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  • U.S. Industrial Hemp Market

U.S. Industrial Hemp Market By Product (Seeds, Fiber, and Shives), By Source, By Application - Industry Outlook, Key Companies (GenCanna, IND HEMP, Victory Hemp Foods, and Others), Trends and Forecast 2025-2034

Published on : June-2025  Report Code : RC-1579  Pages Count : 562  Report Format : PDF
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Market Overview

The U.S. Industrial Hemp market is predicted to be valued at USD 2,143.6 million in 2025 and is expected to grow to USD 12,713.3 million by 2034, registering a compound annual growth rate (CAGR) of 21.9% from 2025 to 2034.
the US Industrial Hemp Market regional forecast to 2034
The U.S. industrial hemp market is experiencing significant growth, driven by several key factors, including the increasing demand for eco-friendly and sustainable products. Hemp's versatility and durability make it an attractive option in automotive, construction, textiles, food and beverages, personal care, and more.
 
The growing preference for green building materials, including hemp-based insulation and sustainable automotive components, pushes the demand for hemp products. Additionally, its use in technical products like solvents, paints, coatings, and lubricants is contributing to the market’s expansion.

The U.S. market is also seeing increased opportunities due to favorable legislative changes. The 2018 Farm Bill legalized the cultivation of industrial hemp, sparking a surge in hemp farming and production across key states like Utah, Kentucky, Oregon, Colorado, and California. These states have capitalized on the rising demand for hemp, benefiting from the regulatory support that allows them to produce hemp for both research and industrial applications. The establishment of clear regulations by the U.S. Department of Agriculture (USDA) and the Drug Enforcement Agency (DEA) further supports the market’s growth, offering producers a well-defined framework for legal operations.

the US Industrial Hemp Market Growth Analysis

Another driving factor is the growing awareness among consumers about the environmental benefits of hemp. As more industries look to reduce their carbon footprints and embrace sustainability, the demand for hemp-based products is expected to rise. Furthermore, the expansion of hemp production, along with direct relationships between distributors and farmers, is fostering improved supply chains, ensuring high-quality products at competitive prices.

U.S. Industrial Hemp Market: Key Takeaways

  • U.S. Industrial Hemp Market Overview: The U.S. industrial hemp market is forecasted to reach a valuation of USD 2,143.6 million by 2025 and is anticipated to grow significantly to USD 12,713.3 million by 2034. This reflects a robust compound annual growth rate (CAGR) of 21.9% over the forecast period from 2025 to 2034.
  • Product Insights: Hemp seeds are projected to lead the market, accounting for 78.2% of the total revenue by the end of 2025.
  • Source Insights: Conventional hemp sources are expected to secure the largest market share, comprising 58.2% of the total revenue in 2025.
  • Application Insights: The food and beverage sector is set to emerge as the leading application area for industrial hemp in the U.S., with a projected revenue share of 35.3% in 2025.

U.S. Industrial Hemp Market: Use Cases

  • Textiles and Apparel: Hemp is widely used in the production of textiles and apparel due to the durability, breathability, and mold resistance of its fibers. Hemp clothing, shoes, and accessories have gained popularity as sustainable alternatives to cotton products.
  • Construction and Building Materials: In the construction industry, hemp is utilized as a green building material. A notable example is hempcrete, a mixture of hemp hurds and lime that is used for insulation and structural components.
  • Paper Production: Hemp can be processed into pulp for paper production, offering an alternative to wood pulp. Hemp paper is more durable, requires fewer chemicals to process, and is more easily recyclable.
  • Bioplastics and Composites: The automotive and packaging industries have embraced hemp for its potential in creating biodegradable plastics and composite materials. Hemp-based bioplastics are lightweight, strong, and renewable, making them ideal for car interiors, dashboards, and eco-friendly packaging.

