Top 5 Countries Leading the Way in Industrial Hemp Production

50,000 years ago, humans found a way to create fabric using Hemp, and ever since then, it has become one of the most widely used plants for industrial purposes, all across the globe.

Right from textiles to pharmaceuticals, biofuels to bioplastics, the usage and application of hemp as a sustainable crop is gaining momentum at a tremendous scale.

As countries are recognizing and appreciating the usage of industrial hemp, several of them have emerged as leaders in hemp cultivation and production.

Based on our research into the hemp industry, we have identified 5 top nations, which are hailed as leaders in industrial hemp cultivation and production.

These 5 nations are: China, India, USA, Canada & Netherlands.

In this blog, we will delve deep into each country, and find out more about their hemp innovation, cultivation practices, and market development initiatives.

China: The Hemp Giant

Historical Context

By several accounts, it has been established that China was among the first countries to identify hemp’s unique properties, and then deploy them for creating products and experiences.

In fact, historians investigating the Neolithic Age of 5th BC found hemp fiber imprints on Yangshao culture pottery, thereby establishing its usage and adoption.

Later, with research and practice, the Chinese started making clothes, shoes, ropes, and an early form of paper using hemp plants.

Another very interesting fact: Má, which is the Chinese term for cannabis, finds its first reference as a term for medical marijuana in 2700 BCE. By 10,000 BC, the Ancient Chinese had learned the medical usage of hemp, and also used it for ritual purposes within Taoism.

Around the same time, they started sending this plant to India and Central Asia, thereby expanding its usage and popularity.

Market Value

As per IndustryARC, the overall hemp industry in China is valued at around $19.7 billion, which exhibited a massive CAGR of 28% from 2020 to 2025.

Production Statistics

It’s estimated that in China, hemp is cultivated across 50,000 to 70,000 hectares of land, which makes it the world’s largest hemp producer.

Just for comparison: New Delhi, India’s largest city is around 1.5 lakh hectares!

Production Volume: As of 2025, China produces an estimated 70% of the world’s hemp, with fiber and seed production being their main modus operandi. An estimated 40,000 to 50,000 tonnes of hemp are cultivated in China every year.

Key Regions: Yunnan, Heilongjiang, and Inner Mongolia are considered as the key regions of hemp production in China.

Primary Strengths

Fiber Production: As per reports, China is producing 70% of hemp-based fabric, and this is a 10-15% of the overall usage of the hemp produced there. The rest of the hemp is mainly used for fuel and paper.

Seed Production: China is among the key nations supplying hemp seeds for manufacturing food items, and cosmetics.

Regulatory Protocols

Between 1980 and 1990, China banned the cultivation of hemp, mainly to clamp down on the abuse of high-THC cannabis (marijuana). In 2018, China’s Ministry of Agriculture and Rural Affairs released the “Hemp Planting Seeds Standard, which regulates the production and sale of hemp, for improving quality and stopping abuse.

France: European Leader In Hemp

Historical Context

France is the world’s 2nd biggest producer of hemp, and has an amazing history related to hemp and its usage.

The Eastern Iranian equestrian nomadic community called Scythians introduced hemp in France around 100 BCE, which they had received from Central Asia and China.

This was the Bronze Age, and within a few years, farmers in France had started using hemp for creating canvas for sails and sacks, rope, and as a textile.

Historians also have found strong evidence of France using hemp for textiles during the Neolithic Age, when this crop was mainly used for making textiles.

Even William Shakespeare mentioned the amazing quality of hemp-based fabric, sourced from a city in France called Locronan, in the tragic play Coriolanus.

In between, the production and usage of hemp declined, and almost became extinct, before its revival in the 1960s. Today, France is the world’s 2nd largest producer of hemp, having roughly 25% market share, and Europe’s biggest manufacturer.

Market Value

As per industry reports, the hemp industry in France is projected to cross EUR 6.1 billion by 2030, surging from EUR 695 million in 2024. France is responsible for producing roughly 50% of the hemp produced.

Production Statistics

Production Volume: 20,000+ hectares of land in France are being used for hemp production, with approximately 1.08 lakh tonnes of annual capacity, which is more than 60% of Europe’s entire capacity.

