Industrial Hemp Market 2024

The industrial hemp market size has grown rapidly in recent years. It will grow from $6.12 billion in 2023 to $7.34 billion in 2024 at a compound annual growth rate (CAGR) of 19.8%. The growth during the historic period can be linked to a rising demand for hemp-based textiles, heightened awareness of the sustainability benefits of hemp, an expanding use of hemp in construction materials, the legalization of hemp cultivation in various countries, increased demand for hemp-derived CBD products, and a growing utilization of hemp in animal feed.

The industrial hemp market size is expected to see exponential growth in the next few years. It will grow to $15.27 billion in 2028 at a compound annual growth rate (CAGR) of 20.1%. The growth anticipated in the forecast period can be attributed to the widening applications of hemp in the automotive industry, increased utilization of hemp in bioplastics, a rising demand for hemp in the food and beverage sector, growing interest in sustainable agricultural practices, and an uptick in the demand for hemp-based dietary supplements. Key trends during this period include improvements in hemp cultivation techniques, broader application of hemp in the pharmaceutical sector, the development of hemp-based packaging solutions, the integration of hemp into sustainable construction initiatives, and advancements in the genetic modification of hemp to enhance yield.

The rising demand for sustainable and eco-friendly products is anticipated to drive the growth of the industrial hemp market in the future. Sustainable and eco-friendly products are designed to reduce environmental impact by utilizing renewable resources, minimizing waste, and fostering ecological balance. This growing demand stems from heightened environmental awareness, regulatory pressures, consumer preferences for green alternatives, and corporate commitments to decreasing carbon footprints. Industrial hemp is particularly notable for its rapid growth and minimal resource requirements, as it necessitates fewer pesticides and herbicides compared to conventional crops, thereby decreasing chemical runoff and preventing soil degradation. For example, in March 2023, the NYU Stern Center for Sustainable Business (CSB), a U.S.-based academic research center, reported that products marketed based on sustainability gained market share, representing 17.3% of purchases in 2022 compared to traditionally marketed products, marking a 0.3% increase from 2021. Consequently, the heightened demand for sustainable and eco-friendly products is propelling the industrial hemp market forward.

Key companies in the industrial hemp sector are concentrating on creating innovative products, such as biochar derived from industrial hemp, which helps sequester carbon, enhance soil health, and generate revenue through carbon credits while promoting sustainable agricultural practices. Biochar produced from industrial hemp improves soil fertility and facilitates carbon sequestration, offering a sustainable solution that benefits both agriculture and the environment. For instance, in June 2024, Hempalta Corp., a Canadian agricultural technology firm, introduced a new biochar product. This carbon-rich material is created from organic matter, including industrial hemp, through a process called pyrolysis, which involves heating biomass at high temperatures in an oxygen-limited environment to capture carbon. The resulting product improves soil fertility and health by increasing organic carbon content, enhancing water retention, and fostering beneficial microbial activity. Additionally, it transforms agricultural waste into a valuable resource, allowing farmers to generate revenue through carbon credits since biochar qualifies for carbon removal initiatives. This product has versatile applications in landscaping, construction as part of hempcrete, and environmental remediation, making it an eco-friendly solution that bolsters agricultural productivity and aids in climate change mitigation.

In April 2024, SynBiotic SE, a Germany-based manufacturer of industrial hemp, acquired Ilesol Pharmaceuticals d.o.o. for an undisclosed amount. This acquisition allows SynBiotic to integrate an independent production facility for cannabinoid extracts, thereby strengthening its supply chain, increasing its market presence in Europe, and enhancing its competitiveness within the expanding hemp industry. Ilesol Pharmaceuticals d.o.o. is a Croatia-based manufacturer of industrial hemp.

Major companies operating in the industrial hemp market are Curaleaf Holdings Inc., Aurora Cannabis Inc., Konoplex Group, Plains Industrial Hemp Processing Ltd., Manitoba Harvest Hemp Foods Information, Ecofibre Limited, Elixinol, HempFlax Group BV, PureHemp Technology, Zelios, Parkland Industrial Hemp Growers Cooperative Ltd., Marijuana Company of America Inc., IND HEMP LLC, Blue Sky Hemp Ventures Ltd., Bombay Hemp Company, Panda Biotech LLC, HempMeds Brasil, Hempro International GmbH, Dun Agro Hemp Group, Greenfield Paper Company, Hempco Food and Fiber Inc., Bast Fibre Technologies Inc., Treehouse Biotech, The Hemp Mine, Bastcore Inc., Bluebird Botanicals, South Hemp Tecno Srl.

North America was the largest region in the industrial hemp market in 2023. The regions covered in the industrial hemp marker report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the industrial hemp marker report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Industrial hemp is a specific variety of the Cannabis sativa plant cultivated for industrial purposes, such as fiber, seed, and oil production. This type of hemp contains only minimal levels of THC (tetrahydrocannabinol), the psychoactive component more prevalent in marijuana. Industrial hemp is valued for its versatility and its potential as a sustainable crop.

The primary types of industrial hemp include hemp seeds, hemp seed oil, cannabidiol (CBD) hemp oil, hemp bast, and hemp hurd. Hemp seeds are small, nutrient-rich seeds from the hemp plant, abundant in protein, healthy fats, and vitamins. These seeds can be sourced from both conventional and organic methods. Industrial hemp finds application in various sectors, including food and beverages, textiles, pharmaceuticals, personal care products, animal nutrition, paper, and construction materials, among others.

The industrial hemp market research report is one of a series of new reports that provides industrial hemp market statistics, including industrial hemp industry global market size, regional shares, competitors with an industrial hemp market share, detailed industrial hemp market segments, market trends and opportunities, and any further data you may need to thrive in the industrial hemp industry. This industrial market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The industrial hemp market consists of sales of dual-purpose hemp, and hemp for biocomposites. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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