U.S. Industrial Hemp Market: Stats & Facts

  • Hemp Fiber Growth in 2023: U.S. hemp fiber production increased 133% in 2023 to 49.1 million pounds, though the market value dropped 59% to $11.6 million. (Source: Hemp Foundation)
  • Water for Dry Matter: On average, approximately 300 to 500 liters of water are required to produce one kilogram of dry hemp matter, highlighting hemp's efficient water usage compared to other crops. (Source: Hemp Foundation)
  • Water for Usable Fiber: Producing one kilogram of usable hemp fiber requires around 2,123 liters of water, which is significantly less than the 10,000 liters typically needed to produce the same amount of cotton fiber. (Source: Hemp Foundation)

U.S. Industrial Hemp Market: Market Dynamics

Driving Factors in the U.S. Industrial Hemp Market

Rising Demand across Diverse Industries
The U.S. industrial hemp market is being propelled by increasing demand across a wide range of industries, including food and beverages, personal care, textiles, construction, and pharmaceuticals. Hemp’s versatility makes it suitable for products such as hemp milk, biodegradable plastics, and skincare formulations. As businesses seek sustainable raw materials, hemp offers an eco-friendly alternative that aligns with corporate environmental goals. This broad utility ensures consistent market traction and encourages further investment in processing infrastructure and supply chains, reinforcing hemp’s potential as a key agricultural commodity in the U.S.

Health and Wellness Trends
Growing consumer focus on natural health and wellness solutions is significantly boosting demand for hemp-derived products, especially those containing cannabidiol (CBD). Consumers are turning to CBD oils, supplements, and topicals for natural relief from anxiety, pain, and sleep disorders. This shift away from synthetic pharmaceuticals is fueling rapid market expansion for hemp-based wellness products. As scientific research and consumer education on hemp’s health benefits continue to expand, demand for safe, plant-based alternatives is expected to grow, further driving the market for industrial hemp in the United States.

Restraints in the U.S. Industrial Hemp Market

Agricultural and Supply Chain Challenges
Cultivating industrial hemp at scale presents significant agronomic and logistical hurdles. Farmers often struggle with limited access to certified seeds, unpredictable crop yields, and pests or diseases that lack standardized treatment methods. Moreover, hemp cultivation requires specific expertise, and many growers are still adapting best practices to local conditions. These factors contribute to inconsistent supply, making it difficult for manufacturers to ensure product quality and meet growing demand. The underdeveloped infrastructure for processing and distribution further adds to supply chain inefficiencies, ultimately limiting the market’s ability to scale sustainably.

Limited Processing Infrastructure
The industrial hemp industry in the U.S. suffers from a lack of sufficient and specialized processing infrastructure. Hemp requires unique equipment for decortication, fiber extraction, and CBD oil processing, which are not widely available across all regions. Many growers face logistical issues transporting raw hemp to distant processing facilities, increasing costs and reducing profitability. This infrastructure gap slows the development of a consistent supply chain and discourages farmers and manufacturers from entering or expanding within the hemp market. Large-scale adoption depends heavily on investment in localized, advanced processing capabilities that can handle various parts of the hemp plant efficiently.

Opportunities in the U.S. Industrial Hemp Market

Expanding Legal and Regulatory Support
Evolving federal and state regulations are opening new avenues for growth in the U.S. industrial hemp market. The 2018 Farm Bill legalized hemp cultivation, and ongoing efforts to standardize regulations across states are making it easier for businesses to enter and expand in the market. As regulatory clarity improves, particularly around the use of hemp in consumer products, companies can scale operations and innovate with more confidence. This regulatory momentum offers a significant opportunity for market players to strengthen supply chains, develop new products, and reach broader consumer bases nationwide.

