Industrial Hemp Market Poised for Growth, Projected to Reach $25 Billion by 2032

LOS ANGELES-The industrial hemp market is projected to grow substantially, with a forecasted compound annual growth rate (CAGR) of 17.29% through 2032, reaching an estimated value of $25.33 billion. This growth is primarily driven by favorable shifts in regulatory policies that have supported hemp cultivation, a rising awareness of hemp’s environmental benefits, and its expanding applications across numerous industries. The U.S. Department of Agriculture reports that, as of 2023, 54,152 acres were dedicated to industrial hemp cultivation nationwide, with a market valuation of $712 million for hemp produced in open fields.

The sector’s growth is expected to be bolstered by the demand for hemp in diverse applications, including textiles, construction, food and beverage, personal care, and particularly pharmaceuticals. With an aging population in the United States—where over 15% of residents are over 65—the healthcare sector’s demand for hemp-derived products, such as cannabidiol (CBD) for therapeutic purposes, is anticipated to rise. This demand aligns with the U.S.’s substantial pharmaceutical industry, which contributes over 40% to global revenues and is adapting to consumer preference for natural and organic health solutions.

Hemp’s versatility is further amplified by advances in processing technology, allowing for the efficient extraction of fibers, seeds, and cannabinoids, making it increasingly popular in wellness, nutraceuticals, and even in eco-friendly building materials. Moreover, hemp’s sustainability benefits, such as reduced pesticide needs and carbon absorption, align with global goals to reduce environmental impact, making it an attractive option in industries focused on green practices.​