North America And Oceania Industrial Hemp Market Size, Share & Trends Analysis Report By Product (Seeds, Fiber, Shives), By Application (Textile, Animal Care, Food & Beverages, Personal Care), By Region, And Segment Forecasts, 2025 - 2030

Market Size & Trends

The North America and Oceania industrial hemp market size was valued at USD 2.35 billion in 2024 and is expected to grow at a CAGR of 20.5% from 2025 to 2030. This growth is attributed to the increasing demand for eco-friendly and sustainable products. In addition, the legalization of hemp cultivation in the U.S. and Canada has opened opportunities for large-scale farming, allowing for greater production and innovation. Furthermore, favorable regulations, technological advancements in cultivation and processing, and government support are also key drivers. Rising consumer awareness of hemp's environmental benefits and versatility across industries such as textiles, construction, and food fuels market expansion. Furthermore, hemp's potential in bioplastics and biofuels further enhances its appeal.

Industrial hemp, defined as any cannabis plant containing less than 0.3% tetrahydrocannabinol, is increasingly recognized for its versatile applications in North America and Oceania. As these regions focus on sustainable development, innovative products such as lime hemp concrete, fiber-board insulation, and hemp wool are gaining traction in the construction sector. This shift is driven by the need to reduce energy consumption and greenhouse gas emissions, prompting a surge in demand for carbon-neutral materials. Consequently, hemp concrete, which acts as a carbon sequester, is becoming a preferred choice for enhancing building energy efficiency.

In addition, governments in North America and Oceania are launching initiatives to support the hemp industry by improving processing and manufacturing facilities. Subsidies are being offered to help manufacturers cover high production costs, thereby encouraging hemp companies to expand their operations. The recent introduction of new hemp-based products, such as advanced insulation materials and sustainable building components, further fuels market growth. Furthermore, the growing popularity of hemp in textiles, pharmaceuticals, and food sectors is creating lucrative opportunities for international trade, particularly as countries without legalized hemp cultivation seek imports.

Moreover, as consumer demand for sustainable products escalates, new launches of hemp-based products are becoming a key factor in market expansion. These launches not only cater to local needs but also position North America and Oceania as significant players in the global hemp market. Furthermore, partnerships and collaborations between manufacturers are facilitating the expansion of distribution networks, enhancing the region's role in the international hemp trade.

Product Insights

The seeds segment dominated the North America and Oceania industrial hemp industry and accounted for the largest revenue share of in 2024, primarily driven by increasing demand for plant-based and sustainable products. In addition, favorable regulations and robust distribution networks further support market expansion, particularly in Canada and the U.S., where hemp seeds are valued for their protein and essential fatty acids. Furthermore, legalization and rising awareness of hemp's nutritional benefits have boosted its use in health and wellness applications. This trend is expected to continue as consumers seek healthier options.

The fiber segment is expected to grow at a CAGR over the forecast period due to the growing demand for eco-friendly materials in textiles and construction. Industrial hemp fibers offer sustainable alternatives, enhancing energy efficiency and reducing environmental impact. In addition, government support and technological advancements in processing are key drivers, improving fiber quality and availability for numerous applications. Furthermore, the trend towards green building solutions and renewable materials fuels the demand for hemp fibers in North America and Oceania.

The shivs segment is expected to progress at a CAGR of 17.2% in terms of revenue over the forecast period owing to its rising use in animal bedding materials due to its high absorption ability. In addition, the material can be degraded to produce quality compost by rotting. Shivs are also used in combination with lime in manufacturing construction materials (block and Crete), which are likely to drive its demand in North America and Oceania over the projected period.

Application Insights

The textiles segment led the market with the largest revenue share of in 2024. This growth is attributed to the increasing demand for sustainable fabrics. Hemp's breathability, durability, and eco-friendly properties make it a preferred choice over traditional materials such as cotton. In addition, consumer awareness of environmental benefits and the versatility of hemp fibers in clothing and upholstery further fuel this trend. Furthermore, advancements in processing technologies have improved the quality and affordability of hemp textiles, making them more accessible to a wider range of consumers and manufacturers.

