Hemp fiber, being a renewable resource, is used in the production of daily use products such as paper, textiles, fuel, and construction materials and the growing demand for eco-friendly products will significantly contribute to the growth of the hemp industrial market. Breathability, antibacterial, and sustainability are key properties involved in the production of hemp fiber products. Hemp actually produces four times more paper than wood.

The hemp fiber segment dominated the global industrial hemp market in 2023 on the basis of application with 23.56%, mainly due to the growing demand for hemp fabric. It is estimated that the global hemp fiber market will reach US$ 162 million by 2025.

The Asia-Pacific region is expected to dominate the industry over the next five years, with China, the main producer, leading in terms of share of the country. China alone is responsible for 50% of hemp production and has around 600 international patents. Government support for the industrial use of hemp, along with favorable environmental and agricultural conditions, has promoted to the country’s contribution to the industry. In 2022, according to a Grand View Research report, the industrial hemp market in the Asia-Pacific region was worth around $1.6 billion and is expected to grow at a CAGR of 18.5% to around $6.1 billion by 2030.

In Europe, the area dedicated for specifically hemp fiber production has risen from 20,540 hectares in 2015 to 33,020 hectares in 2022. The production of hemp fiber also rose in that same period: from 97,130 tons to 179,020 tons. France accounted for 60% of the total hemp fiber production in 2022, establishing itself as the largest producer in Europe, followed by Germany (17%) and the Netherlands (5%).

The European market will witness significant growth and demand will be heavily influenced by ongoing research on green building solutions in the UK, Spain and France. Other factors, such as the increase in the number of hemp growers since the start of industrial use, have prompted hemp fiber to be used in other industries. France accounts for 60% of the total hemp fiber production in Europe. The majority of French hemp fiber is used for papermaking (50%), followed by insulation (30%) while hemp textiles and plastics each account for 10%.

North America is expected to make the largest gains by 2026. Strong commercialization with mass production will affect the industrial growth of the region. In 2023, the U.S. industrial hemp market was valued at $291,050 (an 18% increased from 2022) according to data from the USDA National Hemp Report. New Frontier Data has estimated that the U.S. hemp fiber market would reach $77.7 million in 2025.

More than 27,000 acres of hemp were planted in the U.S. in 2023, with a little over 21,000 acres harvested. Hemp floral varieties accounted for about 35% of total harvested acreage while fiber, grain and seed accounted for 65%. Nearly 4,000 acres of hemp were harvested for grain, 12,106 acres for fiber and 1,344 acres for seed.

As seen in Europe, which has the longest experience in fiber hemp cultivation, it is likely that products that require the least processing and calibration will be the first to achieve market viability in North America. As the industry matures, increasingly profitable hemp fiber applications should become viable.

A survey of fiber processors by New Frontier Data showed that they expect the best five-year growth potential among segments including construction materials, automotive parts, bioplastics, and nonwoven textiles, respectively.

In recent years, research has shown a positive aspect of hemp fabrics versus cotton. Economical, fewer toxin, and high crop culture are the main reasons for replacing cotton with hemp in the coming years. Change in consumer choices along with increasing awareness about product quality and properties has altered the textile industry. In addition, the selection of the best substitutes took into account the need to reduce dependence on a single source fabric.

Strong demand from the construction industry due to product compliance with the green building concept has influenced the penetration of hemp fiber into the construction industry. Favorable factors such as light-weightiness, breathability, improved building temperature and humidity, and better insulation are key factors to affect demand in the industry.

Hemp-based automotive components offer auto manufacturers a means to both reduce the weight of their vehicles and reduce their carbon footprint. However, while the stability of the European hemp market has allowed automakers to integrate its materials into their manufacturing processes, the immaturity of North American markets has slowed down progress towards similar integration among U.S. automakers. As the U.S. market matures, knowledge transfer within companies operating in both Europe and North America will help facilitate the use of hemp in North American-made vehicles as the materials become widely available.

Hemp fibers can also be used in paper production. The global hemp paper market size was estimated at $510 million in 2022 and is predicted to grow to nearly $1.7 billion by 2030.

Hemp Fiber Market Infographics

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