Global Industrial Hemp Market by Source (Organic, Conventional); by Hemp Type (Fiber, Seed, Oil); by Application (Personal Care Products, Pharmaceuticals, Food & Beverages, Others); and by Region (North America, Europe, Asia Pacific, Latin America, MEA); - Global Forecasts 2021 to 2027

The Global Industrial Hemp Market was valued at USD 3.92 Bn in 2020 and is expected to reach USD 11.72 Bn by 2027, with a growing CAGR of 16.7% during the forecast period.

Global Industrial Hemp Market Overview

Industrial hemp is derived from the Cannabis sativa a plant species. It is used in the production of a wide range of industrial and consumer products around the globe. Hemp is a fibre and oilseed crop grown in more than 30 countries. Production in the United States is regulated by drug enforcement legislation. In order to grow industrial hemp in the United States, the farmer must first get a permit from the Drug Enforcement Agency (DEA). Industrial hemp is sold as a fibre, a seed, or as a multipurpose crop.

Industrial Hemp Market

Global Industrial Hemp Market Dynamics

Growing demand for hemp seeds from the food sector is anticipated to drive the market growth during the forecast period. Hemp seeds can be used to make a wide range of food products, including hemp oil, cheese, hemp-based protein powder, and milk. Hemp contains high protein and vitamin content and they are majorly used in food and beverages, supporting the industrial hemp sector growth. Additionally, the adoption of legality for hemp farming is supporting manufacturers and research organizations to create new products from industrial hemp. Moreover, the use of hemp in oil production is expected to drive the industrial hemp market growth in the near future. The use of hemp in biofuel production is also expected to support the demand for hemp. Hemp biodiesel is manufactured by using hemp seed oil and can be used in any conventional diesel engine. Biofuel is one such use that is expected to have significant growth potential in the coming years.

Moreover, industrial hemp creates one of the most eco-friendly fabrics, owing to which hemp fiber is also called as fiber of hundred uses. Furthermore, nowadays, use of hemp textile has increased in producing t-shirts since it is resistant to wear and tear, which propels the growth of the industrial hemp market throughout the forecast period.

Nevertheless, complex regulatory policies for hemp consumption may restrain the industrial hemp market growth owing to strict regulatory rules and norms relating to production and sales of industrial hemp across various states in the same country could be different for producers and stakeholders to comply with. Furthermore, norms associated with hemp containing Tetrahydrocannabinol (THC) and Cannabidiol (CBD) may vary from country to country, which further leads to compliance related to trading of the commodity. For instance, in the U.S., diversified legal policies should be taken into consideration, which consist of licensure of hemp manufacturers, certification of seeds, regulation, state-wide commissions, and legal protection of manufacturers.

The Global Industrial Hemp Market Segmentation:

By Source

  • Organic
  • Conventional

By Hemp Type

  • Fiber
  • Seed
  • Oil

By Application

  • Personal Care Products
  • Pharmaceuticals
  • Food & Beverages
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

The unique insights provided by this report also include the following:

  • In-depth Value Chain Analysis
  • Opportunity Mapping
  • Sector Snapshot
  • Key Players Positioning Matrix
  • Regulatory Scenario
  • Strategies Adopted-benchmarking Heat Map
  • Market Trends
  • Covid-19 Impact Analysis
  • Product Comparison
  • Pre & Post COVID-19 Impact on the Industrial Hemp Market
  • Competitive Landscape

Based on source, conventional segment held the largest market share in 2020 and is expected to bolster the market demand during the forecast period due to its application on hemp derived fibers

Based on source, the market is segmented into conventional and organic. The conventional segment held the largest market share in 2019 and is projected to remain dominant during the forecast period. Fiber derived from hemp is one of the durable forms of natural fiber and supports the demand for industrial hemp. For instance, in 2019 the top importers of hemp fibers were, Czechia USD 2.88 M, United Kingdom USD 2.39 M , Germany USD 4.1M, Austria USD 3.89 M, Spain USD 3.58M. Therefore, use of hemp in fiber production is expected to drive the industrial hemp market growth in the near future.

