Hemp Fiber Market Size, Share & Industry Analysis, By Type (Bast, Hurd/Shives, Tow, and Others), By End-Use (Textiles & Apparel, Composites, Pulp & Paper, Bioplastics & Additives, and Others), and Regional Forecast, 2025-2032

The global hemp fiber market size was valued at USD  3.03 billion in 2024. The market is projected to grow from USD  3.66 billion in 2025 to USD  16.43 billion by 2032, exhibiting a CAGR of 23.90% during the forecast period. Asia Pacific dominated the hemp fiber market with a market share of 39.6% in 2024.

Hemp fiber is the natural bast fiber obtained from the stalk of the Cannabis sativa L. plant, primarily from its outer stem (bast). It is one of the strongest and most durable plant-based fibers, known for its high tensile strength, breathability, and resistance to rot and pests. Hemp fiber is increasingly utilized across textiles, automotive parts, construction materials (such as hempcrete), bioplastics, and insulation due to its favorable mechanical and environmental properties, fueling the growth of the hemp fiber market.

Furthermore, the market encompasses several major players with Hemp Inc., HempFlax Group B.V., Ecofibre Ltd., and Dun Agro Hemp Group. leading the industry growth.

MARKET DYNAMICS

MARKET DRIVERS

Supportive Regulations and Legalization to Propel Market Growth

Legalization of industrial hemp allows for expanded cultivation and production of hemp fibers utilized in a wide range of industries such as textiles, construction, automotive components, packaging, and others. For instance, increased acceptance and legal backing have been witnessed in markets such as Australia, North America, Europe, and Asia-Pacific, all driving global hemp fiber market growth.

• For instance, in October 2021, South Africa declared hemp as an agricultural crop under the Plant Improvement Act. It established a hemp permit regime for import, export, cultivation, sale, and research, later refining cultivation guidelines. This puts seed/variety control on a formal footing and allows for legal fiber value chains.

MARKET RESTRAINTS

High Processing and Production Costs to Restrict Market Expansion

Hemp fiber requires complex, multi-step processing—such as decortication, carding, and spinning—with insufficient mechanization and infrastructure to support efficiency. Establishing such facilities demands substantial capital, limiting adoption, particularly among smaller players.

• According to the European Industrial Hemp Association (EIHA) reports, that the average cost of producing hemp straw in Europe is USD 931-1,397 per ton, depending on cultivation practices, scale, and processing facilities. This is significantly higher than flax, USD 466- 698 per ton, or jute imported from Asia, USD 233–466 per ton.

MARKET OPPORTUNITIES

Focus on Investing in Start-Ups to Create Lucrative Growth Opportunities

Investing in startups is becoming a key driver of emerging business opportunities in the global hemp fiber industry. Startups are connecting to various industries such as textiles, construction, automotive, and environmental uses, creating new hemp-based products focused on sustainability trends and circular economy standards.

• For example, in May 2024, the European multinational firm BASF SE, through its business incubator Chemovator, made a strategic investment in the Detroit hemp fiber startup Heartland. The backing will assist Heartland in strengthening partnerships within BASF and speeding up hemp fiber materials innovation for sustainable and eco-friendly industrial use.

HEMP FIBER MARKET TRENDS

Trend of Adopting Sustainable Fiber Supports Adoption of Hemp Fiber as an Eco-Friendly Alternative

Hemp uses much less water than cotton and does not depend heavily on pesticides or chemical fertilizers.

• According to the European Industrial Hemp Association (EIHA), hemp sequesters 8–15 tons of CO₂ per hectare, ranking it among the most efficient carbon-sequestering crops.

This makes hemp a climate-positive raw material that is compatible with the global decarbonization ambitions. International fashion and textile companies face pressure to cut back on their usage of cotton (high water usage) and polyester (made from fossil fuels). Hemp fiber is proving to be a sustainable alternative because of its biodegradability, strength, and environmentally friendly cultivation, further boosting the global hemp fiber market demand.

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Segmentation Analysis

By Type

Superior Material Performance and Wide Applications Lead Bast Segment Growth

In terms of type, the hemp fiber market is segmented into bast, hurd/shives, tow, and others.

The bast segment captured the largest global hemp fiber market share in 2024. Bast fibers contain significantly higher cellulose and less lignin than the woody core (hurds), making them stronger, longer, and more spinnable and suitable as composite reinforcement. That is why they are used for textiles, technical textiles, and high-performance composites. Their characteristics enable usage in textiles, automotive and aerospace composites, building (insulation, reinforcement), packaging, and even bio-composites. Bast hemp fibers are in rising demand because they are weather-resistant, UV-resistant, and antimicrobial, further broadening their base of application.

The hurd/shives segment is expected to grow at a high CAGR over the forecast period. They are utilized in animal bedding, molding packaging, nonwovens, and bioplastics. The technical versatility and competitive cost structure of hurd-based products invite new investment and ongoing innovations in processing and manufacturing technology.

By End Use

Growing Preference for Natural and Sustainable Textiles Propelled Textile and Apparel Segment Growth

Based on end-use, the market is segmented into textiles & apparel, composites, pulp & paper, bioplastics & additives, and others.

