Hemp Fiber Market Report Scope & Overview:

The Hemp Fiber market size was valued at USD 1.55 billion in 2024 and is expected to reach USD 5.70 billion by 2032, growing at a CAGR of 17.67% over the forecast period of 2025-2032.

Hemp fiber market is gaining high momentum with increasing demand for eco-friendly materials in the textile & apparel industry and natural fibers applications. Advancements in technology by the hemp fiber companies, such as HempFlax and Ecofibre, are maturing the fiber processing for e-textiles and composites and are therefore driving the market for hemp fiber. The hemp fabric sector is growing with support in fashion and workwear, mirroring the larger hemp fiber market pushing for sustainability and performance textiles. According to USDA statistics, industrial hemp fiber production in the U.S. was 60.4 million pounds in 2024, a 23% increase from the previous year, with harvested area reaching 18,855 acres. South Dakota was in the lead for new fiber acreage, up 22%, or 3,900 acres. These trends demonstrate the increasing hemp fiber market size, growing hemp fiber market share, and favorable hemp fiber market analysis due to favorable regulations and increased investment in industrial hemp technology advancement.

Market Dynamics:

Drivers:

• Increasing demand from the paints and coatings industry fuels hemp fiber market expansion worldwide

The paints and coatings sector is using hemp fibre as a reinforcing filler in sustainable compounds. Hemp enhances coating's durability and complies with environmental legislation, thus promoting the development of the hemp fiber market. Hemp fiber companies, such as Cavac Biomateriaux, are working in tandem with coatings companies to provide the so-treated hemp fiber. This market share is also growing beyond textile applications to fulfill industrial coatings, reemphasizing the role of natural fiber materials in new applications. The hemp fiber market is characterized by this diversification as a key growth factor.

• Government incentives for industrial hemp cultivation boost hemp fiber market growth in key regions

Industrial hemp growth is supported by policies such as the 2018 Farm Bill and Canada’s hemp programs. In 2024, U.S. fiber hemp grew 23% year on year, said the USDA. These benefits help lower the barriers to entry of hemp fiber companies and drive positive hemp fiber market trends. That boost to production adds to a larger market for hemp fiber, and gives a push to the future of the hemp fabric industry and industries dependent on it.

Restraints:

• Competition from established synthetic fibers restrains hemp fiber market penetration in textiles

Synthetic fibers, including polyester, lead the textile chemicals market due to their relatively lower prices and well-developed supply chains. Synthetics represented more than 65% of all fibers produced globally in 2023, according to Textile Exchange. In addition, this has hampered the market share of hemp fibers, which are unable to compete in price and performance. Even with increased interest in sustainability, synthetic options are still a lynchpin for many designers. Hemp fiber market analysis indicates progress, although the market penetration is a challenging factor for hemp fiber companies.

Segmentation Analysis:

By Source

Conventional hemp dominated the hemp fiber market in 2024 with a 66.2% share, as they are commonly grown and possesses an established industrial supply chain. States such as South Dakota listed 3,900 acres in hemp production, and provided for a contiguous fiber supply. HempFlax and American Hemp have both scaled traditional processing lines for textiles and construction. Additional support from USDA hemp pilot programs has reinforced the conventional supply base, driving the expansion of the hemp fiber market and consolidating leadership in textile chemicals and industrial hemp applications.

Organic hemp fiber is the fastest-growing segment, with a projected CAGR of 17.85% from 2025 to 2032. Growth is attributed to consumer inclination toward certified organic" textiles and sustainable merchandise. Institutional bodies such as the USDA, as well as the OTA, encourage organic certification and help to drive adoption. There is an emerging use of short fibers, from organically grown hemp, as an insulation for homes and even as a component in automobile bodies. Hemp fiber manufacturers are working to increase certified organic hemp cultivation, which will further bolster hemp fiber market share in eco-sensitive industries such as natural fiber and hemp fabric.

By Type

Long (bast) fibers held a 62.5% market share in 2024, making them the dominant fiber type in the hemp fiber market. Due to their high tensile strength, these fibers are used in technical textiles, fashion, and composites. HempFlax and Dun Agro installed state-of-the-art decortication lines for the production of fine bast fibers. Their incorporation in the automotive and textile chemicals industries points to their industrial significance and increases the demand for the hemp fiber market across manufacturing centers worldwide.

