Hemp Protein Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Hemp Protein Market Trends and Insights

Rising popularity of plant-based and vegan protein sources

Consumer transition toward plant-forward diets extends beyond lifestyle into supply-chain strategy, and the hemp protein market benefits because hemp cultivation needs less water than soy, wheat, or pea. According to the Good Food Institute, in 2024, around 40% of adults in Germany and the UK plan to increase their plant-based food consumption. Health reasons account for 48% of this shift, while environmental concerns represent 29%, and animal welfare considerations comprise 25%^{[1]Source: The Good Food Institute, " State of the Industry 2024", www.gfi.org}. Companies are leveraging the dual-purpose nature of hemp crops, which enables the simultaneous recovery of fiber and protein, thereby reducing the cost per functional unit. The European Union's Circular Economy Action Plan, which targets the development of sustainable textiles by 2030, has significantly increased the demand for hemp stalks. This growing demand not only enhances the economic value of hemp but also lowers the overall cost of protein feedstock. For example, Manitoba Harvest and Brightseed have recently launched an upcycled hemp-hull fiber supplement. This product utilizes material that was previously considered waste, effectively transforming circularity into a profitable margin opportunity.

Growing prevalence of lactose and soy allergies driving alternative proteins

As dietary preferences increasingly move away from dairy-derived and soy proteins, hypoallergenic hemp formulations are gaining prominence by securing "free-from" labels, which enable them to command higher price points. A double-blind crossover study, published in the American Journal of Clinical Nutrition, demonstrated that hemp seed protein and its hydrolysate significantly reduced blood pressure when compared to casein. This pivotal finding has elevated hemp from being merely a macronutrient to a nutraceutical with potential health benefits. The market has responded to this shift: In February 2025, The Simply Good Foods Company acquired the allergen-free shake brand OWYN for USD 280 million, emphasizing the growing commercial importance of allergen-conscious product positioning. Additionally, as the FDA enforces stricter labeling regulations for plant-protein analogs, hemp protein's minimal and straightforward ingredient profile emerges as a distinct competitive advantage in the market.

Regulatory relaxation for industrial hemp cultivation

The normalization of hemp cultivation is enhancing supply chain stability, enabling large-scale food manufacturers to expand from niche health food markets into mainstream grocery channels. The recent feed approval has established a regulatory precedent for the safety of hemp protein across various applications, reducing compliance challenges for human food manufacturers. Panda Biotech's flagship hemp processing facility in Texas, with a capacity to process 10 metric tons of industrial hemp per hour, highlights the infrastructure scale required to support mainstream adoption. This facility employs a zero-waste process powered by renewable energy, addressing sustainability concerns while achieving industrial-scale efficiency. In China, industrial hemp breeding programs, particularly in Heilongjiang and Yunnan provinces, are focused on optimizing yields and enhancing quality traits, potentially creating supply chain advantages for protein extraction applications.

Expansion in functional foods and nutraceuticals

Hemp protein, recognized for its distinctive bioactive compounds, is establishing itself as a premium functional ingredient rather than a standard commodity protein. This differentiation enables higher pricing, supported by emerging clinical evidence highlighting its health benefits. The increasing production of functional foods, particularly in China. The export value of health and functional food in China was USD 4,275 million in 2024^{[2]Source: China Chamber of Commerce for Import and Export of Medicines and Health Products, "Analysis of China's foreign trade situation of nutritional and health foods 2024", www.cccmhpie.org.cn} (as reported by the China Chamber of Commerce for Import and Export of Medicines and Health Products), which is driving this demand. Brightseed scientists have identified bioactive lignanamides in hemp hulls, specifically N-trans-caffeoyltyramine and N-trans-feruloyltyramine, which demonstrate positive effects on gut health. These findings are now leveraged on functional beverage labels. Additionally, Applied Food Sciences has developed PurHP-75™, a product containing 75% protein and texturizing fibers that replicate the mouthfeel of meat, creating opportunities in the hybrid meat-alternative market.

Regulatory challenges and legal uncertainties

Although hemp cultivation, transportation, and processing are legal in many regions, farmers and processors often require specialized licenses. Regulatory authorities enforce rigorous testing and documentation to verify THC compliance, resulting in higher costs and delays. Inconsistent regulations regarding hemp content frequently lead to border delays, import restrictions, or product seizures for hemp protein products. These issues disrupt supply chains and limit global distribution, particularly in key markets such as the EU, China, and certain Middle Eastern countries. Differing rules on THC thresholds and novel-food approvals create significant scientific and legal challenges. In the EU, any new hemp derivative intended for consumption requires a detailed safety dossier. Additionally, Italy's 2024 court-supported bans on specific hemp products underscore the unpredictability of regulatory policies. However, established players with a recognized GRAS portfolio are well-positioned to capitalize on these market conditions.

