Industrial Hemp Market

Market Definition

The market covers the cultivation and processing of hemp for various commercial uses. It analyzes the application of industrial hemp in products, such as textiles, paper, biofuels, food, and beverages.

Hemp’s versatility and sustainability make it valuable in industries like construction, personal care, and nutrition, supporting eco-friendly alternatives and promoting innovation across multiple sectors. The report outlines the primary market drivers, emerging trends, and regulatory lanscape involving the market.

Industrial Hemp Market Overview

The global industrial hemp market size was valued at USD 11.13 billion in 2024 and is projected to grow from USD 12.91 billion in 2025 to USD 42.21 billion by 2032, exhibiting a robust CAGR of 18.44% during the forecast period.

The market is surging due to rising demand for plant-based functional beverages and expanding e-commerce channels. Health-conscious consumers are opting for nutrient-rich hemp drinks, while online platforms are improving product accessibility and driving efficient distribution to diverse consumer segments.

Major companies operating in the industrial hemp industry are Curaleaf, Inc., Green Thumb Industries (GTI), Canopy Growth Corporation, AURORA CANNABIS INC., Ecofibre Ltd, The Cronos Group, HempFlax Group B.V., Dun Agro Hemp Group, Fresh Hemp Foods Ltd., GenCanna, Canah International, MH medical hemp GmbH, IND HEMP, LLC., HemPoland, Colorado Hemp Works, INC

The market is experiencing strong growth driven by rising demand for hemp-derived cannabidiol (CBD) products. Consumers are increasingly turning to CBD for its potential health and wellness benefits, including stress relief, pain management, and improved sleep.

This demand spans various formats such as oils, edibles, topicals, and supplements. As awareness and acceptance of these products grow across mainstream markets, manufacturers are expanding their offerings and distribution channels, positioning CBD as a core segment within the market.

• In January 2025, DoorDash expanded its offerings to include on-demand delivery of hemp-derived THC and CBD products in select states. Eligible customers can now order beverages, gummies, and topicals directly through the app. This move aligns with rising consumer interest in wellness alternatives, supported by secure age verification and growing partnerships with major retailers like DashMart and Total Wine & More.

Key Highlights:

1. The industrial hemp industry size was recorded at USD 11.13 billion in 2024.
2. The market is projected to grow at a CAGR of 18.44% from 2025 to 2032.
3. Europe held a market share of 36.44% in 2024, with a valuation of USD 4.06 billion.
4. The hemp oil segment garnered USD 4.24 billion in revenue in 2024.
5. The conventional segment is expected to reach USD 22.98 billion by 2032.
6. The pharmaceuticals & healthcare supplements segment is anticipated to witness the fastest CAGR of 20.76% during the forecast period.
7. Asia Pacific is anticipated to grow at a CAGR of 19.19% during the forecast period.

Market Driver

Rising Consumer Demand for Plant-Based and Functional Drinks

The industrial hemp market is rapidly expanding due to rising consumer demand for plant-based and organic functional drinks. Health-conscious consumers now seek natural, nutrient-rich beverages that offer added benefits such as improved digestion, immunity, and energy.

Plant-based ingredients provide sustainable, eco-friendly alternatives to traditional drinks while meeting diverse dietary preferences. This shift drives innovation and growth in functional beverage formulations, helping the market to fulfil evolving consumer needs for wellness and sustainability.

• In September 2024, Tilray Brands introduced a new range of hemp-derived Delta-9 THC (HDD9) beverages in the U.S., offering mocktails, seltzers, and sparkling drinks under its 420 Fizz, Herb & Bloom, Fizzy Jane’s, and Happy Flower brands. These 5mg HDD9-infused drinks are crafted to deliver a smooth, balanced, and flavorful experience.

Market Challenge

Limited Awareness among Farmers and Consumers

The industrial hemp market faces a significant challenge due to limited awareness among farmers and consumers about its benefits, cultivation methods, and wide-ranging applications. Many farmers remain unfamiliar with hemp's economic potential and sustainability benefits, while consumers often confuse it with psychoactive cannabis, which limits adoption.

To address this, companies are investing in educational campaigns, collaborating with agricultural authorities, and conducting training programs to guide farmers. They are also launching awareness initiatives through social media and community outreach to inform consumers about hemp-based products. These efforts aim to build trust, expand usage, and strengthen the overall market.

Market Trend

Expansion of E-Commerce Channels

The industrial hemp market is witnessing a significant trend, the expansion of e-commerce channels for hemp-derived products. Increasing consumer preference for convenient, direct-to-consumer purchasing has accelerated the growth of online platforms dedicated to selling hemp goods.

This shift, supported by partnerships with third-party brands and delivery services, has enabled broader product accessibility and enhanced customer reach. As digital marketplaces evolve, they become critical avenues for compliant hemp products efficiently to diverse consumer segments.

• In June 2024, Curaleaf Holdings, Inc. announced the launch of a new hemp-derived Tetrahydrocannabinol (THC) product line under its Select and Zero Proof brands. These products will be available starting June 26 through Curaleaf’s new e-commerce platform, TheHempCompany.com, offering Farm Bill compliant hemp products direct to consumers. The platform also features partnerships with third-party brands and supports expanded distribution via retail and DoorDash delivery services.

