Industrial Hemp Market Report 2026

The industrial hemp market size has grown rapidly in recent years. It will grow from $8.72 billion in 2025 to $10.32 billion in 2026 at a compound annual growth rate (CAGR) of 18.4%. The growth in the historic period can be attributed to early legalization initiatives, rising awareness of hemp sustainability, initial adoption in textiles, demand for plant-based nutrition, expansion of natural fiber applications.

The industrial hemp market size is expected to see rapid growth in the next few years. It will grow to $20.02 billion in 2030 at a compound annual growth rate (CAGR) of 18%. The growth in the forecast period can be attributed to growing demand for hemp-based construction materials, increasing adoption in pharmaceuticals, rising preference for organic hemp cultivation, development of advanced hemp composites, expansion of hemp-derived personal care products. Major trends in the forecast period include expansion of hemp-based construction materials, rising adoption of hemp in textile manufacturing, growing demand for nutrient-rich hemp seeds, increased use of hemp hurd in animal bedding, growth in industrial applications of hemp bio-composites.

The increasing demand for sustainable and eco-friendly products is expected to drive the growth of the industrial hemp market going forward. Sustainable and eco-friendly products are goods designed to minimize environmental impact by using renewable resources, reducing waste, and supporting ecological balance. This rising demand is fueled by growing environmental awareness, regulatory pressures, consumer preference for green alternatives, and corporate commitments to reducing carbon footprints. Industrial hemp is recognized for its rapid growth and minimal resource requirements. It needs fewer pesticides and herbicides than conventional crops, helping reduce chemical runoff and soil degradation. For example, in April 2025, according to the USDA National Agricultural Statistics Service (NASS), a U.S.-based government agency, open-field hemp fiber production in 2024 reached an estimated 60.4 million pounds, reflecting a 23% increase compared to 2023. Therefore, the increasing demand for sustainable and eco-friendly products is driving the industrial hemp market.

Key companies in the industrial hemp sector are concentrating on creating innovative products, such as biochar derived from industrial hemp, which helps sequester carbon, enhance soil health, and generate revenue through carbon credits while promoting sustainable agricultural practices. Biochar produced from industrial hemp improves soil fertility and facilitates carbon sequestration, offering a sustainable solution that benefits both agriculture and the environment. For instance, in June 2024, Hempalta Corp., a Canadian agricultural technology firm, introduced a new biochar product. This carbon-rich material is created from organic matter, including industrial hemp, through a process called pyrolysis, which involves heating biomass at high temperatures in an oxygen-limited environment to capture carbon. The resulting product improves soil fertility and health by increasing organic carbon content, enhancing water retention, and fostering beneficial microbial activity. Additionally, it transforms agricultural waste into a valuable resource, allowing farmers to generate revenue through carbon credits since biochar qualifies for carbon removal initiatives. This product has versatile applications in landscaping, construction as part of hempcrete, and environmental remediation, making it an eco-friendly solution that bolsters agricultural productivity and aids in climate change mitigation.

In April 2024, SynBiotic SE, a Germany-based manufacturer of industrial hemp, acquired Ilesol Pharmaceuticals d.o.o. for an undisclosed amount. This acquisition allows SynBiotic to integrate an independent production facility for cannabinoid extracts, thereby strengthening its supply chain, increasing its market presence in Europe, and enhancing its competitiveness within the expanding hemp industry. Ilesol Pharmaceuticals d.o.o. is a Croatia-based manufacturer of industrial hemp.

Major companies operating in the industrial hemp market are Curaleaf Holdings Inc., Aurora Cannabis Inc., Konoplex Group, Plains Industrial Hemp Processing Ltd., Manitoba Harvest Hemp Foods Information, Ecofibre Limited, Elixinol, HempFlax Group BV, PureHemp Technology, Zelios, Parkland Industrial Hemp Growers Cooperative Ltd., Marijuana Company of America Inc., IND HEMP LLC, Blue Sky Hemp Ventures Ltd., Bombay Hemp Company, Panda Biotech LLC, HempMeds Brasil, Hempro International GmbH, Dun Agro Hemp Group, Greenfield Paper Company, Hempco Food and Fiber Inc., Bast Fibre Technologies Inc., Treehouse Biotech, The Hemp Mine, Bastcore Inc., Bluebird Botanicals, South Hemp Tecno Srl.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on imported hemp-processing machinery, agricultural inputs, and fiber extraction equipment have increased production and processing costs, particularly affecting hemp bast and hurd manufacturers in regions dependent on foreign technology such as North America and Europe. These tariffs slow expansion within construction materials, textiles, and personal care segments; however, they also encourage domestic manufacturing of hemp-processing equipment, fostering localized supply chains and reducing long-term import dependence.

The industrial hemp market research report is one of a series of new reports that provides industrial hemp market statistics, including industrial hemp industry global market size, regional shares, competitors with an industrial hemp market share, detailed industrial hemp market segments, market trends and opportunities, and any further data you may need to thrive in the industrial hemp industry. This industrial market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Industrial hemp is a specific variety of the Cannabis sativa plant cultivated for industrial purposes, such as fiber, seed, and oil production. This type of hemp contains only minimal levels of THC (tetrahydrocannabinol), the psychoactive component more prevalent in marijuana. Industrial hemp is valued for its versatility and its potential as a sustainable crop.

The primary types of industrial hemp include hemp seeds, hemp seed oil, cannabidiol (CBD) hemp oil, hemp bast, and hemp hurd. Hemp seeds are small, nutrient-rich seeds from the hemp plant, abundant in protein, healthy fats, and vitamins. These seeds can be sourced from both conventional and organic methods. Industrial hemp finds application in various sectors, including food and beverages, textiles, pharmaceuticals, personal care products, animal nutrition, paper, and construction materials, among others.North America was the largest region in the industrial hemp market in 2025. The regions covered in the industrial hemp market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial hemp market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The industrial hemp market consists of sales of dual-purpose hemp, and hemp for biocomposites. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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