Key Regions: Champagne-Ardenne, Burgundy, and Picardy are considered to be the primary locations for hemp production in France.

Primary Strengths

France is known for producing ultra-high quality hemp plants, which are used for making durable and expensive hemp fabric. Out of 20,000 hectares of hemp production, around 3000 hectares are dedicated only to fabric production.

Regulatory Protocols

In France, hemp is only allowed to be produced, which is an authorized variety of Cannabis sativa L., and has a THC content of less than 0.3%, which aligns with the European laws for hemp production and sales.

India: Ancient Hemp Producer & Consumer

Historical Context

Along with China, India is among the oldest civilizations to have used cannabis and hemp in various forms and usages. In fact, the first instances of the term Bhanga can be found in early scriptures dating back to 1000 BCE, which is similar to the Chinese usage of hemp.

Vedas, which are estimated to be 1500 and 500 BCE old, have several mentions of Cannabis sativa, whose derivative plants were used to create Soma, the intoxicating drink. Atharvaveda (c. 1500–1000 BCE) mentions bhanga (which historians refer to as cannabis), as a medicine to relieve anxiety and stress.

Later, in Sushruta Samhita (c. 600 BCE), this same bhanga was used as a medicine to treat catarrh, phlegm, and diarrhea. As per the UN, around 3.2% of the Indian population consumes cannabis in some form, although recreational usage is banned.

After the complete ban on the cultivation and sale of hemp in 1985 under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, Uttarakhand allowed the cultivation of hemp in 2018, only for industrial usage.

The status of hemp production is complicated in India, with different rules in different states, based on industrial usage and application. A

Although hemp, as a plant, has been in use for thousands of years, industrial-level production is still low, but recent Govt regulations are changing the scenario.

Market Value

As per industry reports, the market size of hemp production for industrial usage was 97 million in 2022, which is projected to reach $450 million by 2030.  With ease of Govt regulations, more awareness, and demand for hemp-related products, Indian is witnessing a stunning 34% CAGR for hemp.

Production Statistics: In Indian hemp is primarily used for textiles, bioplastics, construction materials, and health products, with growing demand in the construction sector.

Production Volume: Almost 57% of the hemp produced in India is used for creating fabric, while the rest of the production is used mainly for manufacturing medicines. Almost 70% of industrial hemp is being produced in Uttrakhand, followed by Madhya Pradesh and Uttar Pradesh. After Himanchal Pradesh legalized industrial hemp in 2025, production has ramped up.

Primary Strengths: Due to the usage of hemp seed and hemp seed oil in making medicines for skin conditions, inflammation, and heart health, its usage and production both have increased manifold in India. Hemcrete, biofuels, hemp-based food, and hemp-based cosmetic products are other industrial applications.

Regulatory Protocols

Cultivation, sale, and usage of hemp are controlled by the Narcotic Drugs and Psychotropic Substances (NDPS) Act of 1985, which was allegedly introduced under US pressure. But ironically, the US has now allowed the cultivation and sale of hemp, both for recreational and industrial usage.

Legally, only those hemp plants that have 0.3% THC (tetrahydrocannabinol) or less is allowed to be cultivated, and it’s only allowed in Uttarakhand, Uttar Pradesh, Madhya Pradesh, and Himachal Pradesh as of now.

But, rules are expected to be changed soon, with more focus on cultivating high-quality hemp for industrial usage.

Canada: Emerging Powerhouse of Industrial Hemp

Historical Context

After cannabis reached Canada in the 17th century, primarily by sailors who used hemp-based strong and durable ropes, the usage and cultivation of hemp was banned in 1938, due to the negative stigma of marijuana.

In 1998, the State of Ottawa decided to distinguish marijuana from hemp, and thus began the journey of hemp cultivation and usage on a massive scale across Canada.

Health Canada, the Government Dept under the Canadian Govt, regulates and monitors the cultivation, production, usage, and sale of hemp in the country. Since the early 1990s, the  Hemp Awareness Committee at the University of Manitoba has been pretty active in advocating the popularity of hemp among farmers and agriculturalists.