Industrial Hemp Market Report Snapshot

Segmentation	Details
By Product Type	Hemp Seeds (Whole Hemp Seeds, Hulled Hemp Seeds, Hemp Seed Protein Powder), Hemp Oil (Hemp Seed Oil, CBD (Cannabidiol) Hemp Oil), Hemp Fiber, Others (Hemp Hurds, Hemp Extracts (Without CBD))
By Source	Conventional, Organic
By End-use Industry	Food & Beverages, Textiles, Personal Care & Cosmetics, Construction Materials, Pharmaceuticals & Healthcare Supplements, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Product Type (Hemp Seeds, Hemp Oil, Hemp Fiber, Others): The hemp oil segment earned USD 4.24 billion in 2024 due to increasing consumer demand for plant-based wellness products and its widespread application in personal care, food, and nutraceutical industries.
• By Source (Conventional, Organic): The conventional segment held 58.44% of the market in 2024, due to its cost-effective production, higher yield potential, and wider availability across large-scale commercial applications.
• By End-use Industry (Food & Beverages, Textiles, Personal Care & Cosmetics, and Construction Materials, Others): The food & beverages segment is projected to reach USD 10.87 billion by 2032, due to rising consumer preference for nutrient-rich, plant-based ingredients and the growing integration of hemp in functional food and drink formulations.

Industrial Hemp Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Europe industrial hemp market share stood at around 36.44% in 2024 in the global market, with a valuation of USD 4.06 billion. Europe dominates the market due to advanced hemp fiber processing technologies and high demand for hemp-based wellness and dietary products. Its established agricultural infrastructure supports large-scale hemp cultivation, while ongoing research improves product quality and diversity.

These factors driveproduction and expand applications across industries. The region’s focus on innovation in extraction methods and product development further enhances its competitive edge, making Europe a global hub for industrial hemp production and market growth.

Asia Pacific is poised for significant growth at a significant CAGR of 19.19% over the forecast period. The market in Asia Pacific is driven by increasing government support for sustainable agriculture and growing investments in hemp-based fiber and textile production.

Rising awareness of hemp’s environmental benefits, such as low water usage and carbon sequestration, has further bolstered its demand. Additionally, the expansion of hemp-derived products in personal care and food industries is driving market growth. These factors collectively enhance hemp cultivation and processing infrastructure, positioning Asia Pacific as a key player in the market.

• In March 2023, the Ministry of Science & Technology reported that India’s Technology Development Board (TDB) supported M/s Sahi Fab Private Limited to develop and commercialize fiber from industrial hemp and agricultural waste. This Waste to Wealth mission under Swachh Bharat Urban 2.0 focuses on converting hemp stems into sustainable fiber, enhancing farmers' income and advancing industrial hemp applications.

Regulatory Frameworks

• In the U.S., industrial hemp is primarily regulated by the U.S. Department of Agriculture (USDA) under the 2018 Farm Bill, with oversight from the Food and Drug Administration (FDA) for hemp-derived products used in food, drugs, and cosmetics.
• In India, industrial hemp is regulated under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, which permits its cultivation for industrial and horticultural use, provided the Tetrahydrocannabinol (THC) content remains below 0.3% and specific conditions are met.
• In Europe, industrial hemp is regulated by the European Union under the Common Agricultural Policy (CAP). Each member state enforces its own regulations, while the European Food Safety Authority (EFSA) oversees hemp-derived food and supplement safety across the EU.

Competitive Landscape

Companies operating in the industrial hemp industry are actively adopting mergers, acquisitions, and new product launches to strengthen their position and expand their footprint. Leading players are entering strategic partnerships, launching direct-to-consumer platforms, and enhancing their brand portfolios to remain competitive. These initiatives are shaping the industry landscape across both state-regulated markets and hemp-derived product categories.

• In October 2024, Canopy USA, a subsidiary of Canopy Growth Corporation, acquired Wana, strengthening its brand-focused cannabis portfolio in the U.S. Alongside its majority stake in Jetty, Canopy USA aims to drive growth in state-legal markets and the hemp-derived product space, leveraging synergies in edibles, vapes, and direct-to-consumer platforms like Wanderous.

List of Key Companies in Industrial Hemp Market:

• Curaleaf, Inc.
• Green Thumb Industries (GTI)
• Canopy Growth Corporation
• AURORA CANNABIS INC.
• Ecofibre Ltd
• The Cronos Group
• HempFlax Group B.V.
• Dun Agro Hemp Group
• Fresh Hemp Foods Ltd.
• GenCanna
• Canah International
• MH medical hemp GmbH
• IND HEMP, LLC.
• HemPoland
• Colorado Hemp Works, INC

Recent Developments (Partnerships)

• In May 2025, Curaleaf International, part of Curaleaf Holdings Inc., expanded into the Australian medical cannabis industry through a partnership with Canngea, a licensed local manufacturer and wholesaler. This collaboration enables Curaleaf to introduce its branded cannabis flower strains, supporting its commitment to innovative, precision-dosed hemp-derived products and reinforcing its presence in the industrial hemp and medical cannabis segments.
• In December 2024, Hempalta Corp. acquired the remaining 49.9% stake in Hemp Carbon Standard (HCS), gaining full ownership. This move enhances Hempalta’s presence in the industrial hemp-based carbon credit market, enabling complete access to HCS’s proprietary methodologies and verification systems, and positioning the company to better capitalize on growing opportunities in sustainable carbon offset solutions.
• In May 2024, Cronos Group Inc. expanded its PEACE NATURALS medical cannabis brand into the UK through a partnership with GROW Pharma. Leveraging advanced R&D and cannabis genetics, Cronos aims to strengthen its presence in international industrial hemp and medical cannabis markets, building on recent expansions in Germany and Australia while pursuing further growth opportunities across Europe.