Industrial Hemp Market Set to Surge to $25.7 Billion by 2034
The global industrial hemp market is projected to grow from its current valuation of $6.6 billion to $25.7 billion by 2034, largely driven by sustainable innovation, according to a new market report by research and consulting firm Fact.MR. Under this projection, industrial hemp sales are expected to increase at a compound annual growth rate (CAGR) of 14.5 percent over the next ten years.
Analysts believe the versatile applications of industrial hemp will fuel the expected growth, with great economic potential spanning industries including textiles, construction, biofuels, and nutritional supplements. The eco-friendly attributes of hemp, including its minimal need for pesticides and herbicides, carbon sequestration abilities, and soil remediation properties, are seen as increasingly appealing to environmentally conscious consumers.
Key findings from the market report include:
Organic hemp sales are expected to reach $3.2 billion in 2024.
Hemp seed sales are projected to reach $13.7 billion by 2034.
Mexico’s market is forecasted to grow at a CAGR of 13.6% from 2024 to 2034.
East Asia’s industrial hemp revenue is projected to hit $5.9 billion by 2034.
South Korea’s market is expected to hit $1.4 billion by 2034.
North America is anticipated to hold a 24.3% global market share by 2034 with a projected value of $2.9 billion.
Prominent market players include HempFlax Group B.V., American Hemp, Manitoba Harvest, and Endoca.
“Use of industrial hemp in textiles, medicines, and food, coupled with global sustainability trends, is creating opportunities for suppliers,” the report states. “Governments worldwide are collaborating to boost global hemp distribution. Hemp suppliers are benefiting from the legality of industrial hemp farming due to government backing across borders. Furthermore, the growing number of legal industrial hemp production countries promotes hemp farming globally.”
The automotive industry is exploring hemp fibers for lighter, stronger, and more sustainable car parts, potentially enhancing fuel efficiency and reducing emissions. In biotechnology, hemp-derived compounds like cannabidiol (CBD) are being researched for therapeutic applications.
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