Industrial Cannabis Market Valued at $73 Billion in 2025, Expected to Surpass $196 Billion by 2034

That’s an 11.53% compound annual growth rate, underscoring the expanding demand for cannabis products across industries ranging from hemp textiles and wellness to construction and bioplastics. This growth “is driven not only by the shift towards renewable materials and sustainable production but also by the increasing legalization and commercialization of hemp-based products in multiple industries”, states the report. Europe currently leads the global market with 36% of total share, while North America is expected to post the fastest growth through 2034 as legalization accelerates and sustainable materials gain traction. Hemp fiber products make up the largest segment, accounting for 36% of the market in 2024, while cannabinoids and hemp-derived wellness ingredients are expected to see some of the fastest growth rates over the coming decade.

Industrial cannabis—primarily referring to hemp—has become a cornerstone of the sustainability movement. Its fibers are strong, renewable, and biodegradable, making them an attractive replacement for synthetics in apparel, building materials, and consumer goods.

“Hemp offers an ideal mix of durability and eco-friendliness,” the report notes, adding that controlled-environment cultivation is further improving yields and consistency.

Artificial intelligence is playing an increasingly central role in this growth. AI-driven monitoring systems and machine learning algorithms now help cultivators fine-tune humidity, lighting, and nutrient levels in real time, maximizing yields while minimizing environmental impact. In manufacturing, AI-powered quality control and predictive analytics are improving cannabinoid extraction efficiency and product purity. This integration of automation and precision agriculture has made industrial hemp one of the most technologically advanced agricultural sectors.

Hemp’s applications continue to expand rapidly. In textiles, its hypoallergenic and UV-resistant qualities have made it a sustainable alternative to cotton. In construction, hempcrete and fiber-reinforced composites are being adopted as green building materials. The food and wellness industries are also turning to hemp seeds, oils, and CBD extracts for their nutritional and therapeutic properties.

Europe’s dominance is fueled by policy alignment around sustainability and medical cannabis adoption, while the U.S. and Canada are driving hemp grain and cannabinoid exports. China remains the largest producer of hemp textiles, with Canada leading in seed and protein production. Emerging markets like India and Thailand are beginning to follow suit as they modernize their cannabis regulations.

Leading players in the space include Ecofibre Limited, Charlotte’s Web Holdings, Hemp Inc., Elixinol Wellness, HemPoland, and Blue Sky Hemp Ventures, all of which are expanding global production and refining technologies for hemp-based fibers, oils, and biocomposites.

Despite strong momentum, regulatory inconsistencies remain a hurdle. Conflicting laws, financial restrictions, and compliance challenges continue to complicate growth in some regions. However, the global shift toward renewable materials, coupled with legalization and innovation, is expected to propel the industry to nearly triple its value by 2034.

If current trends hold, industrial cannabis will solidify its position as one of the world’s most versatile and sustainable agricultural commodities—transforming everything from clothing and cosmetics to construction and clean energy.