Market Size of Industrial Hemp Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.60 Billion |
| Market Size (2029) | USD 5.84 Billion |
| CAGR (2024 - 2029) | 17.56 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Industrial Hemp Market Analysis
The Industrial Hemp Market size is estimated at USD 2.60 billion in 2024, and is expected to reach USD 5.84 billion by 2029, growing at a CAGR of 17.56% during the forecast period (2024-2029).
The market was negatively impacted by COVID-19 in 2020. Manufacturing and construction activities have come to a halt as a result of the lockdowns. The outbreak of COVID-19 also brought several short-term and long-term consequences to the construction industry. According to the Associated General Contractors of America (AGC), there were disruptions to work or canceled projects and hence less demand for 'non-essential' projects, like offices, entertainment, and sports facilities, in the initial months of 2020. Furthermore, in 2021, the demand for the market studied has recovered and is expected to grow at a significant rate in the coming years.
- Over the short term, major factors driving the market studied are the huge demand for industrial hemp products across diverse applications and highly functional applications in the healthcare sector.
- On the flip side, stringent regulations associated with hemp are hindering the growth of the market.
- The eco-friendly nature of hemp, with a low carbon footprint, extensive Research and Development activities, and recent regulations related to hemp, is expected to offer lucrative opportunities for the growth of the market.
- North America region is expected to grow at the fastest rate across the world, with the largest consumption from countries such as the United States and Canada.
