Industrial Hemp Market to Reach USD 42.21 Billion by 2032 Driven by Functional Beverages, CBD Wellness, and E-Commerce

The global industrial hemp market is on course for rapid growth as consumers embrace plant-based wellness products and sustainable materials. Kings Research reports that the market was valued at USD 11.13 billion in 2024 and USD 12.91 billion in 2025, and is projected to reach USD 42.21 billion by 2032, expanding at a robust compound annual growth rate (CAGR) of 18.44% during the 2025–2032 forecast period.

The market covers the cultivation and processing of hemp for commercial uses, including food and beverages, textiles, paper, biofuels, personal care, nutrition, and construction materials. Hemp's versatility and sustainability make it an attractive raw material for eco-friendly alternatives, and the crop is supporting innovation across a growing list of industries.

Market Overview

Demand for plant-based functional beverages and the expansion of e-commerce channels are two of the strongest forces behind the surge. Health-conscious consumers are turning to nutrient-rich hemp drinks, while online platforms are improving product accessibility and enabling efficient distribution to diverse consumer groups.

Rising interest in hemp-derived cannabidiol (CBD) is another major contributor. Consumers increasingly look to CBD for potential benefits such as stress relief, pain management, and better sleep, and they buy it as oils, edibles, topicals, and supplements. As awareness and acceptance widen, manufacturers are expanding their offerings and distribution channels, positioning CBD as a core segment. In January 2025, DoorDash broadened its service to include on-demand delivery of hemp-derived THC and CBD products in select states, with secure age verification and partnerships with retailers such as DashMart and Total Wine & More.

Key Highlights from the Report

Europe held a 36.44% market share in 2024, valued at USD 4.06 billion. The hemp oil segment generated USD 4.24 billion in 2024, and the conventional source segment is expected to reach USD 22.98 billion by 2032. The pharmaceuticals and healthcare supplements end-use segment is forecast to see the fastest growth, at a CAGR of 20.76%. Asia Pacific is anticipated to grow at about 19 percent annually and reach roughly USD 9.11 billion by 2032.

Market Driver: Plant-Based and Functional Drinks

Consumers are seeking natural, organic beverages that deliver added benefits such as improved digestion, immunity, and energy. Plant-based ingredients also offer a more sustainable alternative to traditional drinks while meeting diverse dietary preferences, which is encouraging innovation across functional beverage formulations.

Established cannabis and consumer brands are responding. In September 2024, Tilray Brands introduced a range of hemp-derived Delta-9 THC beverages in the United States, including mocktails, seltzers, and sparkling drinks sold under its 420 Fizz, Herb & Bloom, Fizzy Jane's, and Happy Flower brands, each infused with 5 mg of hemp-derived Delta-9 THC.

Market Challenge: Limited Awareness

Limited awareness among farmers and consumers is a significant hurdle. Many farmers are unfamiliar with hemp's economic potential, cultivation methods, and sustainability benefits, while many consumers still confuse it with psychoactive cannabis, which restrains adoption.

Companies are investing in educational campaigns, working with agricultural authorities, and running farmer training programs. Social media and community outreach initiatives are also being used to inform consumers about hemp-based products, with the aim of building trust and widening usage over time.

Market Trend: Expansion of E-Commerce Channels

Direct-to-consumer purchasing has accelerated the growth of online platforms dedicated to hemp goods. Partnerships with third-party brands and delivery services broaden reach, and digital marketplaces are becoming critical channels for compliant hemp products.

In June 2024, Curaleaf Holdings launched a new line of hemp-derived THC products under its Select and Zero Proof brands, available through its new e-commerce platform, TheHempCompany.com, which offers Farm Bill compliant products directly to consumers and supports retail and DoorDash distribution.

Segmentation Insights

By product type, the market includes hemp seeds, hemp oil, hemp fiber, and other products such as hurds and non-CBD extracts. Hemp oil led in 2024 with USD 4.24 billion, reflecting strong demand for plant-based wellness products across personal care, food, and nutraceutical uses. By source, the conventional segment held 58.44% of the market in 2024 because of cost-effective production, higher yield potential, and broad availability for large-scale commercial applications, though organic hemp continues to grow.

By end-use industry, food and beverages are projected to reach USD 10.87 billion by 2032, as consumers favor nutrient-rich, plant-based ingredients and manufacturers build hemp into functional foods and drinks. Textiles, personal care and cosmetics, construction materials, and pharmaceuticals and healthcare supplements are the other major categories.

Regional Analysis

Europe leads thanks to advanced fiber processing technologies and strong demand for hemp-based wellness and dietary products. Established agricultural infrastructure supports large-scale cultivation, while ongoing research improves product quality and diversity. The region's emphasis on extraction methods and product development reinforces its role as a global hub for production.

Asia Pacific is the fastest-growing region, benefiting from government support for sustainable agriculture and investments in hemp fiber and textile production. Awareness of hemp's environmental advantages, such as low water use and carbon sequestration, is also lifting demand. In March 2023, India's Technology Development Board supported Sahi Fab Private Limited in developing and commercializing fiber from industrial hemp and agricultural waste under a waste-to-wealth mission, helping increase farmers' incomes.

Regulatory Landscape

In the United States, hemp is regulated mainly by the Department of Agriculture under the 2018 Farm Bill, with Food and Drug Administration oversight of hemp-derived foods, drugs, and cosmetics. India permits cultivation for industrial and horticultural use under the Narcotic Drugs and Psychotropic Substances Act, provided THC content stays below 0.3% and specific conditions are met. In Europe, hemp falls under the Common Agricultural Policy, with each member state enforcing its own rules and the European Food Safety Authority overseeing food and supplement safety.

Competitive Landscape

Companies are using mergers, acquisitions, partnerships, and new launches to strengthen their positions, and many are building direct-to-consumer platforms and enhancing brand portfolios. Profiled players include Curaleaf, Inc., Green Thumb Industries, Canopy Growth Corporation, Aurora Cannabis Inc., Ecofibre Ltd, The Cronos Group, HempFlax Group B.V., Dun Agro Hemp Group, Fresh Hemp Foods Ltd., GenCanna, Canah International, MH medical hemp GmbH, IND HEMP, LLC., HemPoland, and Colorado Hemp Works, Inc.

Recent moves illustrate the strategies at work. In October 2024, Canopy USA, a Canopy Growth subsidiary, acquired Wana to strengthen its brand portfolio in the United States. In May 2025, Curaleaf International partnered with Canngea to enter the Australian medical cannabis market. In December 2024, Hempalta acquired the remaining 49.9% of Hemp Carbon Standard, gaining full access to its methodologies in the hemp-based carbon credit market, and in May 2024 Cronos expanded its PEACE NATURALS brand into the United Kingdom through a partnership with GROW Pharma.

Outlook

With demand rising across food, wellness, textiles, and construction, and with distribution broadening through digital channels, industrial hemp is moving steadily from a niche crop to a mainstream commodity. Companies that educate the market, build compliant and diversified product lines, and invest in processing capacity are well placed to benefit from growth that the research expects to more than triple the market's size by 2032.