India Industrial Hemp Market was valued at USD 229.93 million in 2024 and is anticipated to reach USD 1602.62 million by 2032, at a CAGR of 24.1% during the forecast period.
REPORT ATTRIBUTE
DETAILS
Historical Period
2020-2024
Base Year
2024
Forecast Period
2025-2032
India Industrial Hemp Market Size 2024
USD 229.93 Million
India Industrial Hemp Market, CAGR
24.1%
India Industrial Hemp Market Size 2032
USD 1602.62 Million
The India Industrial Hemp Market grows on the strength of rising demand for sustainable raw materials, expanding applications in textiles, food, pharmaceuticals, and construction, and supportive government initiatives that promote licensed cultivation. It gains momentum from consumer preference for eco-friendly fabrics, plant-based nutrition, and bio-based industrial inputs. Trends highlight growing adoption of hemp seed oil in personal care, hempcrete in construction, and hemp-derived food in retail channels. Regulatory clarity in progressive states and increasing research collaborations with universities further accelerate innovation. The market reflects a clear shift toward sustainability-driven consumption and industrial integration, reinforcing its long-term growth trajectory.
The India Industrial Hemp Market shows strong geographical concentration in northern states such as Uttarakhand, Himachal Pradesh, and Jammu & Kashmir, where favorable climate and supportive policies enable large-scale cultivation. Western and southern regions contribute through industrial applications and consumer-focused innovations, while eastern states gradually expand cultivation potential. Key players include Bombay Hemp Company (BOHECO), HempStreet, Health Horizons, Namrata Hemp Company, HempCann Solutions, Hempsters, and the Indian Hemp Association, all driving growth through product diversification, research initiatives, and advocacy efforts.
Access crucial information at unmatched prices!
Request your sample report today & start making informed decisions powered by Credence Research Inc.!
The India Industrial Hemp Market was valued at USD 229.93 million in 2023 and is projected to reach USD 1602.62 million by 2032, registering a CAGR of 24.1% during the forecast period.
Rising demand for sustainable raw materials drives growth across textiles, food, pharmaceuticals, and construction industries.
Trends indicate increasing adoption of hemp seed oil in personal care, hempcrete in eco-friendly construction, and hemp-based nutrition in retail channels.
Competitive dynamics are shaped by startups and enterprises focusing on research, product diversification, and brand positioning.
Market restraints include regulatory ambiguity, complex licensing processes, and limited processing infrastructure that restrict scalability.
Geographically, northern states such as Uttarakhand, Himachal Pradesh, and Jammu & Kashmir dominate due to supportive policies, while western and southern regions contribute through industrial applications and consumer innovations.
Leading companies like BOHECO, HempStreet, Health Horizons, HempCann Solutions, Namrata Hemp Company, Hempsters, and the Indian Hemp Association strengthen the sector through advocacy and innovation.
Market Drivers
Rising Demand for Sustainable Raw Materials
The India Industrial Hemp Market grows on the strength of rising demand for sustainable raw materials across multiple industries. It provides an eco-friendly alternative to cotton and synthetic fibers, offering durability and reduced water consumption in cultivation. The textile sector adopts hemp-based fabrics to cater to consumers seeking natural and organic clothing options. In construction, hempcrete gains attention for its insulation properties and low carbon footprint. The paper industry also incorporates hemp pulp to reduce reliance on wood-based sources. These applications reinforce hemp’s role as a versatile raw material that aligns with environmental and regulatory priorities.
For instance, HempStreet reported trials of hempcrete panels with a thermal conductivity of 0.06 W/mK, offering superior insulation performance over conventional cement blocks.
Expanding Applications in Food and Nutraceuticals
Hemp-based food and nutritional products drive another significant demand stream within the India Industrial Hemp Market. It delivers high protein content, omega-3 fatty acids, and dietary fiber, supporting consumer preferences for plant-based nutrition. Health-conscious populations adopt hemp seeds, protein powders, and oil as functional food ingredients. Companies introduce fortified snacks and beverages that integrate hemp for added health benefits. Rising awareness of immunity and wellness enhances the scope of these products in retail channels. Regulatory progress further supports hemp-based food integration into mainstream consumer diets, strengthening growth momentum in the segment.
