Industrial Hemp Market Size (2024 - 2029)

Industrial Hemp Market Analysis

The Industrial Hemp Market size is estimated at USD 2.60 billion in 2024, and is expected to reach USD 5.84 billion by 2029, growing at a CAGR of 17.56% during the forecast period (2024-2029).

The market was negatively impacted by COVID-19 in 2020. Manufacturing and construction activities have come to a halt as a result of the lockdowns. The outbreak of COVID-19 also brought several short-term and long-term consequences to the construction industry. According to the Associated General Contractors of America (AGC), there were disruptions to work or canceled projects and hence less demand for 'non-essential' projects, like offices, entertainment, and sports facilities, in the initial months of 2020. Furthermore, in 2021, the demand for the market studied has recovered and is expected to grow at a significant rate in the coming years.

• Over the short term, major factors driving the market studied are the huge demand for industrial hemp products across diverse applications and highly functional applications in the healthcare sector.
• On the flip side, stringent regulations associated with hemp are hindering the growth of the market.
• The eco-friendly nature of hemp, with a low carbon footprint, extensive Research and Development activities, and recent regulations related to hemp, is expected to offer lucrative opportunities for the growth of the market.
• North America region is expected to grow at the fastest rate across the world, with the largest consumption from countries such as the United States and Canada.

Industrial Hemp Industry Segmentation

Industrial hemp is a non-drug variety of Cannabis sativa with very low delta-9-tetrahydrocannabinol (THC) content. It is an agricultural commodity that comes from the same species of plant, Cannabis sativa, but from different cultivars which have been bred for different uses. They are genetically distinct forms of cannabis and are differentiated by their usage, chemical makeup, and practices of cultivation. Industrial hemp has been a source of fiber and oilseed for centuries and is extensively used to produce a variety of industrial and consumer products across the world. It is a dual-purpose crop and can be grown as a seed and fiber. The industrial hemp market is segmented on the basis of type, application, and geography. By type, the market is segmented into hemp seed (consumed raw, cooked, or roasted), hemp seed oil, cannabidiol (CBD) hemp oil, hemp protein (supplement), and hemp extract (without CBD). By application, the market is segmented into food and beverages, healthcare supplements, and other applications. The report also covers the market size and forecasts for the industrial hemp market in 9 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).