Hemp Fiber Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 378.56 Million
CAGR (2026-2031)	7.02%
Fastest Growing Segment	Pharmaceuticals
Largest Market	North America
Market Size (2031)	USD 568.75 Million

Market Overview

The Global Hemp Fiber Market will grow from USD 378.56 Million in 2025 to USD 568.75 Million by 2031 at a 7.02% CAGR. Hemp fiber comprises the high-tensile bast fibers harvested from the stalk of the Cannabis sativa plant, utilized extensively in textiles, construction materials, and automotive biocomposites. The market is fundamentally driven by the growing industrial imperative for sustainable, carbon-negative alternatives to synthetic polymers and cotton, alongside global regulatory reforms that have increasingly permitted commercial cultivation. This sector expansion is evident in recent agricultural metrics; according to the National Hemp Association, in 2024, United States hemp fiber production reached 60.4 million pounds, signaling a marked increase in industrial adoption.

However, a significant challenge impeding broader market expansion is the global shortage of specialized decortication and processing infrastructure required to convert raw stalks into consistent, textile-grade fiber. This deficit in the midstream value chain creates logistical bottlenecks and supply instability, which deters large-scale manufacturers from integrating hemp into mass-market production lines. Consequently, the capital-intensive nature of establishing these essential processing facilities remains a primary obstacle to stabilizing the supply chain and achieving economies of scale.

Key Market Drivers

The Expansion of Hemp-Based Biocomposites in Automotive Manufacturing is a primary force propelling the market, as manufacturers increasingly seek lightweight, carbon-neutral alternatives to traditional plastics and fiberglass. Automakers are integrating hemp fibers into interior panels, dashboards, and structural components to reduce vehicle weight, which in turn improves fuel efficiency and electric vehicle range. This trend is driven by the material's high strength-to-weight ratio and its ability to sequester carbon, aligning with the automotive sector's aggressive sustainability targets. A notable development in this space occurred when Kia presented its EV2 concept car; according to Noticias Ambientales, May 2025, the vehicle featured a sustainable interior cabin constructed from a blend of materials that specifically included hemp fibers, mycelium, and flax.

Concurrently, the market is being bolstered by the Rising Demand for Sustainable and Eco-Friendly Textiles, as the fashion and home furnishing industries aggressively pivot away from resource-intensive cotton and synthetic fibers. This shift is supporting a robust increase in agricultural output dedicated to fiber applications, ensuring a steady feedstock for textile processing. The scale of this agricultural expansion is evident in recent government data; according to the National Agricultural Statistics Service (USDA), April 2025, the harvested area for fiber hemp in the United States increased 56 percent to 18,855 acres in 2024. This surge in cultivation underpins the broader economic value of the crop, as the same USDA report noted that the total value of United States hemp production reached $445 million in 2024, reflecting the growing industrial viability of the sector.

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Key Market Challenges

The critical shortage of specialized decortication and processing infrastructure serves as a primary bottleneck impeding the Global Hemp Fiber Market. This deficit in the midstream value chain creates a severe logistical disconnect between agricultural production and industrial application. Because raw hemp stalks are high-volume and low-density, they require immediate, local processing to be economically viable; however, the scarcity of regional facilities forces growers to incur prohibitive transportation costs to reach distant processors. This inefficiency results in supply instability and inconsistent fiber quality, effectively deterring large-scale textile and automotive manufacturers from integrating hemp into their mass-production lines due to reliability concerns.

The capital-intensive nature of establishing these essential processing plants further exacerbates the issue, as the high initial investment prevents the rapid scaling necessary to meet potential demand. This infrastructure gap directly erodes the economic value of the sector, preventing increased agricultural output from translating into revenue. This discrepancy is evident in recent market performance where value failed to align with cultivation efforts. According to the National Hemp Association, in 2024, the value of hemp grown for fiber in the United States decreased to $11.2 million, even as harvest acreage expanded. This decline underscores how processing limitations stifle monetization and restrict the market from achieving the economies of scale required for global growth.

