The global industrial hemp market is experiencing significant expansion and is expected to reach USD 60.6 billion by 2030, growing at a compound annual growth rate (CAGR) of 20.2%. The market, valued at USD 20.1 billion in 2024, is driven by the increasing legalization of hemp cultivation across the globe, a surge in the demand for sustainable products, and the expanding applications of hemp in diverse industries.

Key drivers fueling this growth include the rising use of hemp fibers in textiles, construction, and automotive applications, the growing popularity of hemp oil in the food and beverage industry, and advancements in cultivation technology. Furthermore, with the growing demand for natural, organic, and health-conscious products, hemp's role in personal care, pharmaceuticals, and CBD-based wellness products is becoming more pivotal.

Regional Insights

The European region is expected to maintain its dominance in the industrial hemp market, with a forecasted robust growth trajectory. North America, however, is anticipated to witness the fastest growth, as increasing numbers of U.S. states and countries within Europe legalize hemp farming for both fiber and CBD extraction.

Product Trends

The hemp fiber category is currently the largest in the market, representing 45% of the total market share in 2024. This is followed by hemp oil, which is expected to see the highest growth rate during the forecast period. As more consumers seek out the nutritional benefits of hemp, especially its essential fatty acids and amino acids, hemp oil is becoming a staple in health-conscious product lines.

Conclusion

As the industrial hemp market evolves, it offers numerous opportunities for businesses to tap into sustainable and profitable avenues. The legalization of hemp farming in more regions, combined with growing environmental concerns, positions the market for dynamic growth across multiple applications.

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