For instance, Health Horizons lists hemp hearts that contain 32.42 grams of protein, 7.473 grams of omega-3, 24.050 grams of omega-6, and 4.06 grams of dietary fibre per 100 grams, showcasing its nutritional potency.
Government Support and Policy Shifts
Policy reforms and state-level initiatives strengthen the market by enabling cultivation and commercialization. The India Industrial Hemp Market benefits from pilot projects in states like Uttarakhand and Uttar Pradesh, where legal frameworks allow licensed hemp farming. Government backing for research into hemp’s industrial potential boosts investor confidence. Institutions collaborate with agricultural universities to promote high-yield seed varieties and sustainable farming practices. These measures create structured supply chains that reduce reliance on imports. The evolving policy landscape reflects increasing recognition of hemp’s role in economic development and rural income generation.
Technological Innovation and Industrial Adoption
Technological advancements in processing and product development amplify market opportunities. It benefits from modern decortication and fiber separation technologies that improve yield and quality. Startups and established enterprises invest in machinery that enhances scalability in textiles, bio-composites, and automotive interiors. Innovations in hemp-based bioplastics support substitution of petroleum-derived polymers, meeting sustainability goals in packaging industries. Pharmaceutical companies explore cannabidiol (CBD) applications for therapeutic use under regulated frameworks. This convergence of innovation and industrial adoption positions hemp as a high-value crop with diverse applications, reinforcing long-term market expansion.
Market Trends
Growing Acceptance of Hemp-Based Textiles
The India Industrial Hemp Market reflects a clear trend toward sustainable fashion and eco-friendly fabrics. It demonstrates strong adoption in apparel, home furnishings, and accessories as consumers prioritize natural fibers over synthetics. Designers integrate hemp blends with cotton and silk to deliver breathable, durable, and premium-quality products. Global fashion brands highlight hemp as part of their sustainability goals, influencing local adoption patterns. Rising urban consumer awareness accelerates demand for eco-conscious clothing lines. This shift positions hemp textiles as a central component of the broader sustainable fashion movement.
For instance, BOHECO’s Hemp Fabric Lab offers woven fabrics and blends across a wide GSM range from 90 to over 500 gsm tailored for apparel, soft furnishings, and accessories, enabling designers to select from lightweight to heavy-duty textures.
Rising Popularity of Hemp-Derived Food Products
Nutritional and wellness trends drive increased demand for hemp-based food products in India. It supports consumer interest in plant-based proteins, superfoods, and functional beverages. Hemp seeds and oil enter retail and online marketplaces, promoted for their nutritional value. Startups introduce hemp-based snacks, protein powders, and cold-pressed oils to target health-conscious buyers. Growing penetration of organized retail improves accessibility across urban centers. This momentum highlights hemp’s potential to strengthen its role in the food and nutraceutical sectors.
For instance, Mercedes-Benz confirmed that its C-Class models use panels reinforced with natural fibers, including hemp, with each vehicle integrating up to 20 kg of hemp composites in door panels and rear shelves.
Expanding Role in Industrial and Construction Applications
Industrial uses of hemp continue to gain attention, with hempcrete and bio-composites leading adoption trends. The India Industrial Hemp Market demonstrates traction in construction for insulation and lightweight materials. Automotive manufacturers experiment with hemp-based composites to reduce vehicle weight and improve fuel efficiency. Packaging industries integrate hemp bioplastics to support sustainability targets. Growing demand for cost-effective and renewable substitutes strengthens adoption in these sectors. This trend underscores hemp’s ability to position itself as a mainstream industrial raw material.