Key Market Trends

The Adoption of Cottonization Technologies for Mainstream Textile Blending is transforming the market by modifying coarse hemp fibers to mimic the physical properties of cotton. This mechanical and enzymatic processing enables hemp to be spun on standard machinery, allowing manufacturers to produce blended denim and apparel without costly retooling. Consequently, the sector is seeing a surge in specialized infrastructure designed to convert raw bast fiber into soft, textile-grade inputs. This increase in processing capacity is evident in recent operational milestones; according to Panda Biotech, April 2024, in the 'Panda Biotech Announces Commercial Operations Have Begun at Its Flagship Panda Hemp Gin' press release, the company inaugurated a facility capable of processing 10 metric tons of hemp per hour, directly addressing the industry need for high-quality cottonized fiber.

The Expansion of Hempcrete Applications in Carbon-Negative Construction is simultaneously driving market value as the building industry seeks materials with low embodied carbon. Hemp-lime composites and fiber insulation are increasingly utilized in residential and commercial projects for their thermal efficiency and moisture regulation capabilities. This shift toward sustainable architecture is attracting substantial capital to scale domestic manufacturing supply chains. According to Hempitecture, October 2024, in the 'Hempitecture Announces $8.4M Grant from US DOE' press release, the company secured $8.4 million in federal funding to establish a facility for manufacturing hemp-based building materials, validating the commercial viability of these carbon-sequestering construction solutions.

Segmental Insights

Based on recent market intelligence, the Pharmaceuticals segment is emerging as the fastest-growing category within the Global Hemp Fiber Market. This rapid expansion is primarily driven by the increasing integration of hemp fiber into medical textiles and wound dressings, which leverage the material's natural antimicrobial and hypoallergenic properties to improve infection control. Furthermore, advancements in processing hemp biomass into nanocellulose for use in specialized drug delivery systems are fueling demand. As regulatory frameworks globally evolve to support industrial hemp, manufacturers are prioritizing these high-value, biocompatible applications over conventional textile uses.

Regional Insights

North America currently dominates the Global Hemp Fiber Market, driven by favorable legislative changes and established industrial infrastructure. The passage of the 2018 Farm Bill in the United States legalized commercial hemp production, creating a stable environment for growers and manufacturers. Oversight by the United States Department of Agriculture ensures compliance and quality, further strengthening market confidence. Additionally, the increasing preference for sustainable materials in the automotive and textile industries supports regional growth. These factors collectively position North America as the primary hub for hemp fiber development and consumption.

Recent Developments

In July 2025, Hempitecture expanded its portfolio of sustainable building solutions by introducing several new hemp-based products designed to enhance energy efficiency in construction. The company launched FiberPad, a carpet underlayment, and Plant Panel, a rigid board insulation, both manufactured primarily from domestic industrial hemp fibers. These new offerings are part of the company's strategy to diversify beyond its flagship batt insulation and provide comprehensive, bio-based alternatives for the built environment. This product launch follows the company's successful operational scaling and significant investment in new machinery, positioning it to capture a larger share of the green building materials market with products that offer carbon-sequestering benefits.
In September 2024, Volkswagen announced a strategic partnership with the material technology startup Revoltech GmbH to develop a sustainable alternative to artificial leather for automotive interiors. The collaboration focuses on creating a 100% bio-based surface material derived from industrial hemp fibers, utilizing residues from the regional hemp industry. This innovative material, referred to as LOVR (leather-free, oil-free, vegan, and residue-based), is intended for use in future vehicle models starting as early as 2028. The project underscores the automotive industry's shift towards circular economy principles, leveraging the durability and aesthetic potential of hemp fiber to replace conventional, petroleum-based synthetic materials.
In April 2024, Panda Biotech officially commenced commercial operations at its flagship industrial hemp processing facility located in Wichita Falls, Texas. This landmark development represents a major advancement in the domestic supply chain for textile-grade hemp, as the facility is recognized as the largest of its kind in the Western Hemisphere. The plant is designed to process industrial hemp into high-quality fiber and hurd for various applications, including textiles and construction materials. By operating a zero-waste facility powered entirely by renewable energy, the company aims to meet the increasing global demand for sustainable natural fibers while supporting American agriculture through local farming partnerships.
In March 2024, the electric motorcycle division of Harley-Davidson, LiveWire, launched a new model that integrates sustainable materials into its design, marking a significant application of natural fibers in the automotive sector. The company unveiled the S2 Mulholland, a performance cruiser that utilizes hemp-based bio-composite materials for key components such as the front and rear fenders. This product launch highlights the growing adoption of hemp fiber as a lightweight, eco-friendly alternative to traditional plastics in vehicle manufacturing. The initiative aligns with the brand's broader sustainability goals by reducing reliance on fossil-fuel-derived plastics and showcasing the viability of hemp composites in high-performance consumer products.