Competition from alternative protein sources

 The rapid expansion of the pea protein market sets a challenging benchmark for hemp protein suppliers, who must not only achieve comparable growth but also prioritize consumer education regarding the superior amino-acid density of hemp protein. According to Agriculture and Agri-Food Canada, 36 new products featuring pea protein-based nutritional and meal replacement drinks were launched in Canada in 2023^{[3]Source: Agriculture and Agri-Food Canada, "Sector Trend Analysis – Plant-based protein food and drink trends in Canada", www.agriculture.canada.ca}. Pea protein continues to strengthen its position as a dominant competitor within the market. In May 2025, Bunge announced a significant investment of EUR 484 million to establish a new soy processing plant in the United States, while Louis Dreyfus introduced a state-of-the-art pea-isolate production facility in Saskatchewan. These strategic initiatives underscore the substantial scale and cost efficiencies leveraged by established players in the soy and pea protein markets.

Segment Analysis

By Source: Organic Growth Accelerates Despite Conventional Dominance

In 2024, conventional cultivation remained dominant, contributing 84% of the hemp protein market's volume. Cost-conscious mass retail channels prefer lower-priced conventional inputs, while established agronomic practices continue to drive annual yield improvements. However, organic acreage is experiencing notable growth, as hemp's natural pest resistance minimizes certification costs. For example, Lithuania's emerging organic hemp exporters demonstrate how farmers can transition to premium categories without incurring significant agrochemical conversion expenses.

Organic product launches align with this agronomic trend. The global natural and organic food market is expanding, with protein-rich products outperforming the average growth of the category. Brands effectively leverage the consumer trust associated with organic certifications to justify premium pricing, enabling them to absorb higher raw material costs. The Hemp Fiber and Grain Association has introduced dedicated organic hemp grain programs that directly communicate price signals to farmers, ensuring a sustainable supply for processors. As a result, the organic segment is projected to achieve a 6.13% CAGR through 2030, exceeding the growth rate of the broader hemp protein market by over 100 basis points.

By Application: Supplements Drive Innovation Beyond Food Dominance

In 2024, food and beverage formulations represented a significant 94.89% of total revenue, with hemp being incorporated into bakery mixes, dairy alternatives, and ready-to-drink shakes. The expansive scale of the mass-market grocery sector means that even small percentage changes can result in substantial tonnage increases. Hemp's mildly nutty flavor integrates effectively into bars and cereals, while its natural emulsifying properties enhance the quality of plant-based milks. Recent advancements in protein isolates, such as Burcon's commercial-scale launch, provide formulators with a neutral-tasting, nearly undetectable option, enabling higher inclusion rates.

Conversely, the supplement sector stands out as the primary growth driver, with a strong CAGR of 5.92%. The increasing adoption of sports nutrition products is a key factor in this growth. Endurance athletes are progressively substituting dairy with hemp, which offers a complete amino acid profile and improved gut comfort. Success stories like OWYN have drawn the attention of larger strategic players, keeping them vigilant for acquisition opportunities. During the forecast period, analysts anticipate that capsule, gummy, and powder SKUs will increasingly occupy shelf space traditionally dominated by whey products. In the personal care segment, formulators are leveraging hemp peptides for their topical benefits. TRI-K's facility expansion highlights the commitment of ingredient suppliers to capitalize on this emerging opportunity.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

In 2024, Asia Pacific held a leading 47.67% share of the hemp protein market. China's breeding programs in Heilongjiang and Yunnan are enhancing seed yields and protein concentration, resulting in exportable surpluses for both fiber and food applications. Producers in the region are leveraging low production costs to supply high-volume clients in the snack and bakery industries. In contrast, Australia remains a smaller market participant, with its industry council working to secure funding for livestock-feed compliance, which could slow short-term growth.

North America is anticipated to achieve the highest CAGR of 5.42% through 2030, driven by coordinated policy measures and infrastructure improvements. For example, Panda Biotech's zero-waste mill in Texas supports multiple downstream users, effectively reducing logistical challenges between growers and processors. Furthermore, Canadian public funding, such as Protein Industries Canada's USD 6.9 million grant for alternative proteins, is advancing research and development efforts, particularly in developing concentrates with improved solubility. This investment aligns with a broader shift toward plant-based nutrition and alternative proteins. Hemp protein, with its complete amino acid profile, is especially appealing to vegan and vegetarian consumers.

Europe offers a balanced growth opportunity. The region's annual demand for vegetable proteins provides hemp processors with a viable market, supported by sustainability goals aligned with the EU Green Deal. However, challenges such as the high costs of Novel Food dossiers and inconsistent national THC regulations increase market risks, as evidenced by Italy's recent ban on oral CBD products. In North America, consumers are increasingly adopting plant-based proteins for purposes such as muscle building, weight management, and overall wellness. This trend is particularly prominent among fitness-conscious millennials and Gen Z, who favor hemp protein for its high fiber content, essential fatty acids, and digestibility.