Hemp Fiber Market Set to Surpass Valuation of US$ 30.13 Billion By 2033 | Astute Analytica

A powerful convergence of industrial demand for sustainable composites, key processing technology breakthroughs, and significant new investment is set to propel the hemp fiber market from a niche segment into a mainstream industrial powerhouse.

Chicago, July 15, 2025 (GLOBE NEWSWIRE) -- The global hemp fiber market was valued at US$ 5.78 billion in 2024 and is expected to reach US$ 30.13 billion by 2033, growing at a CAGR of 20.12% during the forecast period 2025–2033.

The global hemp fiber landscape demonstrates remarkable expansion, with industrial hemp cultivation now spanning more than 60 countries as of 2024. China maintains its position as the undisputed leader in hemp fiber production, generating an impressive output exceeding 73,000 metric tons in 2024. The nation's commitment to hemp cultivation is evident through its allocation of 27,000 hectares specifically for textile hemp production. Looking forward, Chinese hemp production projections indicate substantial growth, with estimates suggesting output will surge to nearly 117,000 metric tons by 2028, representing a significant increase from approximately 100,000 metric tons recorded in 2023.

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The concentration of production in the global hemp fiber market across leading nations is notable, with China, the Netherlands, and Canada collectively producing over 80,000 metric tons of refined hemp fiber in 2024. According to Textile Exchange reporting, the global hemp market achieved approximately 200,000 tons of fiber production in 2021, illustrating the industry's substantial scale. Emerging markets are also making significant contributions, particularly in India where the regions of Uttarakhand and Himachal Pradesh cultivated hemp across over 12,000 acres in 2024, yielding 9,800 metric tons of fiber. Furthermore, Asian technological advancement is evident through Japan and South Korea's joint investment of $15 million into research and development of next-generation hemp textiles and bioplastics, signaling future innovation potential.

Key Findings in Hemp Fiber Market

United States Hemp Fiber Industry: Market Volatility Reveals Dramatic Price Corrections and Production Shifts

The United States hemp fiber market experienced significant transformations in 2024, characterized by increased production volumes alongside dramatic price corrections. The total value of all industrial hemp produced in the U.S., including crops grown in open fields and under protection, reached $445 million in 2024. Specifically focusing on fiber hemp grown in open fields, U.S. production reached an estimated 60.4 million pounds, with farmers successfully selling a record 59 million pounds during the year. The cultivation footprint expanded considerably, with fiber hemp harvested across 18,855 acres in 2024, representing a substantial increase from 2023's 12,106 acres when production stood at 49.1 million pounds.

Despite increased production volumes, the hemp fiber market experienced severe pricing pressure. The most striking development was the precipitous decline in average sale prices for U.S. fiber hemp, plummeting to just $0.19 per pound in 2024. This represents a dramatic decrease from $1.50 per pound in 2021 and $1.38 per pound in 2022, indicating significant market oversupply or shifting demand dynamics. The total value of hemp grown specifically for fiber reached $11.2 million in 2024. Yield performance showed some volatility, with average yields for fiber hemp grown outdoors estimated at 3,205 pounds per acre in 2024, down from 4,053 pounds per acre in 2023. Vermont research trials highlighted the potential of specific varieties like 'Futura 83', which previously yielded over 3,300 pounds of grain per acre.

European Hemp Fiber Industry: France Leads Continental Production While Netherlands Shows Remarkable Growth

Europe's hemp fiber market demonstrates robust growth trajectories, with France maintaining its position as the continental powerhouse. The European Union witnessed substantial expansion in hemp cultivation, with total area growing from 22,010 hectares in 2016 to 32,250 hectares by 2022. This agricultural expansion translated into significant production increases, with total EU hemp production rising from 97,130 tons in 2015 to 177,430 tons in 2022. France's dominance in the European market is unequivocal, producing over 121,720 tons in 2022, which constitutes an impressive 78% of the EU's total output. The nation's commitment to hemp cultivation extends across approximately 20,000 hectares of land dedicated to all types of hemp cultivation, with at least 2,500 hectares specifically allocated to textile-grade hemp production in 2024.

The Netherlands emerges as a rapidly growing player in the European hemp fiber market, demonstrating remarkable expansion rates. Dutch hemp cultivation area increased dramatically from 1,976 hectares in 2023 to an estimated 3,440 hectares in 2024, representing nearly 74% growth year-over-year. This expansion in cultivation area corresponded with substantial harvest increases, with the Netherlands' hemp harvest predicted to reach 25,120 tons in 2024, rising significantly from 13,640 tons in 2023. This 84% increase in harvest volume suggests improved yields and growing farmer confidence in hemp as a viable agricultural commodity, positioning the Netherlands as an increasingly important contributor to European hemp fiber supply.

