PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1876135
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1876135
The global hemp fiber market continues to expand rapidly driven by rising demand for sustainable, high-performance natural fibers across textiles, construction, automotive, and bioplastics. According to the latest assessment, the global hemp fiber market size was valued at USD 3.03 billion in 2024, supported by the increasing shift toward eco-friendly materials. The market is forecast to rise to USD 3.66 billion in 2025, propelled by supportive regulations and wider industrial adoption. By 2032, the market is projected to reach USD 16.43 billion, indicating strong long-term growth as global industries decarbonize and transition to bio-based inputs.
Regulatory Support Driving Market Expansion
The legalization and deregulation of industrial hemp cultivation have played a significant role in boosting market growth. In 2024, many regions-including Australia, North America, Europe, and Asia Pacific-expanded legal frameworks that support the cultivation and commercialization of hemp fiber. This policy shift enhanced global production and strengthened supply chains. For example, South Africa's 2021 declaration of hemp as an agricultural crop laid the foundation for structured cultivation, import-export channels, and research-driven improvements. These legal advancements strongly contributed to the USD 3.03 billion global market size in 2024 and will continue supporting growth into 2025 at USD 3.66 billion.
High Production Costs Remain a Market Challenge
Despite its growing appeal, hemp fiber processing remains capital-intensive. The production of hemp straw requires advanced equipment for retting, decortication, carding, and spinning-steps that increase operational costs. According to the European Industrial Hemp Association (EIHA), hemp straw production costs range between USD 931-1,397 per ton, significantly higher than flax (USD 466-698 per ton) or jute (USD 233-466 per ton). These elevated costs limit the ability of smaller agricultural firms to enter the market, creating production gaps and slowing down industrial scalability.
Start-up Investments Creating New Opportunities
In 2024, investment in hemp fiber start-ups accelerated, creating new pathways for innovation, particularly in advanced materials and biocomposites. A notable example came in May 2024, when BASF SE, through its incubator Chemovator, invested in the Detroit-based start-up Heartland, aiming to advance sustainable hemp fiber reinforcement for industry use. Such investments are expected to strengthen innovation capacity and contribute significantly to the projected USD 16.43 billion market value by 2032.
Eco-Friendly Trends Fueling Demand for Hemp Fiber
Sustainability remains one of the strongest global trends supporting hemp fiber adoption. Hemp requires lower water inputs, minimal pesticides, and enhances soil health. According to EIHA, hemp can sequester 8-15 tons of CO2 per hectare, ranking it among the most efficient carbon-capturing crops. With fashion, automotive, and construction industries under pressure to shift away from cotton (high water use) and polyester (fossil-fuel based), hemp fiber offers a biodegradable, durable, and environmentally responsible alternative.
Segmental Insights: Bast Fiber Leads the Market
In 2024, bast fiber dominated the market, driven by its high cellulose concentration, superior strength, and suitability for textiles, composites, and high-performance materials. Bast fibers are increasingly used in automotive composites, aerospace components, insulation materials, packaging, and eco-friendly construction. The hurd/shives segment is also expanding rapidly, especially for animal bedding, hempcrete, molded packaging, and bioplastics.
End-use Analysis: Textiles & Apparel Remain the Largest Segment
The textiles and apparel segment accounted for the largest share of the market in 2024, supported by increasing consumer preference for natural fibers. Asia Pacific, particularly China and India, leads global hemp textile production. India's Ministry of Textiles invested USD 14.3 million in 2023 to promote hemp-based textiles, strengthening the region's leadership position.
Regional Insights: Asia Pacific Dominated with USD 1.20 Billion in 2024
Asia Pacific led the global market with USD 1.20 billion in 2024, representing 39.6% of global share. China supplies nearly 50% of the world's hemp fibers, with imports increasing to 837 metric tons in 2020, up 51.36% from the previous year. Strong governmental support and advanced agricultural ecosystems position Asia Pacific as the leading region through 2032.
Segmentation By Type
By End-Use
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