Industrial Hemp Market Size, Share, Growth, and Industry Analysis, By Type (CBD Oil and CBD Crystal), By Application (Medical and Pharmaceutical, Food and Beverage, Cosmetics and Other), and Regional Forecast to 2033

INDUSTRIAL HEMP MARKET OVERVIEW

The global industrial hemp market size was USD 1343.28 million in 2024 and the market is projected to touch USD 5840.97 million by 2033, exhibiting a CAGR of 15.7% during the forecast period.

Industrial Hemp Market is booming with universal increasing demand in textiles, food and beverages to pharmaceuticals, bio plastics, bioplastic sectors leading technology market. The various uses and property of Hemp have led to its increased adoption with the application of sustainability along with advances in laws of several countries. Hemp Seed Market: The market is getting significant buoyancy from the increasing awareness of consumers about the eco-friendly benefits of hemp seeds-based products. Hemp biodegradable plastics, proteins plant etc. Also, the increase in demand of CBD in products like oils, cosmetics and wellness supplements is in further demand by market shareholder.

Industrial hemp production rates and investments in research are on the rise, as hemp cultivation becomes more relaxed from a regulatory perspective around the globe. Industrial Hemp Market growth has further been boosted by technological innovation in hemp fiber processing which increases the application of hemp in textiles and also construction materials. With a high market potential, the increasing demand for sustainable raw materials by manufacturing industries and the growing scope of hemp-based biofuel research. Despite that, regulatory differences and limited excess processing infrastructure make it difficult to scale up commercialization in the future.

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GLOBAL CRISES IMPACTING INDUSTRIAL HEMP MARKET- COVID-19 IMPACT

"Industrial Hemp Industry Had a Negative Effect Due to supply chain disruption during COVID-19 Pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The Market for industrial hemp was hit hard by COVID-19, clogging supply chains, slowing down production and affecting the demand in major end markets such as textiles and bioplastics. Lockdowns and curbs on farming activities result in the farmers lacking adequate human labour to plant and process Hemp. CBD-related wellness and health products did particularly well as a result of the pandemic, including stress relief, immunity-boosting, etc; mitigating somewhat declines in other categories. Markets recovered with investment and regulatory relaxation to facilitate a longer-term growth fueled by economic recovery.

LATEST TREND

"Growing Demand for Sustainable Solutions to Drive Market Growth"

Industrial Hemp Market trend is the increase of use for renewable packaging and hemp-based bioplastics. Hemp-derived materials are the new eco-friendly replacement as environmental issues start creating more demands on industries to switch from single-use plastics. Moreover textiles, automotive and construction industries are also experiencing development in hemp fibre processing advancements. Another factor that is offering considerable impetus to the market is the increasing consumer demand for plant-based and organic food products, which is being fueled by innovation in hemp-derived food, beverages as well personal care. Also the rise in the legalization of industrial hemp cultivation all around the world will further help to increase the production on large scale and investment in research. Hence the companies are now shifting their focus towards improving the quality of hemp-based product, optimizing of processing approach and looking for new applications in wide field.

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INDUSTRIAL HEMP MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into CBD oil and CBD crystal

• CBD Oil – A highly sought-after hemp extract used in wellness and therapeutic applications, CBD oil is widely utilized for pain management, stress relief, and skincare formulations. Its versatility has led to increased adoption in pharmaceuticals, cosmetics, and dietary supplements.

• CBD Crystal – A purified form of cannabidiol with high potency, CBD crystal is mainly used in pharmaceutical and research applications. It serves as a key ingredient in creating customized CBD-infused products, including edibles, tinctures, and topical treatments.

By Application

Based on application, the global market can be categorized into medical and pharmaceutical, food and beverage, cosmetics and other

• Medical and Pharmaceutical – The medical industry is one of the largest consumers of industrial hemp, especially for CBD-based therapies used in pain management, neurological diseases, and inflammation. Research and regulatory clearance are widening the envelope of hemp-based medicines.

• Food and Beverage – Ingredients derived from hemp, including CBD oil and hemp protein, are increasingly being added to food and beverages due to their nutritional value. The growing trend of plant-based diets and functional foods is also propelling demand in this category.

• Cosmetics – With anti-inflammatory and moisturizing agents as treasure, cosmetics employ hemp to manufacture skincare, haircare, and personal care cosmetics. Demand of natural & organic beauty remedies is beef as part to be growth for cosmetic hemp goods.