The textile and apparel segment dominates the global hemp fiber market. Hemp is expanding its role in ready-to-wear apparel, supported by increasing consumer demand for natural and sustainable materials textiles. Denim producers are especially fond of the durability of woven hemp fabric, which is now expanding into new weaves that are smoother and more dainty, for instance, through combinations with cotton. Since its recent legalization on an international scale, the international textile segment is now gravitating toward hemp, exploiting the plant's capacity to enrich soil health, promote biodiversity, eliminate weeds, and enhance subsequent crop yields – all on minimal or no inputs.  

• Asia-Pacific (particularly China and India) is leading the consumption and production of hemp fabric with the support of government investments. Most notably, India's Ministry of Textiles invested USD 14.3 million in 2023 in the promotion of hemp-based textiles, aiming for a 20% year-on-year output growth.

In addition, the pulp & paper segment is projected to grow at a high CAGR during the study period.

Hemp Fiber Market Regional Outlook

By geography, the market is categorized into Europe, North America, Asia Pacific, South America, and Middle East & Africa.

Asia Pacific

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Asia Pacific was the largest market for global hemp fiber in 2024, accounting for USD 1.20 billion. China and India are the major hemp fiber-producing countries with mature agricultural infrastructure, extensive cultivation, and governmental backing. China contributes to the supply of approximately half of the world's hemp fibers and is a significant exporter.

• According to the China Customs data, hemp fiber imported 837 Mt in 2020, an increase of 51.36% compared to the previous year.

Apart from China and India, Thailand, Australia, Japan, and other countries are also boosting hemp production and industrial consumption.

Europe

Europe is aided by strict environmental policies and EU-wide encouragement for carbon-neutral, bio-based inputs.  National initiatives in countries such as France, Germany, and the Netherlands support hemp cultivation and innovative uses.

North America

In the U.S. and Canada, specifically North America, legalization and regulatory instruments such as the 2018 U.S. Farm Bill have made industrial hemp farming and marketing possible.

Middle East & Africa

The Middle East's hemp fiber industry is developing, upheld by environmental initiatives and policy changes.

South America

South America is actively developing with favorable natural conditions and increasing investments, but with challenges in infrastructure and regulations.

COMPETITIVE LANDSCAPE

Key Industry Players

Geographic Presence & Expansion Supported their Leading Position

The market for hemp fiber is controlled by a number of established corporations worldwide, with a combination of agriculture producers, processors of fiber processors, and biotechnology companies. A few of the prominent manufacturers and suppliers are Hemp Inc., HempFlax Group B.V., Ecofibre Ltd., and Dun Agro Hemp Group. Compassnies are also innovating aggressively in order to enhance hemp fiber quality and processing techniques. They are also diversifying product offerings into textiles, building composites, bioplastics, and consumer goods. Companies are increasing operations in various regions, such as North America, Europe, Asia-Pacific, and South America, while taking advantage of host agriculture potential and regulatory environments.

• For example, in October 2022, Bast Fibre Technologies Inc. (BFT), the producer of sero hemp fiber, received significant strategic financing from Finnish Ahlström Capital, which allowed it to increase fiber manufacturing capacity at both its U.S. flagship plant at Lumberton, NC, and its EU plant near Düsseldorf, Germany. This funding will enable BFT to make more than 10,000 metric tons of its sero hemp fiber annually by 2023 and increase production to up to 50,000 metric tons a year by 2026.

LIST OF KEY HEMP FIBER COMPANIES PROFILED

• HempFlax (Netherlands)
• La Chanvrière (France)
• Cavac Biomatériaux (France)
• Dun Agro Hemp Group (Netherlands)
• BAFA Neu GmbH (Germany)
• Panda Biotech (U.S.)
• IND HEMP (U.S.)
• Bast Fibre Technologies (Canada)
• Canadian Rockies Hemp Corp. – CRHC (Canada)
• Hemp Fortex (China)

KEY INDUSTRY DEVELOPMENTS

• March 2025: Ekolution AB, a Swedish company, developed environmentally friendly building materials, with a particular focus on hemp fiber insulation. The new innovation offered excellent thermal performance and actively contributed to carbon sequestration, addressing the pressing need for eco-conscious construction solutions.
• January 2025: Ma’Rijany Hemp Company, one of the largest producers of high-quality long hemp fibers, constructed a USD 25 million industrial hemp processing plant in the Zhytomyr region. The plant is expected to employ about 200 workers in its first year, with processing volumes projected to grow to 12,000 tons and the workforce to reach 700 in subsequent years.
• March 2024: The Federation of International Hemp Organizations (FIHO) and ASTM International, a standards developer, signed a memorandum of understanding to collaborate on global guidance for the hemp value chain. ASTM already has some standards for hemp extracts, food seed, and building materials, but aims to broaden and deepen these standards to cover a wider range of hemp applications.
• September 2024: The Lower Sioux Indian Community in Minnesota established and launched a hemp fiber processing factory on its reservation. This facility supports the processing of hemp grown locally into hempcrete, a sustainable building material made from hemp hurd (inner stem), water, and a lime binder.

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Report Scope & Segmentation