Based on application, the food & beverages segment in the industrial hemp market held the largest market share during the forecast period owing to nutritional benefits of hemp

Based on application, the market has been segmented into personal care products, pharmaceuticals, food & beverages, and others. Food & beverages held the largest market share during the forecast period. Hemp seeds can be consumed whole or processed to oil and food. Nutrition bars, salad dressings, cheese, and ice cream, contain hemp seeds and flour. Thus, the use of hemp in food products is expected to support the market growth during the forecast period. For instance, The Tea & Coffee company claimed that orders for hemp milk doubled in 2020. The market potential for hemp seed as a food ingredient is expected to be at nascent stage, like the markets for sesame and poppy seeds. Some consumers may be willing to pay a higher price for hemp-seed-containing products due to its originality. Additionally, hemp oil is being used as an ingredient in body-care products may support the industrial hemp market growth. They are used in lotions, moisturizers, and shampoos, and sold in health food stores as a nutritional supplement.

Based on region, Asia Pacific held the largest market share during the forecast period owing to China as a major hemp & hemp products manufacturer

Based on region, the global industrial hemp market is split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific  is expected  to hold the largest market share during the forecast period. China is one of the leading producers of industrial hemp across the globe. According to statistics from the ‘China Agriculture Research System for Bast and Leaf Fiber Crops’, the overall production area of hemp in China in 2020 was 6.54 104 ha (hectares), accounting for 88.9% of the total area of the world in 2018. In China, the hemp sector is classified geographically at the provincial level. For example, in Yunnan province, the leading industry is extracting hemp for medical and cosmetic use, whereas in Shanxi province, hemp seed and fibre is harvested for food and textile use. Additionally, since 2003, the industry has switched to collecting flowering heads and leaves for the extraction of cannabidiol (CBD), which is supported by local legislation. Thus the support for extraction of CBD is expected to drive the industrial hemp market growth in the  near future.

The report also provides an in-depth analysis of industrial hemp market dynamics such as drivers, restraints, opportunities, and challenges


  • Growing demand for industrial hemp seeds from food & beverage industry
  • Growing demand for industrial hemp from the personal care products industry


  • Regulatory frameworks for industrial hemp use
  • Expensive hemp clothing


  • New product developments in industrial seeds products


  • Lack of skilled labour after legalization

COVID-19 Impact on the Industrial Hemp Market Analysis

The COVID-19 pandemic had moderately impacted many lives and businesses across the globe which result in the slowdown of economies. The supply chain for the raw materials was moderately affected during the lockdown situation. The demand for hemp from the personal care products sector increased unexpectedly. For instance, the entire increase represents marijuana's mainstreaming in American society, with state and municipal governments progressively acknowledging the worth and benefits of medicinal marijuana in the face of the COVID-19 pandemic. Especially, in the United States, new customers emerged to use cannabis drinks to strengthen their immunity, as well as medicines made from marijuana or cannabis, which are commonly used to relieve physical discomfort. On March 23rd, 2020, sales for hemp in Denver were up 392 % compared to the same previous week due to the stay-at-home ruling. Following the closure of in-person retail operations by the state, a Reno delivery business witnessed a 400 % increase in sales. In the United States, when legalised sales existed, the decision of whether a retail store should close or remain open as critical infrastructure was made.

The report also provides an in-depth analysis of key trends in the industrial hemp market

  • Increasing demand for industrial hemp from the skincare sector, as it contains omega-6 & omega-3
  • The use of industrial hemp in paper & textile industry to manufacture animal bed & furniture

The report also provides an in-depth analysis of recent news developments and investments

  • In June 2021, Terra Tech Corp.  announced that the successful merger with UMBRLA, Inc., doing business as Unrivaled. The company is focused on global expansion.
  •  In September 2020, the US Department of Agriculture announced that Farmers in North Carolina interested in cultivating hemp in 2022 will receive licenses as the state wraps up its pilot program in connection with federal rules that go into effect this year.

Company Profiles and Competitive Intelligence

The key players operating in the industrial hemp market are:

  • HempMeds Brasil
  • Terra Tech Corp.
  • American Cannabis Company, Inc.
  • HempFlax B.V.
  • Industrial Hemp Manufacturing, LLC
  • American Hemp
  • Parkland Industrial Hemp Growers Cooperative Ltd.
  • CBD Biotechnology Co.
  • Botanical Genetics, LLC
  • Marijuana Company of America Inc
  • Hemp, Inc.
  • Boring Hemp Company
  • Plains Industrial Hemp Processing Ltd.
  • Ecofiber Industries Operations
  • Valley Bio Limited

Frequently Asked Questions (FAQs)

The global Industrial Hemp market was valued at USD 3.92 Bn in 2020 and is anticipated to reach USD 11.72 Bn by 2027.