Automotive is expected to be the fastest growing segment with a CAGR from 2025 to 2030 owing to hemp's potential to reduce vehicle weight and carbon footprint. Hemp-based components offer sustainable alternatives for car parts, aligning with the industry's shift towards green technologies. As the North American market matures, knowledge transfer from European manufacturers is expected to enhance hemp integration in automotive manufacturing. Furthermore, hemp composites are being used in interior components and body panels, providing improved insulation and structural integrity while reducing environmental impact. This integration supports the automotive industry's efforts to meet stringent emissions standards and appeal to environmentally conscious consumers.

The food & beverages segment is the second-largest segment and accounted for a revenue share of over 25.0% in the market for industrial hemp in North America and Oceania in 2024. The growth of the segment can be attributed to the rising use of derived oil in manufacturing food & beverages owing to its high nutritional, protein, and fatty acid content. Hemp protein powder, which offers around 15 grams of protein per offering, is widely consumed by athletes in North America and Oceania regions.

Regional Insights

North America Industrial Hemp Market Trends

North America's industrial hemp market dominated the North America and Oceania industrial hemp industry and accounted for the largest revenue share in 2024, driven by the rising demand for sustainable products, especially in textiles and construction. Authorization of hemp cultivation in the U.S. and Canada has opened opportunities for large-scale farming, enhancing supply chains. In addition, government support and technological advancements in processing further fuel market expansion, making hemp a preferred choice for eco-friendly materials. Furthermore, as consumer awareness of environmental benefits increases, hemp's use in various sectors is expanding, contributing to the market's rapid growth and positioning North America as a leader in the global hemp industry.

U.S. Industrial Hemp Market Trends

The industrial hemp market in the U.S. led the North American market and held the largest share in 2024, owing to the legalization of hemp cultivation under the 2018 Farm Bill. This has encouraged farmers to explore hemp farming, increasing the availability of hemp-based products. Furthermore, hemp's potential in textiles and construction is being explored, further enhancing its appeal.

Oceania Industrial Hemp Market Trends

The Oceania industrial hemp market is expected to grow at a CAGR of 14.5% over the forecast period, growing as countries such as Australia legalize hemp cultivation, leading to increased production and demand for hemp-based products. In addition, the region's focus on sustainable living and hemp's versatility in applications such as food, construction, and textiles fuels market expansion. Furthermore, government initiatives to support hemp farming play a crucial role, while international trade opportunities also contribute to the market's growth. Moreover, as awareness of hemp's environmental benefits increases, its use in various sectors is expanding, positioning Oceania as a significant player in the global hemp market with potential for further expansion.

Key North America And Oceania Industrial Hemp Company Insights

Key players in the North America and Oceania industrial hemp industry include Fresh Hemp Foods Ltd., IND HEMP, LLC., Blue Sky Hemp Ventures, and others. These companies adopt and employ strategies such as collaborations, joint ventures, and product launches to enhance production capabilities and expand market share

• Fresh Hemp Foods Ltd. operates in the food segment of the industrial hemp market, manufacturing a range of products, including hemp hearts, hemp oil, and hemp protein powders.

• Hemp Foods Australia operates in the food and health segment, focusing on hemp-based products such as hemp seeds, hemp oil, and hemp protein powders. The company deals in nutritional supplements and food ingredients, leveraging hemp's nutritional benefits to create sustainable and healthy products.

Recent Developments

• In April 2024, Panda Biotech commenced commercial operations in Wichita Falls, Texas, at its Panda Hemp Gin facility. This landmark industrial hemp processing facility is the largest in the Western Hemisphere, proficient in processing 10 metric tons per hour of industrial hemp into hurd, textile-grade fiber, and other sustainable products.

• In February 2024, Hempz expanded its Beauty Actives Collection and launched new Herbal Body Oils. This expansion reflects the growing demand for beauty products infused with industrial hemp.

North America And Oceania Industrial Hemp Market Report Scope

North America And Oceania Industrial Hemp Market Report Segmentation

This report forecasts revenue growth at regional, and country levels and analyzes the latest industry trends in each sub-segment from 2018 to 2030. For this study, Grand View Research has segmented the North America and Oceania industrial hemp market report based on product, application, and region.

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Seeds

  • Fiber

  • Shives

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Animal care

  • Textiles

  • Automotive

  • Furniture

  • Food & Beverages

  • Paper

  • Construction Materials

  • Personal Care

  • Other

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Oceania

    • Australia

    • New Zealand