Increasing Research and Regulatory Clarity
The market witnesses rising collaboration between research institutions, startups, and state governments. It benefits from trials in hemp cultivation, seed improvement, and processing technologies. Regulatory clarity in states such as Uttarakhand encourages new entrants to explore commercial hemp opportunities. Research into cannabidiol (CBD) applications for wellness and pharmaceuticals continues under controlled frameworks. Academic institutions focus on expanding hemp’s role in bio-based materials and nutraceuticals. These developments reinforce confidence in hemp as a regulated, scalable, and future-ready industry in India.
Market Challenges Analysis
Regulatory Uncertainty and Licensing Barriers
The India Industrial Hemp Market faces persistent challenges linked to regulatory ambiguity and licensing procedures. It operates under strict legal frameworks due to hemp’s association with cannabis, creating delays in cultivation approvals and commercialization. Farmers struggle to secure permits in multiple states, which restricts large-scale production. Complex compliance requirements limit entry for small and mid-sized enterprises. Uneven policies across regions hinder uniform market development and discourage investor participation. These regulatory gaps reduce supply chain efficiency and slow overall industry expansion.
Limited Infrastructure and Consumer Awareness
Infrastructure deficits present another obstacle to the sustainable growth of the sector. The India Industrial Hemp Market lacks advanced processing units and efficient distribution channels, which restrict the scalability of hemp-based products. Farmers encounter difficulties in accessing modern machinery for decortication and fiber processing, lowering yield quality. Consumer awareness about hemp’s industrial and nutritional benefits remains limited, often overshadowed by misconceptions related to cannabis. This knowledge gap reduces acceptance in mainstream food, textiles, and healthcare markets. Without stronger awareness campaigns and investment in processing capacity, the industry will face barriers in meeting its potential.
Market Opportunities
Expanding Role in Sustainable Consumer Goods
The India Industrial Hemp Market presents strong opportunities in textiles, personal care, and food products that align with sustainability goals. It offers natural fibers that can replace resource-intensive cotton and polyester, supporting eco-conscious fashion initiatives. Hemp oil and protein-rich seeds open prospects in wellness, functional foods, and skincare formulations. Rising demand for cruelty-free and organic personal care products creates room for hemp-based oils and creams. Growing e-commerce penetration expands visibility of hemp-derived goods to urban and semi-urban consumers. These opportunities reinforce hemp’s positioning as a high-value input for sustainable consumer markets.
Industrial Applications and Export Potential
Industrial adoption of hemp creates further growth avenues across construction, automotive, and packaging sectors. The India Industrial Hemp Market benefits from hempcrete, bioplastics, and composite materials that provide lightweight, durable, and eco-friendly alternatives. Global automotive manufacturers explore hemp composites to reduce weight and emissions, opening new supply opportunities for Indian producers. Bio-based packaging driven by sustainability regulations enhances demand for hemp fiber applications. Export potential grows as international markets seek ethically sourced hemp from regions with low-cost agricultural bases. These industrial and export-focused opportunities position hemp as a catalyst for long-term sectoral expansion.
Market Segmentation Analysis:
By Type
The India Industrial Hemp Market demonstrates strong diversification across hemp seed, hemp seed oil, hemp fiber, and other derivatives. Hemp seed dominates demand with its high protein, omega fatty acids, and nutritional value that attract health-conscious consumers. Hemp seed oil finds increasing applications in skincare, pharmaceuticals, and dietary supplements for its antioxidant properties. Hemp fiber emerges as a crucial raw material for textiles, ropes, composites, and bio-based materials due to its strength and durability. Other derivatives, such as hemp protein powder and hemp-based extracts, add to the versatility of the sector. This variety strengthens the market’s appeal across both consumer and industrial segments.
For instance, peer‑reviewed data confirms whole hemp seeds contain exactly 32 g of protein per 100 g. According to agribusiness reports, hemp cultivation in Uttarakhand yields precisely 1,000 kg of fiber and 450 kg of seeds per acre per crop cycle.
By Source
The India Industrial Hemp Market is segmented into organic and conventional categories. Organic hemp production gains traction among urban consumers who prefer chemical-free and sustainable products in food, cosmetics, and apparel. It aligns with premium positioning and appeals to international markets where organic certification supports export growth. Conventional hemp farming maintains a larger share due to its cost-effectiveness and wider acceptance across industrial applications. Both sources play a significant role, with organic offering value-added potential while conventional supports large-scale supply stability.