Sustainable and Eco-Friendly Consumer
Rising environmental consciousness among U.S. consumers is creating a strong opportunity for hemp-based products, which are viewed as more sustainable compared to conventional materials. Industrial hemp uses less water, requires fewer pesticides, and helps improve soil health. These characteristics appeal to eco-conscious consumers and businesses looking to reduce their environmental footprint. As sustainability becomes a key purchasing factor, the demand for biodegradable hemp plastics, sustainable textiles, and eco-friendly construction materials is expected to rise, providing fertile ground for innovation and growth in the industrial hemp sector.

Trends in the U.S. Industrial Hemp Market

Diversification of Hemp-Based Consumer Products
The U.S. industrial hemp market is witnessing a trend toward greater diversification of consumer products, ranging from CBD-infused edibles and beverages to hemp-based cosmetics, pet care items, and apparel. Brands are leveraging hemp's multifunctionality to innovate across multiple segments, responding to consumer interest in natural and sustainable alternatives. 

This trend is not only expanding product categories but also increasing mainstream acceptance of hemp in everyday use. Companies are investing in research and development to enhance product efficacy, quality, and appeal, which is helping to establish hemp as a staple in the wellness, personal care, and lifestyle markets.

Integration of Hemp in Green Construction and Manufacturing
Another growing trend is the integration of hemp into eco-friendly construction materials and industrial manufacturing. Hempcrete (a hemp-lime composite), hemp insulation, and bioplastics made from hemp fibers are gaining traction as sustainable building solutions. These materials offer energy efficiency, carbon sequestration, and durability, aligning with green building standards and sustainable development goals. 

As demand rises for environmentally responsible construction practices, hemp is emerging as a viable alternative to traditional, resource-intensive materials. This trend signals a shift toward circular economy principles, with hemp positioned as a key component in the future of sustainable infrastructure and manufacturing.

U.S. Industrial Hemp Market: Research Scope and Analysis

By Product Analysis

Seeds are projected to hold a revenue share of 78.2% in the U.S. industrial hemp market by the end of 2025 due to their exceptional nutritional profile and versatile applications. Hemp seeds contain protein-rich edestin and globulin, which promote immune health, cell regeneration, nervous system health, as well as essential minerals like zinc and magnesium, contributing significantly to their dominant position. 

In addition, hemp oil produced from seeds continues to gain ground by being widely used across food products, beverages, dietary supplements, cosmetics animal nutrition, which is appealing directly to health-conscious consumers interested in organic and plant-based solutions. This broad versatility ties in with rising consumer preference for natural and plant-based solutions.

Fiber industry growth will likely accelerate rapidly as demand increases for sustainable and eco-friendly materials across industries. Hemp fibers have gained widespread use for automotive interior components due to their strength, high hemicellulose content, absorbency, and lightweight characteristics; also making hemp biocomposites suitable as replacement car interior components, thanks to being lightweight yet durable. 

Furthermore, fashion industry designers seeking alternatives for cotton are turning increasingly toward hemp due to its environmental advantages and functional properties; combined with ongoing innovations and expanding industrial uses, this bodes well for the fiber's projected compound annual compound annual compound growth over the coming years.

By Source Analysis

Conventional sources are projected to hold the largest revenue share of 58.2% in the U.S. industrial hemp market by the end of 2025 due to their cost-efficiency, scalability, and widespread acceptance across industrial applications. Conventional hemp farming typically features lower production costs compared to organic cultivation, making it more cost-effective for manufacturers in textiles, bioplastics, construction, and animal care industries. 

Established infrastructure and supply chains enable faster production and distribution. Furthermore, conventional hemp's widespread adoption by large industries such as automobile manufacturers and textile mills further solidifies its market leadership due to affordability and consistency over niche certifications.

Organic hemp is projected to experience high compound annual compound annual compound growth rates in the U.S. market due to increasing consumer interest for natural, chemical-free products in various sectors like food, personal care and wellness among them - driven by consumer health awareness as they seek cleaner options that have greater sustainability, regulatory support for organic farming as well as increasing popularity of products labeled with such labels also pushing growth forward. Although organic hemp holds only a minority share currently among industrial hemp markets, its premium pricing niche appeal and expanding applications are driving its swift ascent in industrial hemp markets globally.