Due to their efforts, the Canadian Govt allowed industrial production of hemp with only minute amounts of tetrahydrocannabinol, in 1998.

Market Value

After the recreational usage of cannabis was allowed in 2018, the production of both marijuana and industrial hemp has exponentially increased in Canada. The overall market value of the hemp industry was CAD 587 million in 2024, which will cross $1 billion by the time 2025 ends.

Production Statistics

Production Volume: As of 2025, hemp is cultivated across 100,000 hectares across Canada, with production capacity expected to surge beyond 94,000 tonnes by 2025 end. With increasing demand, a robust industry, and Govt support, Canada is fast becoming one of the biggest producers of industrial hemp.

Primary Strengths: In Canada, industry hemp production is primarily focussed on hemp seeds and grain, but gradually, the demand for fabric is increasing.

Key Regions: 90% of hemp in Canada is cultivated in and around Manitoba, Saskatchewan, and Alberta.

As shared earlier, the University of Manitoba is leading research advancements in hemp breeding and agronomy, empowering farmers to create stronger and more powerful varieties of hemp.

Regulatory Protocols

After industrial hemp was legalized in 1998, cultivation, sale, distribution, and usage of hemp in Canada is controlled under the Controlled Drugs and Substances Act (CDSA) (only for industrial hemp, which has less than 0.3% THC.

One interesting development that happened in Canada is that industrial hemp now includes derivatives from specific plant parts, in case they don’t have isolated or concentrated phytocannabinoids. This has allowed more wide-scale industrial usage of hemp across different industries such as medicine/pharma, biofuels, and bioplastics.

For recreational sale of cannabis, the government mandates the distribution of Consumer Information Documents with every shipment.

USA: Champion Of CBD

Historical Context

From China, hemp travelled to Europe, and from there, it reached the American continent in the 17th century, where sailors used hemp to make strong and durable rope, sails, and cloth.

In the early 1900s, the usage of hemp was at its peak. It’s said that Henry Ford, after creating the iconic Model T car, produced a prototype of a car, which was 100% made from hemp. He even wanted to run that car using biofuels made from hemp.

Critics hailed that prototype as an invincible car, due to its strength and durability. Popular Mechanics magazine, famously described hemp as the “new billion-dollar crop” in an article in 1938.

But suddenly, due to the recreational usage of marijuana, the US Government imposed the Marijuana Tax Act in 1937, which banned the cultivation and usage of the hemp plant across the nation.

Besides, due to the advent of synthetic products, the usage of industrial hemp declined severely and almost stopped.

The turning point came in 2014, when the US Government passed the 2014 Farm Bill, allowing cultivation of hemp, only for research purposes.

Market Value

In 2023, the overall market of the hemp industry was close to $1.6 billion, which is projected to reach $25 billion by 2032, growing at a CAGR of 21%. It’s estimated that hemp is being cultivated across 80,000-90,000 hectares.

Production Statistics

Production Volume: As of now, the USA uses hemp across 25,000 products in industries such as automotive, construction, personal care, cosmetics, food and beverages, food supplements, textiles, paper, and many other industries and more.

Primary Strengths: Around 8 million pounds of floral hemp is grown in the US every year, while 3.11 pounds of grain hemp is cultivated annually. Among production of hemp production, the USA leads the world in CBD-infused products, including oils, edibles, and topicals.

Hemp fiber is another very upcoming product, as more than 50 million pounds of hemp were produced in 2023, only for making hemp fabric. Around 4053 pounds of hemp is produced every hectare in the USA.

Key Regions: In the US, hemp is primarily cultivated in Utah, Kentucky, Oregon, Colorado, and California.

Regulatory Protocols

Hemp was first legally allowed to be cultivated in 2014, under the 2014 Farm Bill, but only for research and medical purposes.

Under the 2018 Farm Bill, hemp was removed from the definition of marijuana and then declared as cannabis with a THC concentration of less than 0.3%. Since then, the cultivation and sale of industrial hemp have been allowed across the USA.

However, cultivation and sale of marijuana are legal across only these states:

Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia (sales expected to commence), Washington, West Virginia (pending legislation), Washington D.C.

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