Hemp Fiber Consumption by Sector: Textiles Lead While Construction and Automotive Applications Accelerate

Industrial hemp fiber consumption patterns reveal diverse sectoral demand, with the textile industry serving as the primary driver in the hemp fiber market. The global textile industry's appetite for hemp fiber reached 55,000 metric tons in 2024, with broader textile segment consumption exceeding 60,000 tons. This demand translated into over 34,000 metric tons of hemp fabric entering the global supply chain during 2024, demonstrating the material's growing acceptance in fashion and textile manufacturing. The construction sector emerged as another significant consumer, utilizing over 20,000 tons of hemp fiber in 2023 for applications including hempcrete and insulation materials. European construction particularly embraced hemp-based products, consuming over 22,000 tons in 2023.

The versatility of hemp fiber market extends into specialized applications, with 43,000 metric tons of hemp hurds deployed in housing construction projects across France, Germany, and Canada in 2023. The automotive industry consumed approximately 7,100 tons of hemp fiber in 2024 for various components, highlighting the material's appeal for lightweight, sustainable automotive parts. Bio-composite applications showed strong growth, with over 12,000 metric tons utilized in 2024, while global consumption of hemp bio-composites exceeded 13,000 metric tons. Traditional applications persist, with paper manufacturing processing over 15,500 tons of hemp pulp in 2023. Hemp tow, consisting of shorter fibers from processing, represented a substantial volume of over 26,500 metric tons globally in 2024, indicating efficient utilization of processing byproducts.

Import Export and Trade Value: Complex International Networks Reveal Growing Cross Border Commerce

International trade patterns in hemp fiber market reveal an increasingly interconnected global market with complex supply chains crossing multiple continents. The United States emerged as both an importer and exporter of hemp fibers in 2024, with exports valued at $2.46 million. Primary export destinations included Switzerland receiving $1.7 million worth of U.S. hemp fibers, followed by the United Kingdom at $225,000, Brazil at $211,000, and Canada at $58,600. Simultaneously, the U.S. imported $2.19 million of hemp fibers, primarily sourcing from Canada at $838,000, Germany at $555,000, the Netherlands at $402,000, and France at $300,000. This bidirectional trade flow suggests market specialization and quality differentiation driving international commerce.

European trade dynamics showed Spain emerging as a significant exporter in the hemp fiber market, with hemp fiber exports valued at €4.91 million in 2024. France dominated as Spain's primary export destination, receiving €4.21 million worth of Spanish hemp fiber, indicating strong intra-European trade relationships. China's position in global markets extended beyond production dominance, with hemp exports to nearly six countries valued at over USD 2.5 million in 2024. According to UN COMTRADE data from 2022, global exports of hemp fibers and yarn reached approximately $50 million, suggesting substantial growth potential. April 2025 projections indicate continued U.S. market activity with expected exports of $330,000 and imports of $162,000 for the month, demonstrating ongoing market vitality.

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Innovations and Future Developments: Automotive Giants Pioneer Sustainable Materials While Technology Advances Processing

The hemp fiber market stands at the cusp of technological transformation, with major automotive manufacturers leading sustainable innovation initiatives. Volkswagen 's commitment to environmental sustainability manifests through active development of a groundbreaking interior surface material composed of 100% bio-based industrial hemp. This innovative material targets potential implementation in vehicle projects starting from 2028, signaling a significant shift toward renewable automotive components. The initiative represents more than product development; it exemplifies how established industries can pivot toward sustainable alternatives while maintaining performance standards. Volkswagen 's timeline suggests careful development and testing phases, ensuring the hemp-based materials meet stringent automotive industry requirements for durability, safety, and consumer acceptance.

French innovation contributes significantly to automotive applications through Automotive Performance Materials' development of NAFILean, a polypropylene composite containing 20% hemp designed specifically for interior car components. This biocomposite material demonstrates the potential for hemp to partially replace petroleum-based plastics while maintaining necessary mechanical properties. The 20% hemp content represents a balanced approach, combining sustainability benefits with proven material performance. These automotive sector developments indicate broader industrial acceptance of hemp as a viable raw material for high-value applications. The focus on interior components suggests initial market entry strategies targeting less structurally critical applications, potentially paving the way for expanded use as confidence in hemp-based materials grows through real-world testing and consumer feedback.

Global Hemp Fiber Market Major Players:

• HempFlax
• Ecofibre Limited
• Plantaže
• BaFa Neu GmbH
• Dunagro
• EnviroTextiles
• Hemp Inc.
• Valchanov Hemp
• Hemp Horizon Pvt. Ltd.
• Other Prominent Players

Key Market Segmentation:

By Fiber Type

• Bast Fiber
• Hurd Fiber

By Application

• Textile
• Automotive
• Construction & Materials
• Pulp & Paper
• Others

By Sales Channel

• Offline
  • Direct Sales
  • Distributors
• Online Retail

By Region

• North America
• Europe
• Asia Pacific
• Middle East
• Africa
• South America
  

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Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/