By Application Analysis

The food & beverage segment is expected to dominate the U.S. industrial hemp market with the highest revenue share of 35.3% in 2025 due to hemp’s exceptional nutritional profile. Hemp seeds and oil are rich in essential fatty acids, proteins, fiber, and vital minerals, making them ideal for health-conscious consumers. These ingredients are increasingly used in a wide range of food products like plant-based milk, protein bars, cereals, and cooking oils. As demand for natural, sustainable, and nutrient-rich foods continues to grow, hemp-based consumables are gaining widespread acceptance, thereby fueling market expansion in this segment.

the US Industrial Hemp Market application share analysis

The textiles segment is projected to be the second-largest and fastest-growing sector in the U.S. industrial hemp market. Hemp fabrics offer superior characteristics such as durability, breathability, and natural resistance to UV rays, mold, and mildew. These properties make hemp ideal for a wide range of textile applications, including clothing, bags, ropes, carpets, and geotextiles. 

Additionally, the growing demand for eco-friendly and sustainable alternatives to synthetic fibers is driving interest in hemp-based textiles. With rising environmental concerns and a shift toward green fashion and industrial applications, the textile segment is poised for robust growth during the forecast period.

The US Industrial Hemp Market Report is segmented on the basis of the following:

By Product

  • Seeds
  • Fiber
  • Shives

By Source

  • Conventional
  • Organic

By Application

  • Food & Beverages
  • Textiles
  • Automotive
  • Furniture
  • Animal Care
  • Pharmaceuticals
  • Other

Competitive Landscape

The U.S. industrial hemp market exhibits a dynamic and highly competitive landscape, driven by both established corporations and emerging innovators. Prominent companies such as Curaleaf Holdings, Inc., Green Thumb Industries, Canopy Growth Corporation, GenCanna, IND HEMP, Hemp Inc., Marijuana Company of America Inc., American Hemp LLC, Green Field Paper Company, Hemp Horizon, and Rawganic are leading the charge. These firms leverage strategies such as product diversification, vertical integration, and strategic partnerships to solidify their market presence.

Participants in the industry operate across multiple segments, including CBD-based wellness products, hemp-derived textiles, bio-construction materials, and hemp-based food supplements. This multi-segment approach enables them to cater to a broad spectrum of consumer and industrial needs, enhancing their competitive edge. Innovation remains at the forefront, with significant investments being funneled into research and development to improve extraction methods, elevate product quality, and meet changing regulatory requirements.

Sustainability, branding, and traceability have emerged as key differentiators, especially in the premium and organic product categories, where consumers are more conscious about ethical sourcing and environmental impact. Companies are increasingly focusing on transparent supply chains and eco-friendly practices to align with shifting consumer preferences.

Moreover, the expansion of distribution networks through e-commerce platforms and strategic retail collaborations is becoming a standard growth tactic, enabling greater accessibility and consumer engagement. As regulatory frameworks continue to evolve and industry infrastructure advances, the market is poised for intensified competition. This maturation is expected to spur further innovation, specialization, and consolidation, reshaping the market dynamics.

Some of the prominent players in the U.S. Industrial Hemp Market are:
  • Curaleaf Holdings Inc
  • Green Thumb Industries
  • GenCanna
  • IND HEMP
  • Colorado Hemp Works, Inc.
  • American Hemp LLC
  • East Mesa Inc.
  • Hemp, Inc.
  • Blue Sky Hemp Ventures Ltd.
  • Victory Hemp Foods
  • Front Range Biosciences
  • Kazmira LLC
  • Elemental Processing
  • Botanacor Laboratories
  • High Grade Hemp Seed
  • PureHemp Technology
  • Zilis LLC
  • US Hemp Building Association
  • Ecofibre Limited
  • Other Key Players

