Industrial Hemp Market Analysis 2026

As per Cognitive Market Research's latest published report, the Global Industrial Hemp market size was $68,960.32 Thousand in 2015 and it is forecasted to reach $3,37,066.42 Thousand by 2027.Industrial Hemp Industry's Compound Annual Growth Rate will be 16.99% from 2023 to 2030. 

• The North America Industrial Hemp market size will be USD 1,20,315.86 Thousand in 2027. 

What is Industrial Hemp?

Industrial Hemp is extracted from a plant species known as Cannabis sativa grown for industrial purposes. This industrial hemp is produced in the form of seeds, fibre and shives. The industrial hemp has low concentrations of (THC) or Tetrahydrocannabinol and (CBD) Cannabidiol. This concentrations of CBD and THC helps in elimination of psychoactive side-effects. Hemp is high in fibre content and has low amount of tetrahydrocannabinol less than 0.3%.

The industrial hemp market has higher share and immense opportunities for the future growth, because of wide range applications of industrial hemp in various industrial sectors, propels the growth of market. The market has strong presence in the European, Asia-Pacific region, North America in the US due to regulations imposed on the hemp production and lot of health benefits associated with it and its wide variety use in various sectors, boost the growth of market. The grower of the hemp must take licence or permission from Drug Enforcement Agency in the US for the production of industrial hemp.

In the Asia-Pacific region, China has reported as the largest producer of hemp fibre and China grows hemp crop to half of the world’s supply. The hemp crop in the European market has wide range applications due to its eco-friendly property, strong durable, high yield of natural fibres, valuable crop for bio-based economy. It has applications in automotive industrial sectors, hemp fibres and seeds used in pulp and paper industry, as insulation material, bio composites, food products, hemp lime and shives used in construction, healthcare applications due to high nutritional value. This benefit associated with the hemp seeds, oil, shives led to high demand and tonnes of hemp crop production in this region, propels the market revenue.

According to the Farm Bill 18 known as Agricultural Improvement Act of 2018, United State Department of Agriculture published rules regarding production of hemp such as farmers must always ensure the low concentration of THC level, which is below 0.3%, conducting proper sampling method, farmers should dispose off the hemp crops, if not compliant according to standards set by Drug Enforcement Agency. This regulation imposed by the authorities, increased production and demand of hemp in the market.

The key players are gaining significant market share and there is higher demand for industrial hemp across all regions has immense potential for further growth of the industrial hemp market due to regulations approved by USDA in the US and Canada, farmers are preferring hemp production than other crops, as these are affordable and has many applications in healthcare industry, food and textile industry. These factors boost the market share across all regions.

The advantages of hemp are that it is considered as an excellent rotational crop for other traditional crops, as it eliminates or reduces risk of weeds, outbreak of insects, which destroy the crops, it is one of the fastest growing plant. Hemp provides aeration to the soil and improve its quality through its strong root system. After hemp production in the soil, farmers get higher quantity of other crops due to improved quality of soil such as grains. 

The industrial hemp market is segmented into form such as seed, fibre and shives, its type is classified into hemp seed, hemp seed oil, CBD hemp oil, hemp fibre, its source of hemp crop bifurcated into organic or conventional and it has wide range applications in the pharmaceutical sector, food and beverage, textile industry.