• Other – The industrial sector uses hemp for biofuel production, textiles, and bioplastics for sustainability. There is also pet care, including hemp-based animal wellness and dietary supplements.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Increasing Demand for Sustainable and Eco-Friendly Products to Boost the Market"

Industrial Hemp Market growth is majorly pegged on the increasing attention being paid worldwide to sustainability and the requirement of biodegradable across several sectors by the rise of global markets. The renewable and low carbon footprint of hemp as it relates to bioplastics developments have led to more enthusiasm for some within the hemp industry around what could be an alternative solution, marketed as environmentally friendly products. Abroad, governments and non-profit environmental organizations are pushing industries to embrace hemp as a greener alternative to completely synthetic materials. The surge in consumer preference for plant-based and organic products is also boosting the market for hemp based food, beverages, personal care items. Improving processing technologies will propel hemp fibers and extracts into more areas of innovation to further push the market outputs.

"Expanding Legalization and Regulatory Support to Expand the Market"

Industrial Hemp Market growth is further fueled by relaxing legal status of this crop and regulatory clarity in certain countries. Individual governments are loosening rules about growing hemp for industry and hemp-derived products, opening up a new world of pharmaceuticals and wellness-to-be, industrial applications businesses will have the chance see. This is paving the way for increased consumer confidence and product safety as regulatory frameworks are in place that speaks well for market. The liberalization of hemp farming laws are allowing for industrial scale plantations, which has seen a number of investments from big players in the industry along with research institutions following. Hence, more companies are backing hemp-based innovations from nutraceuticals to biofuels which drive the future of market growth.

Restraining Factor

"Regulatory and Supply Chain Challenges to Potentially Impede Market Growth"

The Industrial Hemp Market growth is impeded considerably by the intricate and unreliable regional regulatory frameworks in the restraints faced for growth of Industrial Hemp Market.

Countries legalized hemp one way and another but most of that space is still heavily regulated from cultivation to processing/production/distribution vast legal uncertainties confronted businesses. Multiple lack of consensus-global policies creates difficulties in the international trade that blocks company portfolio from companies geographies are also many. Further, the limitations to the supply chain such as poor infrastructure for large scale hemp processing and high upfront costs to a degree of cultivation restrict market progress. Farmers and manufacturers also suffer from limited access to high quality hemp seeds as well slow standard compatibility processes that stave off market expansion.

Opportunity

"Rising Industrial Applications to Create Opportunity for the Product in the Market"

Rapidity of Industrial Hemp Market growth provides huge prospects as industries look to hemp solution series for a myriad of applications. The recognition of hemp in bio-composites and textiles, bioplastics etc. has opened avenues for innovations and product developments to businesses. Furthermore, as CBD derived from Hemp has hit the pharmaceuticals and wellness person care sectors like wildfire, manufacturers are sitting pretty. Fast-paced innovation in terms of extraction and plant processing means companies can improve the performance as well as global competitiveness of hemp-based products. Also, it is anticipated that the implementation of government backing for green sustainable and eco-friendly industries will rise investment in hemp farming processing to a major extent and cause for the growth of market in a longer time perspective.

Challenge

"Lack of Standardization and Market Awareness Could Be a Potential Challenge for Consumers"

Industrial Hemp Market growth is challenged by the lack of standardization for quality and cultivation practices as well as from regulations. The absence of international hemp industry standards also makes it hard to ensure similar hemp-derived products are of same quality, diminishing consumer trust and not allowing for commercial large-scale production. Lack of awareness both in consumers and businesses about the advantages and benefits that industrial hemp provides for market penetration. Consumers remains confused that Hemp and Cannabis (Psychoactive) are essentially the same leaving a market limitation potentially there for the taking. Overcoming these obstacles is going to require tougher educational campaigns, industry alliances and harmonization of regulatory paths in order to shape a more ordered, transparent market ecosystem.

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INDUSTRIAL HEMP MARKET REGIONAL INSIGHTS

North America

The Industrial Hemp Market share in the North American region is increasing due to the advancing legalization of hemp and hemp product-derived products, especially in America. The United States Industrial Hemp Market is driven by the enactment of the 2018 Farm Bill, which legalized the cultivation of hemp as well as setting a positive precedent for farmers as well as manufacturers. In addition, growing demand for hemp food, personal care, and pharmaceuticals is driving new investments and innovation in the area. Companies are also focusing on expanding production capacities and diversifying ranges of hemp products to meet accelerating consumer demand. Moreover, developing new processing technologies and research initiatives to improve hemp quality and yield are also helping to drive market growth.

