September 17, 2025 – New York, USA – The global industrial hemp market, valued at USD 6.43 billion in 2024, is projected to grow from USD 7.51 billion in 2025 to an impressive USD 26.24 billion by 2033, achieving a robust CAGR of 16.92% during the forecast period (2025-2033), according to a comprehensive report by Straits Research. This remarkable growth is fueled by increasing legalization of hemp cultivation, rising demand for functional foods, and innovative product developments in industries such as food, textiles, and biofuels.
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Rising Demand for Hemp in Food and Beverage Industry
The surge in demand for hemp seeds and hemp oil in the food industry is a key driver of market expansion. Industrial hemp, a variety of Cannabis Sativa with low tetrahydrocannabinol (THC) content, is rich in essential nutrients like vitamins E, B1, B2, D, B6, potassium, magnesium, calcium, and omega-3 and omega-6 fatty acids. Its high protein content makes it a valuable addition to vegetarian and vegan diets, while its low saturated fat and absence of trans-fats make it ideal for functional foods. According to the Institute of Food Technologists (IFT), global functional food sales reached USD 267 billion in 2020, highlighting the growing consumer preference for health-focused products.
Hemp-based food products, approved by the FDA for their lack of psychoactive compounds, are gaining traction, particularly in North America, where functional food sales hit USD 63 billion in 2020. The increasing popularity of cannabis-infused beverages and dietary supplements is further propelling market growth.
Legalization Fuels Innovation and Market Opportunities
The global trend toward legalizing industrial hemp cultivation is encouraging market players to innovate and develop new products, including bioplastics, biofuels, and bio-ethanol. Hemp biodiesel, with a reported conversion efficiency of 97% according to a 2019 University of Connecticut study, is emerging as a sustainable alternative amid rising fuel prices and environmental concerns. The versatility of hemp fiber in textiles, paper, construction, and automotive industries, combined with its renewable properties, positions it as a high-potential material for eco-friendly applications.
Key market players such as Hemp Inc., Ecofibre, and HempFlax BV are capitalizing on these opportunities by expanding their product portfolios to include sustainable solutions like biodegradable plastics and animal feed.
For more information, download the full report or request a sample at Straits Research : https://straitsresearch.com/report/industrial-hemp-market/request-sample
North America Leads the Market
North America dominates the global industrial hemp market, driven by the legalization of hemp in 36 U.S. states and four territories for medical use, and 15 states and three territories for recreational use as of November 2020. The region’s growing demand for functional foods and cannabis-infused drinks, coupled with favorable regulatory frameworks, is expected to sustain its market leadership. The U.S. alone accounts for the largest share of global hemp consumption, supported by policies such as grower licensure and seed certification.
Challenges: Regulatory Complexities
Despite its growth potential, the industrial hemp market faces challenges due to stringent and varied regulations across countries and regions. Compliance with diverse legal standards for hemp cultivation, production, and sales, particularly regarding CBD and THC content, creates complexities for market players. These regulatory hurdles hinder global trade and market expansion, especially in regions where hemp cultivation remains restricted.
Organic Segment Gains Momentum
The market is segmented into organic and conventional hemp, with the conventional segment holding the largest share in 2019. However, the organic segment is growing rapidly due to increasing consumer awareness of organic products’ health and environmental benefits. According to the Food and Agricultural Organization (FAO), organic farming spanned over 71 million hectares globally in 2018, with approximately 2.8 million organic producers, reflecting a 3% growth from 2017.
Key Market Segments and Players
The industrial hemp market is segmented by product type (fiber, seeds, shives, others) and application (food and beverage, personal care, textiles, pharmaceuticals, paper, others). Hemp fiber dominates due to its widespread use in textiles, construction, and bioplastics, while hemp seeds are the fastest-growing segment, driven by FDA approvals and their nutritional benefits.
For more information, download the full report or request a sample at Straits Research : https://straitsresearch.com/report/industrial-hemp-market/request-sample
Leading companies in the market include:
Parkland Industrial Hemp Growers Cooperative Ltd. (PIHG)
Hempco
Ecofibre
Hemp Inc.
HempFlax BV
Botanical Genetics, LLC
Canah International
Hemp Oil Canada
Future Outlook
With increasing legalization, growing consumer demand for sustainable and functional products, and advancements in hemp-based innovations, the industrial hemp market is poised for exponential growth. Market players are encouraged to focus on product diversification and sustainable solutions to capitalize on emerging opportunities in biofuels, bioplastics, and functional foods.
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