For instance, Food Products Export Development Authority (APEDA) confirmed that India produced 3.04 million metric tons of certified organic agricultural output in 2021–22 under the National Programme for Organic Production (NPOP).
By Application
The India Industrial Hemp Market records substantial adoption in food and beverages, textiles, pharmaceuticals, construction materials, and other sectors. Food and beverages represent a fast-growing segment, with hemp-based protein powders, oil, and seeds entering mainstream retail. Textiles maintain steady demand with hemp fabrics used in sustainable fashion and industrial applications. Pharmaceutical applications advance with cannabidiol (CBD) research and hemp-based formulations for wellness. Construction materials such as hempcrete highlight hemp’s potential in eco-friendly building solutions. Other uses, including paper, bioplastics, and personal care, further broaden adoption. These application segments collectively highlight hemp’s ability to serve as a multipurpose input in consumer and industrial markets.
Segments:
Based on Type:
Hemp Seed
Hemp Seed Oil
Hemp Fiber
Others
Based on Source:
Organic
Conventional
Based on Application:
Food & Beverages
Textile
Pharmaceuticals
Construction Material
Others
Based on the Geography:
Northern
Western
Southern
Eastern
Regional Analysis
Northern
The Northern region holds the largest market share of 38% in the India Industrial Hemp Market, driven by favorable climatic conditions and progressive state-level policies. Uttarakhand leads cultivation efforts with government-backed initiatives that provide farmers licenses for commercial hemp production. Himachal Pradesh and Jammu & Kashmir also emerge as key contributors, supported by their natural suitability for hemp cultivation. Demand for hemp-based food products and textiles grows rapidly in urban centers such as Delhi and Chandigarh, where consumer awareness about sustainability is strong. The presence of small and medium enterprises in the northern belt further supports processing and value addition. This dominance reflects the region’s role as a production hub and innovation center for hemp-based goods.
Western
The Western region accounts for 24% of the market share, supported by its robust industrial base and strong demand from textile and automotive sectors. Rajasthan and Gujarat explore hemp’s industrial potential, particularly in fiber-based applications for composites and eco-friendly fabrics. Maharashtra contributes through research-driven startups that introduce hemp-based nutrition and personal care products. Urban demand in cities such as Mumbai, Pune, and Ahmedabad drives awareness of hemp as a sustainable material. The region also benefits from export-oriented initiatives, leveraging port infrastructure to supply hemp-based goods to global markets. This combination of industrial innovation and consumer demand positions western India as a growing hub for diversified hemp applications.
Southern
The Southern region represents 22% of the market share, with Karnataka, Kerala, and Tamil Nadu contributing significantly. The textile and apparel industries in this region adopt hemp fabrics to cater to eco-conscious domestic and international buyers. Food and nutraceutical companies in Bengaluru and Hyderabad develop hemp-based health supplements and beverages, supported by growing consumer awareness of plant-based nutrition. Research collaborations with agricultural universities strengthen cultivation practices and improve processing efficiency. The hospitality and wellness sectors in Kerala and coastal areas integrate hemp oils and derivatives into personal care and spa products. This regional ecosystem underscores the role of southern India in blending industrial capability with consumer-oriented innovation.
Eastern
The Eastern region holds 16% of the market share, emerging as a smaller but steadily growing contributor. States such as West Bengal and Odisha show rising interest in hemp cultivation supported by fertile land and favorable climate. The textile sector in Kolkata explores hemp blends for traditional and modern fabrics, while smaller industries in Bihar and Jharkhand experiment with hemp-based ropes and composites. Awareness about hemp nutrition expands in urban areas, though infrastructure and processing facilities remain limited compared to other regions. Government-led rural development programs provide opportunities for integrating hemp farming into livelihood schemes. The eastern region’s gradual adoption highlights its potential to expand market contribution with improved policy and infrastructure support.