Short (hurd/shives) fibers are growing rapidly with a CAGR of 17.83% during the forecast period. This growth is due to rising applications in bio-based construction materials, nonwoven fabrics, and animal bedding. New emerging companies like Cavac Biomateriaux and Panda Biotech are ramping up hurd fiber processing for use as insulation and molded packaging,” he said. USDA studies confirm that increased fiber yield is possible with dual-purpose hemp cultivars, allowing more efficient use of the whole plant. These are powerful drivers for the hemp fiber market growth and its expansion outside the textile market and into the green packaging and sustainable building market.

By Application

Fashion and textile applications dominated the hemp fiber market in 2024 with a 32.2% share, driven by consumer shifts toward natural fibers and circular fashion. Global fashion brands are integrating hemp fabric into apparel collections due to its durability and sustainability. The Hemp Industries Association (HIA) supports development in this segment. Companies such as Canvaloop and EnviroTextiles are supplying hemp textiles to both luxury and mass-market brands, reflecting strong hemp fiber market trends and affirming its leadership in the textile and apparel industry.

E-textiles are the fastest-growing application in the hemp fiber market with an estimated CAGR of 18.13% from 2025 to 2032. Innovation in conductive natural fibers and integration with wearable sensors is driving adoption in sportswear, health monitoring, and military textiles. Research funded by the U.S. Department of Agriculture supports functional fiber R&D, while companies like Hemp Black are pioneering hemp-based smart fabrics. This high-potential segment reflects cutting-edge hemp fiber market trends, enhancing overall hemp fiber market analysis and industry appeal.

Regional Analysis:

Asia Pacific dominated the hemp fiber market in 2024 with a 30.3% market share and is expected to grow at the highest CAGR of 18.15% through 2032. Cost-effective production, growing applications in textiles, and government-subsidized hemp growing propel regional growth. As of 2023, China is reported to have more than 50% of the total crop area worldwide of industrial hemp, due to the planned farming in Yunnan and Heilongjiang. Players like Hemp Fortex and Yunnan Industrial Hemp are ramping up supply toward both domestic and export markets, further consolidating the lead SPI in Asia Pacific, as it grows its market share of hemp fiber across the textile and apparel sectors.

North America accounted for 29.1% of the hemp fiber market by 2024, owing to an established regulatory framework and rising demand across the construction, textile, and industrial sectors. The 2018 U.S. Farm Bill was then passed to make industrial hemp legal and foster industrial-scale cultivation and processing sites. Hemp fiber companies such as American Hemp LLC and Colorado Hemp Works increased their decortication capacity to fulfill textile and composite demand. The area is supported by ample USDA assistance programs and natural fiber acceptance across sectors, aiding hemp fiber market growth and allowing for sustainable industrial hemp application.

The U.S. leads North America’s hemp fiber market with a size of USD 322.50 million in 2024 and is expected to witness significant growth from 2025 to 2032 in terms of acreage and sophisticated processing capabilities. In 2024, the USDA reported 18,855 acres of hemp grown for fiber and 60.4 million lbs harvested. South Dakota was in the lead with 3,900 acres devoted to fiber. HempFlax USA and BastCore have ramped up decortication and processing facilities to keep pace with growing demand in textile chemicals and insulation. The U.S. Hemp Roundtable and the National Hemp Association call for the development of infrastructure and assert market access in all sectors.

Europe holds a 25.4% share in the hemp fiber market, led by France, which produces over 70% of the region’s hemp fiber. EU subsidies and strict environmental policies support hemp cultivation for sustainable textiles and construction. Companies like Cavac Biomateriaux process bast fibers for insulation and apparel. Rising demand for natural fiber and hemp fabric across the textile and apparel industry boosts hemp fiber market growth and aligns with Europe’s green transition goals.

LAMEA is emerging as a key region in the hemp fiber market, driven by regulatory reforms, export initiatives, and legalization efforts across Latin America, the Middle East, and Africa. Uruguay and Colombia lead pilot fiber projects, while South Africa issued over 50 hemp licenses by 2023. Rising demand for sustainable textiles, government-backed support, and growing interest in natural fiber applications in construction and fashion are boosting the hemp fiber market growth and attracting investment in the textile and apparel industry.

Key Players:

The major hemp fiber market competitors include HempFlax BV, Dun Agro Hemp Group, Cavac Biomateriaux, BaFa, Ecofibre Ltd., American Hemp, LLC, Panda Biotech, LLC, Canvaloop, Konoplex LLC, and Shanxi Greenland Textile Co. Ltd.

Recent Developments:

• In April 2025, Panda Biotech partners with TDMI Twin Dragon to launch an American-grown hemp denim collection, combining traceable hemp fiber with advanced denim manufacturing

• In April 2024, Panda Biotech officially begins commercial operations at its flagship Panda Hemp Gin, a zero-waste, 100% renewable-energy facility in Texas