The Industrial Hemp market is estimated to grow at a compound annual growth rate (CAGR) of 16.7%during the forecast period.

Asia Pacific is expected to hold the largest market share during the forecast period.

A few key players include, but are not limited to HempMeds Brasil, Terra Tech Corp., American Cannabis Company, Inc., HempFlax B.V., Industrial Hemp Manufacturing, LLC, American Hemp, Parkland Industrial Hemp Growers Cooperative Ltd., CBD Biotechnology Co., Botanical Genetics, LLC, Marijuana Company of America Inc, Hemp, Inc., Boring Hemp Company, Plains Industrial Hemp Processing Ltd., Ecofiber Industries Operations, and Valley Bio Limited

Complex regulatory framework is the major restraining factor that hampers the growth of the market.

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  1. Market Introduction
    1. Definition
    2. Scope Of The Study
    3. List Of Assumptions
    4. Market Structure
    5. Scope of the Study: Segmentation 
    6. Timeframe, Currency and Limitations
  2. Research Methodology
    1. 3P Research Approach
    2. Market Sizing Approach
    3. Data Sources
    4. Primary Research Coverage
  3. Executive Summary
    1. Market Summary
    2. Market Snapshot
    3. Regional Snapshot
    4. Country Snapshot
  4. Premium Insights
    1. Key Trend Analysis
    2. New revenue Pockets
    3. Pain Point Analysis
    4. Company Market Share Analysis, by Region
    5. Strategies Adopted-Benchmarking Heat Map
    6. Regulatory Landscape
    7. PESTEL Analysis
    8. Regional Lifecycle
    9. Competitive Benchmarking
  5. Market Overview & Competitive Landscape
    1. Competitive Landscape
    2. Investment Scenario by key Players
    3. Key Player Overview
    4. Product comparison
    5. Player Wise Geographic Presence
    6. Player Wise Target Customer Segment
    7. Recent News
      1. Product Launches & upgrades
      2. R&D / Innovation
      3. Merger & Acquisition
      4. JV & Partnership
      5. Recognition and others
  6. Market Segmentation (Market Size and Share Analysis)
    1. Global Market Size & Historic Growth
    2. Market Size by Source
      1. Organic
      2. Conventional
    3. Market Size by Hemp Type
      1. Fiber
      2. Seed
      3. Oil
    4. Market Size by Application
      1. Personal Care Products
      2. Pharmaceuticals
      3. Food & Beverages
      4. Others
  7. Market Dynamics
    1. Market Drivers
    2. Opportunities
    3. Value Chain Analysis
    4. Pricing Analysis
  8. COVID – 19 Opportunity Mapping
    1. Key Drivers & Anticipated Revival Period
    2. Key Trends Analysis
    3. Impact on End user Industry
    4. Opportunity Analysis
  9. Regional Market Analysis
    1. North America
      1. US
      2. Canada
    2. Europe
      1. UK
      2. Germany
      3. France
      4. Italy
      5. Spain
      6. Rest of Europe
    3. APAC
      1. China
      2. India
      3. Japan
      4. South Korea
      5. Rest of APAC
    4. Latin America
      1. Mexico
      2. Brazil
      3. Argentina
      4. Rest of LATAM
    5. Middle East & Africa
      1. GCC
      2. Rest of MEA
  10. Company Profiles
    1. HempMeds Brasil
      1. Company Fundamentals
      2. Financial Analysis (Subject to Availability)
      3. Product Portfolio
    2. Terra Tech Corp.
    3. American Cannabis Company, Inc.
    4. HempFlax B.V.
    5. Industrial Hemp Manufacturing, LLC
    6. American Hemp
    7. Parkland Industrial Hemp Growers Cooperative Ltd.
    8. CBD Biotechnology Co.
    9. Botanical Genetics, LLC
    10. Marijuana Company of America Inc
    11. Hemp, Inc.
    12. Boring Hemp Company
    13. Plains Industrial Hemp Processing Ltd.
    14. Ecofiber Industries Operations
    15. Valley Bio Limited

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