Shape Your Report to Specific Countries or Regions & Enjoy 30% Off!
The India Industrial Hemp Market features include Hemp Republic Hemp Inc Satliva Health Horizons Hempster India Hemp & Co Vedi BOHECO (Bombay Hemp Company) GreenJams HempFlax Group BV Hempstrol Namrata HempCo. The India Industrial Hemp Market demonstrates a competitive landscape shaped by innovation, sustainability, and diversification across multiple applications. Companies focus on strengthening their supply chains, improving cultivation practices, and introducing high-value products in textiles, food, pharmaceuticals, and construction materials. Startups emphasize consumer awareness campaigns, highlighting hemp’s nutritional and ecological benefits to expand demand in urban centers. Established enterprises invest in research and advanced processing technologies to enhance yield quality and scalability, ensuring consistency in product supply. Strategic collaborations with agricultural institutions and state governments support regulatory compliance and promote structured industry growth. Market participants differentiate through product quality, branding, and alignment with sustainability goals, creating a dynamic and evolving competitive environment.
Recent Developments
In March 2025, Hemp cultivation gains momentum in select Indian states like Uttarakhand, Uttar Pradesh, and Himachal Pradesh because of favorable policies allowing industrial hemp growth with THC below 0.3%. This presents opportunities in eco-friendly textile and nutraceutical sectors.
In February 2025, The India Hemp Expo 2025 was held from February 23-24 in Delhi, bringing together industry professionals, entrepreneurs, and stakeholders to accelerate growth in the hemp sector. The event showcased diverse applications including food, cosmetics, textiles, and medicine.
In October 2024, Canopy Growth Corporation acquired Wana, which includes Wana Wellness, LLC, The CIMA Group, LLC, and Mountain High Products, LLC. With this acquisition, Canopy USA holds 100% of Wana’s equity interests.
In January 2023, HempMeds Brasil launched two new full-spectrum products. These new products were created to suit the new requirements of Brazilian doctors who intend to suggest it to their patients.
Market Concentration & Characteristics
The India Industrial Hemp Market reflects a moderately fragmented structure with a mix of startups, farmer-led cooperatives, and emerging enterprises driving competition across regions. It shows concentration in northern states such as Uttarakhand and Himachal Pradesh where regulatory approval and favorable climate support cultivation. The market remains characterized by early-stage development, with companies focusing on product innovation in textiles, food, pharmaceuticals, and construction applications. Differentiation relies on sustainable sourcing, quality certification, and brand positioning to appeal to urban and export-oriented buyers. Research collaborations and government-backed initiatives strengthen credibility and enable gradual expansion of supply chains. It demonstrates strong potential for consolidation in the future as scaling enterprises attract investments and align operations with evolving regulatory clarity. This structure highlights both the opportunities and constraints of a sector in transition toward maturity.
Report Coverage
The research report offers an in-depth analysis based on Type, Source, Application and Geography. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
The India Industrial Hemp Market will expand with growing acceptance of hemp-based textiles in sustainable fashion.
It will gain momentum from rising demand for hemp-derived protein, oil, and nutritional products in urban markets.
Industrial applications in construction and automotive will strengthen with adoption of hempcrete and bio-composites.
Policy reforms and regulatory clarity across more states will encourage large-scale cultivation.
Research and development in cannabidiol (CBD) applications will create opportunities in wellness and pharmaceuticals.
E-commerce and organized retail will increase consumer access to hemp-based food and personal care products.
Export potential will rise as global demand for eco-friendly fibers and bio-based materials grows.
Investment in advanced processing technology will improve efficiency and product quality.
Farmer cooperatives and startups will play a greater role in strengthening supply chains.
Rising consumer awareness about sustainability will position hemp as a mainstream alternative in multiple industries.
For Table OF Content – Request For Sample Report –
Access crucial information at unmatched prices!
Request your sample report today & start making informed decisions powered by Credence Research Inc.!
We prioritize the confidentiality and security of your data. Our promise: your information remains private.
Ready to Transform Data into Decisions?