Europe

Industrial Hemp Market in Europe plays a significant role around the globe including several European countries such as France, German and this are also the leading countries on cultivators as well as followers for many products. Region driven by supportive Governments that promote sustainable farming and green alternatives Growth for the region Industrial Hemp Market of North America region is expected to strengthen with investigating demand of industrial hemp in bioplastics construction and organic foods will be increased the Industrial Hemp Market share. More and more European companies are funding creative hemp ventures as consumer awareness as well as generalized openness to eco-friendly, plant-based products grows. The region is also seeing collaboration between research institutions and industry players that will further new hemp uses for other sectors to expand market.

Asia

Industrial hemp's market share in Asia is expanding with huge-scale production in countries like China, India, and South Korea. China takes the position of a global hemp fiber production leader, which is being exported to textile, paper, and construction material industries. The Indian government's recognition of hemp's utility in wellness, pharmaceuticals, and Ayurvedic applications is generating fresh market opportunities. However, despite the prospects for expansion, regulatory complexities and variations in legal frameworks between Asian countries continue to pose challenges to the smooth commercialization of hemp products. Additionally, increased investments in research and infrastructure improvement are helping to enhance hemp processing capabilities, allowing Asian producers to compete more effectively in the international market.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Top industrial hemp firms are proactively investing in R&D to upgrade product quality, efficiency, and sustainability. They are concentrating on innovative hemp products in pharmaceutical, textile, and bio-composites industries to catch up with increasing consumer demand. Some players are increasing their growing and processing plants to maintain an uninterrupted supply of high-quality hemp products while conforming to stringent regulatory requirements. On top of this, collaborations and joint ventures with research organizations and government bodies are influencing improvements in hemp farming methods and applications of products. Several companies are also focusing on sustainability through the implementation of green processing technologies and introducing biodegradable hemp products. With growing legalization and consumer knowledge, industry participants are constantly strategizing to improve their global reach and optimize profitability in this dynamic market.

List of Market Players Profiled

• Kazmira (United States)
• Medical Marijuana, Inc. (United States)
• Charlotte's Web CBD (United States)
• CV Sciences (United States)
• Folium Biosciences (United States)
• Endoca (Netherlands)
• Aurora Cannabis (Canada)
• Aphria (Canada)
• Canopy Growth Corporation (Canada)
• Manitoba Harvest (Canada)
• Hankang (Yunnan) Biotechnology (China)
• Yunnan Hansu Biotechnology (China)
• Yunnan Hamusen Biology (China)
• Kunming BiouNIO Biotechnology (China)
• Asan Wuxing Biology (China)
• Yunnan Yunxing Biotechnology (China)
• Huayun Jinxin Biotechnology (China)
• Yunma Biotechnology (Chenguang Biotechnology) (China)

KEY INDUSTRY DEVELOPMENT

January 2025: Aurora Cannabis Inc. introduced IndiMed, its first domestically cultivated medical cannabis brand in Germany. This launch aligns with Germany’s recent cannabis decriminalization, positioning Aurora as a key player in the country’s evolving market. The IndiMed brand is produced at Aurora’s EU-GMP certified facility in Leuna, ensuring high-quality standards for medical patients. With this expansion, Aurora aims to strengthen its European presence and meet the rising demand for locally sourced medical cannabis. This move reflects the company’s strategic focus on regulatory-compliant growth and innovation in the global cannabis industry.

REPORT COVERAGE

The Industrial Hemp Market report provides a comprehensive analysis of key trends, growth drivers, challenges, and opportunities shaping the industry. It includes detailed segmentation by type (CBD Oil, CBD Crystal) and application (Medical and Pharmaceutical, Food and Beverage, Cosmetics, and Others) to offer insights into diverse market dynamics. The report examines regional market performance across North America, Europe, and Asia, highlighting factors influencing market expansion in these regions. Additionally, it explores the impact of major global events such as COVID-19, geopolitical conflicts, and regulatory changes on market growth. The report also assesses the role of government policies in shaping the industry, particularly regarding legalization and industrial hemp farming regulations. This provides stakeholders with a deeper understanding of how regulatory shifts impact production and trade.

Furthermore, the report profiles leading industry players, assessing their market strategies, recent developments, and innovations to provide a competitive landscape overview. It also presents a detailed analysis of industrial hemp production trends, pricing structures, and supply chain dynamics. Market forecasts, backed by data-driven insights, help stakeholders make informed investment decisions. Additionally, the report evaluates emerging opportunities, such as the expanding use of hemp-derived CBD in pharmaceuticals and wellness industries, while addressing challenges like regulatory uncertainties and fluctuating raw material prices. The study also covers technological advancements in hemp processing and extraction techniques that enhance efficiency and product quality. By offering a holistic view of the industry, the report enables businesses to identify potential growth avenues and formulate strategic plans for long-term success.