Hemp Fiber Global Market Opportunities and Strategies to 2033

This report describes and explains the hemp fiber market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global hemp fiber market reached a value of nearly $11 billion in 2023, having grown at a compound annual growth rate (CAGR) of 26.3% since 2018. The market is expected to grow from $11 billion in 2023 to $53.3 billion in 2028 at a rate of 37%. The market is then expected to grow at a CAGR of 31.2% from 2028 and reach $207.4 billion in 2033.

Growth in the historic period resulted from the increasing fiber hemp cultivation, growth in the textile industry and rise in demand for home aesthetic improvements. Factors that negatively affected growth in the historic period were impact of social stigma and availability of competing materials.

Going forward, increasing demand for sustainable and eco-friendly products, favorable government policies and initiatives, growing awareness of skincare and rising demand for biodegradable packaging will drive the growth. Factor that could hinder the growth of the hemp fiber market in the future include high processing cost and impact of trade barriers.

The hemp fiber market is segmented by type into long (bast) fibers and short (core) fibers. The long (bast) fibers market was the largest segment of the hemp fiber market segmented by type, accounting for 75.4% or $8.3 billion of the total in 2023. Going forward, the short (core) fibers segment is expected to be the fastest growing segment in the hemp fiber market segmented by type, at a CAGR of 39.7% during 2023-2028.

The hemp fiber market is segmented by source into organic and conventional. The conventional market was the largest segment of the hemp fiber market segmented by source, accounting for 70.4% or $7.8 billion of the total in 2023. Going forward, the organic segment is expected to be the fastest growing segment in the hemp fiber market segmented by source, at a CAGR of 40.1% during 2023-2028.

The hemp fiber market is segmented by application into textiles, construction materials, paper, automotive, food and beverage, animal care, personal care and other applications. The textiles market was the largest segment of the hemp fiber market segmented by application, accounting for 39.4% or $4.3 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the hemp fiber market segmented by application, at a CAGR of 40.8% during 2023-2028.

Asia Pacific was the largest region in the hemp fiber market, accounting for 38.5% or $4.3 billion of the total in 2023. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the hemp fiber market will be Asia Pacific and Western Europe where growth will be at CAGRs of 40.6% and 38.8% respectively. These will be followed by South America and the Middle East where the markets are expected to grow at CAGRs of 38.2% and 36.2% respectively.

The global hemp fiber market is highly fragmented, with many players operating in the market. The top seven competitors in the market made up less than 1% of the total market in 2022. Konoplex was the largest competitor with a 0.14% share of the market, followed by HempFlax Group B.V. with 0.04%, EnviroTextiles LLC with 0.04%, Fresh Hemp Food Ltd with 0.04%, Canvaloop Fibre Private Limited with 0.03%, Colorado Hemp Works, INC with 0.003% and Hemp Inc. with 0.0002%.

The top opportunities in the hemp fiber market segmented by type will arise in the Long (Bast) fibers segment, which will gain $30.6 billion of global annual sales by 2028. The top opportunities in the hemp fiber market segmented by source will arise in the Conventional segment, which will gain $27.9 billion of global annual sales by 2028. The top opportunities in the hemp fiber market segmented by application will arise in the Textiles segment, which will gain $19.7 billion of global annual sales by 2028. The hemp fiber market size will gain the most in China at $8.6 billion.

Market-trend-based strategies for the hemp fiber market include growing emphasis on dietary hemp fiber products for gut health and wellness, introducing hemp-based period care products, sustainable alternative to traditional paper production with hemp label stock, embrace sustainability with innovative hemp cloth offerings and focus on industrial hemp fibers to drive sustainable solutions.

Player-adopted strategies in the hemp fiber market include strengthening business capabilities through business expansions, enhancing operational capabilities through strategic acquisitions, enhancing operational capabilities through new product developments and strengthening business capabilities through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the hemp fiber companies to focus on dietary hemp fiber innovation, focus on hemp label stock innovation, focus on industrial hemp fiber development, focus on short (core) fibers segment, focus on organic segment, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, continue to use B2B promotions, participate in trade shows and events, focus on textiles and construction materials application segments and focus on biodegradable packaging manufacturers.