PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1744733
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1744733
Global Hemp Fiber Market to Reach US$20.2 Billion by 2030
The global market for Hemp Fiber estimated at US$7.2 Billion in the year 2024, is expected to reach US$20.2 Billion by 2030, growing at a CAGR of 18.7% over the analysis period 2024-2030. Conventional Hemp Fiber, one of the segments analyzed in the report, is expected to record a 16.6% CAGR and reach US$10.9 Billion by the end of the analysis period. Growth in the Organic Hemp Fiber segment is estimated at 22.0% CAGR over the analysis period.
The U.S. Market is Estimated at US$2.0 Billion While China is Forecast to Grow at 25.0% CAGR
The Hemp Fiber market in the U.S. is estimated at US$2.0 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$4.6 Billion by the year 2030 trailing a CAGR of 25.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 15.1% and 16.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 15.6% CAGR.
Global Hemp Fiber Market - Key Trends & Drivers Summarized
Why Is Hemp Fiber Regaining Global Relevance as a Sustainable Material?
Hemp fiber, derived from the stalk of the Cannabis sativa plant, is experiencing a global resurgence due to its environmental advantages and versatile application potential. Unlike many traditional fibers, hemp grows quickly, requires minimal pesticides, improves soil health, and captures significant carbon during its cultivation. These agronomic benefits, combined with rising interest in renewable and biodegradable materials, are repositioning hemp fiber as a sustainable alternative to synthetic fibers and resource-intensive crops like cotton.
With increasing scrutiny on environmental impact in textiles, packaging, automotive, and construction industries, hemp fiber is emerging as a viable solution. Its high tensile strength, anti-microbial properties, UV resistance, and breathability make it ideal for producing clothing, ropes, insulation, geotextiles, and composite panels. As governments and companies strive to decarbonize supply chains and reduce plastic use, hemp fiber offers both performance and sustainability credentials across multiple sectors.
How Are Processing Technologies and Policy Support Driving Market Expansion?
Technological advancements in hemp decortication, retting, and fiber refining are improving the quality, yield, and consistency of industrial hemp fiber. Modern mechanical decorticators allow efficient separation of bast and hurd fibers, supporting large-scale processing. Enzyme-based treatments and advanced blending techniques are enabling softer, more uniform fibers suited for high-end textile and nonwoven applications. Innovation in bio-composites and fiber-plastic blends is expanding hemp’s role in automotive parts, packaging films, and building materials.
Policy changes are also catalyzing market development. Many countries have legalized industrial hemp cultivation and are promoting its use through agricultural subsidies, R&D support, and incentives for sustainable manufacturing. Consumer demand for eco-labeled and organically sourced products is pushing brands in fashion, personal care, and food packaging to integrate hemp-based inputs. These regulatory and consumer-driven shifts are turning hemp fiber from a niche material into a strategic raw input across industries.
Which Applications and Regions Are Leading the Hemp Fiber Revolution?
The textile sector remains a key application area, with hemp fabrics used in apparel, home furnishings, and technical textiles. Nonwoven hemp is gaining momentum in insulation, automotive panels, and biodegradable composites. Construction is another fast-growing segment, where hempcrete and hemp-based insulation materials offer thermal efficiency, fire resistance, and carbon neutrality. Paper and pulp industries are revisiting hemp as an alternative to wood pulp for low-footprint printing and packaging applications.
Europe currently leads the global market due to progressive agricultural policies, a mature natural fiber ecosystem, and strong demand from sustainable brands. France, the Netherlands, and Germany are major producers and innovators in hemp processing. North America is expanding rapidly, supported by the U.S. Farm Bill legalization of hemp and investment from the automotive and fashion industries. Asia-Pacific is also a significant player, with China as the world’s largest hemp fiber producer and exporter. Latin America and Africa are beginning to adopt hemp as part of climate-smart agriculture and rural development strategies.
The Growth in the Hemp Fiber Market Is Driven by Several Factors
The growth in the hemp fiber market is driven by increasing global demand for sustainable raw materials, favorable regulatory reforms, and broad industrial interest in decarbonizing supply chains. Environmental concerns around synthetic fibers, cotton’s water intensity, and deforestation in paper and construction supply chains are accelerating the shift toward hemp-based alternatives. Advances in processing technology are improving fiber quality, making hemp more competitive in both performance and cost.
Policy incentives for green materials, consumer awareness of eco-friendly products, and supply chain diversification goals are aligning to drive hemp fiber adoption across textiles, automotive, packaging, and construction. The material’s low ecological footprint and wide application versatility make it uniquely positioned as both a traditional and next-generation fiber. As industries increasingly integrate circular and bio-based strategies, hemp fiber is emerging as a cornerstone material in the global sustainability transition.
SCOPE OF STUDY:
The report analyzes the Hemp Fiber market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Source (Conventional, Organic, Other Sources); Product Type (Fibers, Shivs, Seeds, Stalks, Other Product Types); Application (Textiles, Pulp & Paper, Composite Materials, Insulation, Animal Bedding, Other Applications); End-Use (Automotive, Construction, Animal Care, Textiles, Furniture, Food & Beverages, Other End-Uses)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Select Competitors (Total 43 Featured) -
TARIFF IMPACT FACTOR
Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.
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APRIL 2025: NEGOTIATION PHASE
Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.
JULY 2025 FINAL TARIFF RESET
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Reciprocal and Bilateral Trade & Tariff Impact Analyses:
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Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.
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