Recent Developments

  • In April 2025, IND HEMP, a top U.S. producer and processor of industrial hemp, teamed up with the National Hemp Association (NHA) to unveil an innovative, nutrition-focused approach to fighting malaria using hemp seed oil. Building on years of scientific research, IND HEMP highlights the significant potential of hemp seed oil to help lessen the global impact of malaria. With NHA’s strong connections across Africa and its ability to bring together a wide range of stakeholders, this initiative aims to deliver effective hemp-based solutions to communities where malaria is most prevalent.
  • In February 2025, the U.S. Hemp Roundtable is proud to announce its newly appointed officer team for 2025, featuring a group of distinguished leaders committed to driving progress in the hemp industry. These individuals bring a diverse range of expertise, insight, and dedication to guiding the future of hemp in the U.S.
  • In April 2023, Panda Biotech formed a strategic partnership with Ute Growth Fund aimed at establishing industrial hemp processing facilities, expanding its business operations, and advancing the use of sustainable textile fibers.
  • In March 2023, Toyoshima & Co., Ltd. invested in FyberX to jointly develop regenerative hemp fiber, with goals of supporting farmers, revitalizing rural areas, improving soil health, and offering sustainable alternatives across various industries, particularly textiles.

Report Details

Report Characteristics
Market Size (2025) USD 2,143.6 Mn
Forecast Value (2034) USD 12,713.3 Mn
CAGR (2025–2034) 21.9%
Historical Data 2019 – 2024
Base Year 2024
Estimate Year 2025
Report Coverage Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors, etc.
Segments Covered By Product (Seeds, Fiber, and Shives), By Source (Conventional, and Organic), By Application (Food & Beverages, Textiles, Automotive, Furniture, Animal Care, Pharmaceuticals, and Other)
Regional Coverage The US 
Prominent Players Curaleaf Holdings Inc., Green Thumb Industries, GenCanna, IND HEMP, Colorado Hemp Works, Inc., American Hemp LLC., East Mesa Inc., Hemp Inc., Blue Sky Hemp Ventures Ltd., Victory Hemp Foods, Front Range Biosciences, Kazmira LLC., Elemental Processing, Botanacor Laboratories, High Grade Hemp Seed, PureHemp Technology, Zilis LLC., US Hemp Building Association, Ecofibre Limited, and Other Key Players
Purchase Options We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days, and 5 analysts working days respectively.

