Global Industrial Hemp Market To Experience Continued Growth
The global market for industrial hemp and hemp-related products is far from being a new thing. Humans have valued hemp fibers and hemp seeds for thousands of years. It wasn’t until the 20th century that policies prohibiting the hemp plant were implemented.
Thankfully, more and more nations are realizing that hemp prohibition makes no sense and that it is time for a more sensible approach. Hemp policy and regulatory modernization efforts are spreading across the globe, and with it, tremendous economic opportunities are being created.
According to a recent market analysis by Technavio, “the global industrial hemp market size is estimated to grow by USD 13.90 Billion from 2024 to 2028,” and “the market is estimated to grow at a CAGR of over 25.25% during the forecast period.”
“The APAC region is a major player in the industrial hemp market, with China, Japan, and South Korea being key producers and consumers. The region’s market growth is driven by increasing product adoption in various industries and legalization of hemp cultivation in countries like China, India, Bangladesh, Japan, and Australia. China, as the largest producer, contributes significantly to the global market, with a long history of hemp use in papermaking, textiles, and medicine.” Technavio stated in its market analysis.
In a separate analysis, market analysts at Research and Markets determined that “the global market for Industrial Hemp was estimated at US$7.5 Billion in 2023 and is projected to reach US$23.3 Billion by 2030, growing at a CAGR of 17.7% from 2023 to 2030.”
“The growth in the industrial hemp market is driven by several factors, including the increasing demand for sustainable and biodegradable materials, favorable regulatory changes, and the rising popularity of CBD-based products. As industries such as automotive and construction seek eco-friendly alternatives to traditional materials, hemp’s versatility and low environmental impact make it an attractive choice. Regulatory shifts, especially the legalization of hemp cultivation in many regions, have opened new market opportunities for hemp-derived products.” Research and Markets stated about the global industrial hemp market.
In yet another market analysis, Allied Analytics found that “The global industrial hemp market size was valued at $4.9 billion in 2019, and is projected to reach $18.6 billion by 2027, registering a CAGR of 22.4% from 2021 to 2027.”
The Business Research Company also recently published a global industrial hemp market analysis, finding that, “the hemp market size is predicted to see exponential growth in just a few short years, reaching a staggering $15.08 billion by 2028, a CAGR of 20.6%.”
In its market analysis, the IMARC Group determined the following about the emerging global industrial hemp market:
- The market is expected to reach USD 20.9 Billion by 2033, exhibiting a growth rate (CAGR) of 14.5% during 2025-2033.
- Asia Pacific holds the largest share of the industry, driven by a large agricultural workforce, growing hemp product acceptance, and rising demand for eco-friendly, sustainable materials.
- Hemp seeds lead the market, accounting for the majority of the market share owing to their high protein, fiber, and essential fatty acid content, appealing to health-conscious consumers.
- Food and beverages represent the leading application segment spurred by increasing consumer demand for plant-based, sustainable, and nutrient-rich alternatives in diets.
- The rise of hemp-based cosmetics in the beauty industry, due to its anti-inflammatory properties, is boosting the market demand.
For the hemp seed market specifically, The Business Research Company has determined that the sector “will grow from $6.71 billion in 2023 to $7.48 billion in 2024 at a compound annual growth rate (CAGR) of 11.6%.”
“The growth in the historic period can be attributed to growing demand for plant-based protein, increasing awareness of health benefits, rising use in cosmetics and personal care products, expansion of industrial applications, and rising popularity of organic and natural products.” the researchers stated about the hemp seed market.
Regarding the global hemp protein powder market, Global Market Insights estimates that “market valuation is predicted to exceed USD 530 million by 2032.” The market analysis determined that “growth is largely fueled by the increasing demand for plant-based protein options among health-conscious consumers, including vegans and vegetarians.”
Lastly, hemp clothing continues to experience increased demand around the globe, with market researchers affiliated with Allied Analytics estimating that “the global Hemp Clothing Market Size was valued at $2.29 billion in 2021, and is projected to reach $23.02 billion by 2031, growing at a CAGR of 27.1% from 2022 to 2031.”
