to grow at the fastest rate across the world, with the largest consumption from countries such as the United States and Canada.
Industrial Hemp Industry Segmentation
Industrial hemp is a non-drug variety of Cannabis sativa with very low delta-9-tetrahydrocannabinol (THC) content. It is an agricultural commodity that comes from the same plant species but from different cultivars bred for different uses. There are genetically distinct forms of Cannabis that are differentiated by their usage, chemical makeup, and practices of cultivation. Industrial hemp has been a source of fiber and oilseed for centuries and is extensively used to produce a variety of industrial and consumer products across the world. It is a dual-purpose crop and can be grown as a seed and fiber.
The industrial hemp market is segmented on the basis of type, application, and geography. By type, the market is segmented into hemp seed (consumed raw, cooked, or roasted), hemp seed oil, cannabidiol (CBD) hemp oil, hemp protein (supplement), and hemp extract (without CBD). By application, the market is segmented into food and beverages, healthcare supplements, and other applications (paper, textiles, etc.). The report also covers the market size and forecasts for the industrial hemp market in 27 countries across major regions. For each segment, the market sizes and forecasts are provided in terms of revenue (USD).
| Type | |
| Hemp Seed (Consumed Raw, Cooked or Roasted) | |
| Hemp Seed Oil | |
| Cannabidiol (CBD) Hemp Oil | |
| Hemp Protein (Supplement) | |
| Hemp Extract (Without CBD) |
| Application | |
| Food and Beverages | |
| Healthcare Supplements | |
| Other Applications |
| Geography | |||||||||||
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Industrial Hemp Market Size Summary
The industrial hemp market is poised for significant growth, driven by its diverse applications and increasing demand across various sectors. The market, which experienced setbacks due to the COVID-19 pandemic, is on a recovery path with robust growth anticipated in the coming years. The eco-friendly nature of hemp, coupled with its low carbon footprint and extensive research and development activities, presents lucrative opportunities for market expansion. North America is expected to lead this growth, with the United States and Canada at the forefront, benefiting from a growing geriatric population and heightened consumer awareness. The passage of the Farm Bill 2018 has opened new avenues for hemp cultivation and its application across multiple end-user industries, although regulatory challenges remain a hurdle.
Industrial hemp, derived from the Cannabis sativa strain, is utilized in a wide range of products, from food and beverages to textiles and pharmaceuticals. Its seeds are particularly valued for their high protein content and essential fatty acids, making them a popular ingredient in various food products. The pharmaceutical and textile industries, especially in the United States and Mexico, are expected to drive further demand for industrial hemp. The market is characterized by its fragmented nature, with key players like International Flavors & Fragrances Inc., Firmenich SA, and PharmaCielo Ltd. actively participating in its development. Recent strategic acquisitions and expansions by companies such as MariMed Inc. and CV Sciences highlight the dynamic nature of the market and its potential for continued growth.
Industrial Hemp Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Drivers
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1.1.1 Huge Demand for Industrial Hemp Products Across Diverse Applications
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1.1.2 High Functional Application in Health Care Sector
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1.2 Restraints
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1.2.1 Stringent Regulations Associated with Hemp
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1.3 Industry Value Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Consumers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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2. MARKET SEGMENTATION (Market Size in Value)
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2.1 Type
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2.1.1 Hemp Seed (Consumed Raw, Cooked or Roasted)
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2.1.2 Hemp Seed Oil
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2.1.3 Cannabidiol (CBD) Hemp Oil
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2.1.4 Hemp Protein (Supplement)
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2.1.5 Hemp Extract (Without CBD)
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2.2 Application
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2.2.1 Food and Beverages
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2.2.2 Healthcare Supplements
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2.2.3 Other Applications
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2.3 Geography
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2.3.1 Asia-Pacific
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2.3.1.1 China
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2.3.1.2 India
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2.3.1.3 Japan
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2.3.1.4 South Korea
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2.3.1.5 Malaysia
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2.3.1.6 Thailand
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2.3.1.7 Indonesia
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2.3.1.8 Vietnam
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2.3.1.9 Rest of Asia-Pacific
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2.3.2 North America
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2.3.2.1 United States
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2.3.2.2 Canada
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2.3.2.3 Mexico
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2.3.3 Europe
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2.3.3.1 Germany
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2.3.3.2 United Kingdom
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2.3.3.3 France
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2.3.3.4 Italy
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2.3.3.5 Spain
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2.3.3.6 Turkey
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2.3.3.7 Russia
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2.3.3.8 NORDIC Countries
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2.3.3.9 Rest of Europe
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Colombia
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2.3.4.4 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 Saudi Arabia
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2.3.5.2 Nigeria
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2.3.5.3 Qatar
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2.3.5.4 Egypt
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2.3.5.5 United Arab Emirates
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2.3.5.6 South Africa
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2.3.5.7 Rest of Middle East and Africa
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Industrial Hemp Market Size FAQs
How big is the Industrial Hemp Market?
The Industrial Hemp Market size is expected to reach USD 2.60 billion in 2024 and grow at a CAGR of greater than 17% to reach USD 5.91 billion by 2029.
What is the current Industrial Hemp Market size?
In 2024, the Industrial Hemp Market size is expected to reach USD 2.60 billion.
