GVR Report cover Industrial Hemp Market Size, Share & Trends Report

Industrial Hemp Market Size, Share & Trends Analysis Report By Product (Seeds, Fiber, Shives), By Application (Textiles, Personal Care, Food & Beverages, Animal Care), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-389-8
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 161

Report Overview

The global industrial hemp market size was valued at USD 3.61 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 16.2% from 2021 to 2028. The growing demand for industrial hemp in food and beverage products for its dietary benefits is expected to drive the product demand. Moreover, the medicinal benefits offered by the product are likely to support the demand. The COVID-19 outbreak across the globe has negatively impacted the manufacturing industries on account of the closure of construction operations and related services. The suspension of trade across the globe has further disrupted the demand-supply of hemp materials in 2020, thus negatively impacting the market growth.

U.S. industrial hemp market size, by product, 2018 - 2028 (USD Million)

The growing preference for eco-friendly products in thermal insulation, construction materials, fiberglass alternatives, and automotive products is expected to drive the market over the forecast period. The growing demand for technical products such as varnishes, solvents, oil paints, printing inks, fuel, chain-saw lubricants, putty, and coatings is expected to have a major impact on the market growth.

In addition to the direct benefits of hemp in terms of reducing the environmental impact of crop production, the products manufactured from hemp are eco-friendly, renewable, and associated with less harmful methods of preparation. Paper produced from hemp fiber, for instance, requires fewer chemicals for processing as compared to paper produced from wood pulps.

Hempseed and hempseed oil’s beneficial dietary properties, along with the growing demand for industrial hemp from the cosmetics and personal care industries for the production of soaps, shampoo, bath gels, hand and body lotions, UV skin protectors, massage oils, and a range of other products on account of its high and well-balanced fatty acid content, is expected to have a major impact on the market growth.

Regulators such as the Controlled Substances Act of 1970, Agricultural Act of 2014, the 2014 Farm Bill, U.S. Drug Enforcement Agency (DEA), and Industrial Hemp Act 2017 set legislative procedures and allowed THC content in the industrial hemp cultivation, processing, marketing, distribution, and consumption, which has majorly influenced the market growth.

Product Insights

Seeds held the largest volume share of over 40.0% in 2020. Rising demand for oil, seed cakes, and food matter from the food and nutraceutical markets owing to the high fatty acid content and nutritional value has supported the demand for hemp seeds. Seeds are majorly used to produce hemp oil, which is consumed in the food and beverages, personal care, and animal feed industries.

The outer portion of the hemp stalk contains bast fibers, which are majorly used in the textile industry for the manufacturing of yarns, spun fibers, and a range of consumer and industrial textiles. Fibers are also used in paper, carpeting, home furnishing, construction materials, insulation materials, auto parts, and composites.

Hemp fibers are robust, contain a high amount of hemicellulose, and have a high absorbent capacity. These factors make hemp a useful crop for the textile industry. Hemp biocomposites are largely used for molding in automotive parts and components. The growing trend of weight reduction in vehicles is expected to offer growth prospects for hemp fibers, which can offer high strength to the components.

Shives or hurd is the inner core part of the hemp stalks and a short woody fiber harvested from industrial hemp crops. Hemp shives cost half the value of fibers and have several applications in different industries, which is expected to fuel the market growth over the forecast period. Hemp shives are majorly used in animal bedding materials on account of their high absorbance ability, which is around four times its own dry weight.

Application Insights

The textiles application segment led the market and accounted for a revenue share of more than 20.0% in 2020. The rising demand for consumer textiles including apparel, fabrics, denim, fine textiles, and industrial textile products such as twine, rope, nets, canvas bags, tarps, carpets, and geotextiles is expected to support the market growth over the projected period.

Hemp fibers are used in fabrics and textiles, yarns and spun fibers, carpeting, home furnishing, construction materials, paper, insulation materials, auto parts, and composites. Hurds are used in animal bedding, oil absorbents, and paper-making. Hemp seeds and oil cakes are used in food and beverages and used as an alternative protein source in food and feed.

Global industrial hemp market share, by application, 2020 (%)

Industrial hemp products are widely used in automotive products such as auto parts, oil paints, coatings, lightweight hemp plastics, and related composites and are also used as an alternative to fiberglass in the automotive and aviation sectors. Several European automobile manufacturers are adopting natural fiber composites on account of the increasingly stringent regulations related to harmful synthetic materials, which is expected to drive the market over the forecast period.

Hemp oil is widely used in the manufacturing of food and beverages on account of its high nutritional content, including proteins, fatty acids, and several other ingredients. Hemp seeds and oil are used in several food manufacturing processes, which is expected to drive the market due to the increasing consumer awareness regarding the benefits associated with hemp products.

Regional Insights

Asia Pacific dominated the market and accounted for a revenue share of over 30.0% in 2020. Increasing global demand for industrial hemp and advancing technologies and innovation are making harvesting easier for cultivators, thereby changing the face of hemp production in the region.

China was the largest producer and exporter of industrial hemp, hemp products, and end-use products including paper and textiles in 2020. Industrial hemp is cultivated in more than 20 provinces of China, with Heilongjiang, Yunnan, Shanxi, and Anhui being the leading producers. The presence of leading manufacturers and the adoption of hemp in manufacturing operations are likely to support the demand for products.

Industrial hemp production, consumption, and transportation are strictly controlled by various laws in North America. There is still no large-scale commercial production in the U.S. and the market majorly depends on imports. American drug and controlled substance laws and the Food & Drug Administration regulate the market; only hemp with a tetrahydrocannabinol (THC) concentration of less than 0.3% is allowed for cultivation and consumption.

The European hemp industry focuses on industrial applications of hemp such as automotive and construction materials. Hemp grown in Romania, Hungary, France, Slovenia, and many other European countries is increasingly being used in industrial applications. Europe’s hemp production reached 60,000 acres in 2016, indicating a 300% increase in the previous 5 years.

Key Companies & Market Share Insights

The market is gaining high momentum as several application industries are adopting the use of hemp products owing to its benefits. Players involved in the market produce variable quantities and qualities of industrial hemp as well as variants, in terms of seed size and oil composition. Potential yields and processing methods and technologies used for processing, along with the cost of production and returns, play a major role in driving the competition in the market. Some of the prominent players in the global industrial hemp market include:

  • Parkland Industrial Hemp Growers Cooperative Ltd.

  • CBD Biotechnology Co.

  • Botanical Genetics, LLC

  • Marijuana Company of America Inc.

  • HempMeds Brasil

  • Terra Tech Corp.

  • American Cannabis Company, Inc.

  • HempFlax B.V.

  • Industrial Hemp Manufacturing, LLC

  • American Hemp

  • Hemp, Inc.

  • Boring Hemp Company

  • Plains Industrial Hemp Processing Ltd.

  • Ecofiber Industries Operations

  • Valley Bio Limited

Industrial Hemp Market Report Scope

Report Attribute


Market size value in 2021

USD 4.13 billion

Revenue forecast in 2028

USD 12.01 billion

Growth Rate

CAGR of 16.2% from 2021 to 2028

Base year for estimation


Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Volume in tons, revenue in USD million/billion, and CAGR from 2021 to 2028

Report coverage

Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; China; India; Japan; Brazil

Key companies profiled

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

Customization scope

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Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global industrial hemp market report on the basis of product, application, and region:

  • Product Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

    • Seeds

    • Fiber

    • Shives

  • Application Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

    • Animal Care

    • Textiles

    • Automotive

    • Furniture

    • Food & Beverages

    • Paper

    • Construction Materials

    • Personal Care

    • Others

  • Regional Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

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