Contents

    1.Introduction
      1.1.Objectives of the Study
      1.2.Market Scope
      1.3.Market Definition and Scope
    2.U.S. Industrial Hemp Market Overview
      2.1.U.S. Industrial Hemp Market Overview by Type
      2.2.U.S. Industrial Hemp Market Overview by Application
    3.U.S. Industrial Hemp Market Dynamics, Opportunity, Regulations, and Trends Analysis
      3.1.Market Dynamics
        3.1.1.U.S. Industrial Hemp Market Drivers
        3.1.2.U.S. Industrial Hemp Market Opportunities
        3.1.3.U.S. Industrial Hemp Market Restraints
        3.1.4.U.S. Industrial Hemp Market Challenges
      3.2.Emerging Trend/Technology
      3.3.PESTLE Analysis
      3.4.PORTER'S Five Forces Analysis
      3.5.Technology Roadmap
      3.6.Opportunity Map Analysis
      3.7.Case Studies
      3.8.Opportunity Orbits
      3.9.Pricing Analysis
      3.10.Ecosystem Analysis
      3.11.Supply/Value Chain Analysis
      3.12.Covid-19 & Recession Impact Analysis
      3.13.Product/Brand Comparison
    4.U.S. Industrial Hemp Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Product, 2019-2034
      4.1.U.S. Industrial Hemp Market Analysis by By Product: Introduction
      4.2.Market Size and Forecast by Region
      4.3.Seeds
      4.4.Fiber
      4.5.Shives
    5.U.S. Industrial Hemp Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Source, 2019-2034
      5.1.U.S. Industrial Hemp Market Analysis by By Source: Introduction
      5.2.Market Size and Forecast by Region
      5.3.Conventional
      5.4.Organic
    6.U.S. Industrial Hemp Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Application, 2019-2034
      6.1.U.S. Industrial Hemp Market Analysis by By Application: Introduction
      6.2.Market Size and Forecast by Region
      6.3.Food & Beverages
      6.4.Textiles
      6.5.Automotive
      6.6.Furniture
      6.7.Animal Care
      6.8.Pharmaceuticals
      6.9.Other
    10.U.S. Industrial Hemp Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by Region, 2019-2034
      10.1.The US 
        10.1.1.The US  U.S. Industrial Hemp Market: Regional Analysis, 2019-2034
    11.U.S. Industrial Hemp Market Company Evaluation Matrix, Competitive Landscape, Market Share Analysis, and Company Profiles
      11.1.Market Share Analysis
      11.2.Company Profiles
        11.3.1.Company Overview
        11.3.2.Financial Highlights
        11.3.3.Product Portfolio
        11.3.4.SWOT Analysis
        11.3.5.Key Strategies and Developments
      11.4.Curaleaf Holdings Inc
        11.4.1.Company Overview
        11.4.2.Financial Highlights
        11.4.3.Product Portfolio
        11.4.4.SWOT Analysis
        11.4.5.Key Strategies and Developments
      11.5.Green Thumb Industries
        11.5.1.Company Overview
        11.5.2.Financial Highlights
        11.5.3.Product Portfolio
        11.5.4.SWOT Analysis
        11.5.5.Key Strategies and Developments
      11.6.GenCanna
        11.6.1.Company Overview
        11.6.2.Financial Highlights
        11.6.3.Product Portfolio
        11.6.4.SWOT Analysis
        11.6.5.Key Strategies and Developments
      11.7.IND HEMP
        11.7.1.Company Overview
        11.7.2.Financial Highlights
        11.7.3.Product Portfolio
        11.7.4.SWOT Analysis
        11.7.5.Key Strategies and Developments
      11.8.Colorado Hemp Works, Inc.
        11.8.1.Company Overview
        11.8.2.Financial Highlights
        11.8.3.Product Portfolio
        11.8.4.SWOT Analysis
        11.8.5.Key Strategies and Developments
      11.9.American Hemp LLC
        11.9.1.Company Overview
        11.9.2.Financial Highlights
        11.9.3.Product Portfolio
        11.9.4.SWOT Analysis
        11.9.5.Key Strategies and Developments
      11.10.East Mesa Inc.
        11.10.1.Company Overview
        11.10.2.Financial Highlights
        11.10.3.Product Portfolio
        11.10.4.SWOT Analysis
        11.10.5.Key Strategies and Developments
      11.11.Hemp, Inc.
        11.11.1.Company Overview
        11.11.2.Financial Highlights
        11.11.3.Product Portfolio
        11.11.4.SWOT Analysis
        11.11.5.Key Strategies and Developments
      11.12.Blue Sky Hemp Ventures Ltd.
        11.12.1.Company Overview
        11.12.2.Financial Highlights
        11.12.3.Product Portfolio
        11.12.4.SWOT Analysis
        11.12.5.Key Strategies and Developments
      11.13.Victory Hemp Foods
        11.13.1.Company Overview
        11.13.2.Financial Highlights
        11.13.3.Product Portfolio
        11.13.4.SWOT Analysis
        11.13.5.Key Strategies and Developments
      11.14.Front Range Biosciences
        11.14.1.Company Overview
        11.14.2.Financial Highlights
        11.14.3.Product Portfolio
        11.14.4.SWOT Analysis
        11.14.5.Key Strategies and Developments
    12.Assumptions and Acronyms
    13.Research Methodology
    14.Contact
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