Request Your Sample Report and Start Your Journey of Informed Choices
Providing the strategic compass for industry titans.
Frequently Asked Questions:
What is the current market size for India Industrial Hemp Market, and what is its projected size in 2032?
The India Industrial Hemp Market was valued at USD 229.93 million in 2023 and is projected to reach USD 1602.62 million by 2032.
At what Compound Annual Growth Rate is the India Industrial Hemp Market projected to grow between 2025 and 2032?
The market is projected to grow at a CAGR of 24.1% during the forecast period.
Which India Industrial Hemp Market segment held the largest share in 2023?
Hemp seed held the largest share in 2023 due to its nutritional demand and wide consumer adoption.
What are the primary factors fueling the growth of the India Industrial Hemp Market?
Key drivers include rising demand for sustainable raw materials, expanding applications in textiles, food, pharmaceuticals, and supportive government policies.
Who are the leading companies in the India Industrial Hemp Market?
Leading companies include BOHECO, HempStreet, Health Horizons, Namrata Hemp Company, HempCann Solutions, Hempsters, and the Indian Hemp Association.
Which region commanded the largest share of the India Industrial Hemp Market in 2023?
The Northern region led with 38% share in 2023, supported by favorable climate and state-level cultivation policies.
About Author
Ganesh Chandwade
Senior Industry Consultant
Ganesh is a senior industry consultant specializing in heavy industries and advanced materials.
India Safety Gloves Market size was valued at USD 467.44 million in 2024 and is anticipated to reach USD 1040.17 million by 2032, at a CAGR of 9.28% during the forecast period.
India Pet Food Market size was valued at USD 872.16 million in 2023 and is anticipated to reach USD 2133.48 million by 2032, at a CAGR of 10.45% during the forecast period.
The India Electrical Switches market was valued at USD 409.13 million in 2024 and is expected to reach USD 784.96 million by 2032, growing at a CAGR of 8.24% during the forecast period.
India Custom T-Shirt Printing Market was valued at USD 570.5 million in 2024 and is projected to reach USD 1,164.4 million by 2032, growing at a CAGR of 8.25% during the forecast period.
India Last Mile Delivery Market size was valued at USD 3533.56 million in 2023 and is anticipated to reach USD 10552.72 million by 2032, at a CAGR of 12.93% during the forecast period.
The India Real Estate Market size was valued at USD 3,70,200.0 million in 2018 to USD 5,29,605.9 million in 2024 and is anticipated to reach USD 11,49,095.0 million by 2032, at a CAGR of 10.30% during the forecast period.
The India Single Specialty Hospital Market size was valued at USD 8,703.7 million in 2018 to USD 16,158.6 million in 2024 and is anticipated to reach USD 40,136.8 million by 2032, at a CAGR of 12.10% during the forecast period.
The India Hospital Market size was valued at USD 75,300.0 million in 2018 to in 2024 and is anticipated to reach USD 2,33,730.0 million by 2032, at a CAGR of 10.30% during the forecast period.
India Second-Hand Apparel Market size was valued at USD 3003.65 million in 2023 and is anticipated to reach USD 9111.35 million by 2032, at a CAGR of 13.04% during the forecast period.
Purchase Options
The report comes as a view-only PDF document, optimized for individual clients. This version is recommended for personal digital use and does not allow printing. Use restricted to one purchaser only.
$2999
To meet the needs of modern corporate teams, our report comes in two formats: a printable PDF and a data-rich Excel sheet. This package is optimized for internal analysis. Unlimited users allowed within one corporate location (e.g., regional office).
$4999
The report will be delivered in printable PDF format along with the report’s data Excel sheet. This license offers 100 Free Analyst hours where the client can utilize Credence Research Inc. research team. Permitted for unlimited global use by all users within the purchasing corporation, such as all employees of a single company.
Thank you for the data! The numbers are exactly what we asked for and what we need to build our business case.
Materials Scientist (privacy requested)
The report was an excellent overview of the Industrial Burners market. This report does a great job of breaking everything down into manageable chunks.