Key Market Players

Hempco Food & Fiber Inc
CBD Biotechnology Co Ltd
Ecofibre Ltd
Hemp Inc
GenCanna Global, Inc.
HempFlax BV
Hemp Oil Canada Inc
HemPoland Sp. z o.o.
Dun Agro BV
Colorado Hemp Works, LLC

By Source	By Application	By Region
Organic Conventional	Food Beverages Personal Care Products Textiles Pharmaceuticals Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Hemp Fiber Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Hemp Fiber Market, By Source:

Organic
Conventional

Hemp Fiber Market, By Application:

Food
Beverages
Personal Care Products
Textiles
Pharmaceuticals
Others

Hemp Fiber Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Hemp Fiber Market.

Available Customizations:

Global Hemp Fiber Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Hemp Fiber Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Hemp Fiber Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Source (Organic, Conventional)

5.2.2. By Application (Food, Beverages, Personal Care Products, Textiles, Pharmaceuticals, Others)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Hemp Fiber Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Source

6.2.2. By Application

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Hemp Fiber Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Source

6.3.1.2.2. By Application

6.3.2. Canada Hemp Fiber Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Source

6.3.2.2.2. By Application

6.3.3. Mexico Hemp Fiber Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Source

6.3.3.2.2. By Application

7. Europe Hemp Fiber Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Source

7.2.2. By Application

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Hemp Fiber Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Source

7.3.1.2.2. By Application

7.3.2. France Hemp Fiber Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Source

7.3.2.2.2. By Application

7.3.3. United Kingdom Hemp Fiber Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Source

7.3.3.2.2. By Application

7.3.4. Italy Hemp Fiber Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Source

7.3.4.2.2. By Application

7.3.5. Spain Hemp Fiber Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Source

7.3.5.2.2. By Application

8. Asia Pacific Hemp Fiber Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Source

8.2.2. By Application

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Hemp Fiber Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Source

8.3.1.2.2. By Application

8.3.2. India Hemp Fiber Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Source

8.3.2.2.2. By Application

8.3.3. Japan Hemp Fiber Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Source

8.3.3.2.2. By Application

8.3.4. South Korea Hemp Fiber Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Source

8.3.4.2.2. By Application

8.3.5. Australia Hemp Fiber Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Source

8.3.5.2.2. By Application

9. Middle East & Africa Hemp Fiber Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Source

9.2.2. By Application

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Hemp Fiber Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Source

9.3.1.2.2. By Application

9.3.2. UAE Hemp Fiber Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Source

9.3.2.2.2. By Application

9.3.3. South Africa Hemp Fiber Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Source

9.3.3.2.2. By Application

10. South America Hemp Fiber Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Source

10.2.2. By Application

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Hemp Fiber Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Source

10.3.1.2.2. By Application

10.3.2. Colombia Hemp Fiber Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Source

10.3.2.2.2. By Application

10.3.3. Argentina Hemp Fiber Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Source

10.3.3.2.2. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Hemp Fiber Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Hempco Food & Fiber Inc

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. CBD Biotechnology Co Ltd

15.3. Ecofibre Ltd

15.4. Hemp Inc

15.5. GenCanna Global, Inc.

15.6. HempFlax BV

15.7. Hemp Oil Canada Inc

15.8. HemPoland Sp. z o.o.

15.9. Dun Agro BV

15.10. Colorado Hemp Works, LLC

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Hemp Fiber Market in 2025?

Which is the dominating region in the Global Hemp Fiber Market?

Which is the fastest growing segment in the Global Hemp Fiber Market?

What is the expected growth rate of the Global Hemp Fiber Market?

Hemp Fiber Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source (Organic, Conventional), By Application (Food, Beverages, Personal Care Products, Textiles, Pharmaceuticals, Others), By Region & Competition, 2021-2031F

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Hemp Fiber Market in 2025?

Which is the dominating region in the Global Hemp Fiber Market?

Which is the fastest growing segment in the Global Hemp Fiber Market?

What is the expected growth rate of the Global Hemp Fiber Market?