Hemp Clothing Industry Could Exceed $23 Billion by 2031, Report Says

Although hemp is predominantly known for its many agricultural, health, and wellness products and uses, the lesser-known hemp-derived clothing market is poised to explode in the coming decade.

One of the earliest uses for hemp was not for paper or medicine but as a versatile and comfortable clothing material. The first archaeological findings of hemp fabric, a testament to its enduring quality, date back to roughly 10,000 years ago in China, making hemp one of the world's oldest and most prized cultivated crops. 

Hemp fabric is lightweight, allowing for more breathable clothes. Yet, it is also one of the most robust materials for manufacturing fabric—for example, the Levi Strauss Co. uses hemp fiber for its world-famous jeans.

Hemp fabric is derived from the stem of the cannabis sativa plant (cannabis and hemp are two parts of the same plant) and is similar to other materials like bamboo, jute, and linen, which all come from plant stems or basts. 

For millennia, hemp was the most popular source for clothing manufacturing and was traded worldwide. Hemp reached North America in the early 1600s, long before cotton, and was cultivated all over the continent by farmers, including several of the nation's Founding Fathers.

Hemp, a beacon of sustainability, is a wonderfully organic and readily biodegradable alternative to nonbiodegradable synthetic fibers. If a shirt made from hemp goes into a landfill, it immediately begins to break down naturally.

Along with clothing, Americans utilized hemp to produce wagon covers, ropes, and grain bags, among many other items. However, once cotton got a foothold in the New World, the use of hemp as a fabric source quickly evaporated.

With the passage of the 2018 Farm Bill, which legalized hemp for cultivation, production, and sale for the first time in almost a century, the plant has started to make a dramatic and impactful comeback in many areas, including textiles and fabric manufacturing.

According to a new report released by Allied Market Research, the resurgent new hemp clothing industry should experience steady and substantial growth well into the next decade. The 2021 global hemp clothing market generated $2.29 billion in revenue. The new study projects that amount to exceed $23 billion by 2031, which is an astonishing compound annual growth rate (CAGR) of 27.1%.

In the report, analysts from Allied Market Research explain the factors that make hemp an attractive investment in 2024, aside from its production of a rugged and breathable fiber. 

"Hemp fabric requires less water, chemical fertilizers, pesticides, and herbicides than other fabrics. It has a lower carbon footprint than many other crops because it is effective at removing carbon dioxide from the environment. In a growing season, one acre of hemp will absorb 10 to 15 tons of CO2, which is equal to the typical annual CO2 output of one person," the report reads.

"Hemp fabric requires less water, chemical fertilizers, pesticides, and herbicides than other fabrics. It has a lower carbon footprint than many other crops because it is effective at removing carbon dioxide from the environment. In a growing season, one acre of hemp will absorb 10 to 15 tons of CO2, which is equal to the typical annual CO2 output of one person."

- Report on Hemp Clothing Market Projection by Allied Market Research

It is also a much more sustainable option for mass production than cotton. Yet it is also a high-yield crop, producing more fiber from the same area as other less efficient crops. According to a 2020 research study, 1 hectare of hemp produces the same amount of fabric as 2 to 3 hectares of cotton. 

Other beneficial traits of using hemp fiber to make clothing include:

• Hemp is eight times stronger than other fabrics used for daily wear.

• Hemp fabric protects the wearer from the sun's UV rays and possesses antimicrobial properties.

• Hemp clothing gets better with age. The more one wears it, the softer it feels on the skin.

• Hemp has remarkable thermoregulating properties, which keep the wearer warm in cold weather and cooler when the temperatures rise.

• Hemp fabric does not wrinkle as easily as linen and can be machine or hand-washed.

• Hemp clothing is more water-absorbent than other fabrics, making it ideal for dyeing with natural dyes.

The researchers explained in their report, "Hemp is also good for the soil. If hemp was originally planted in a field, the production of maize from that field (would) be higher. Following the harvest of hemp, it's also a good idea to sow wheat and barley. Some producers are trying to get hemp and cannabis growing certified as organic because of all the potential environmental advantages."

"Hemp is also good for the soil. If hemp was originally planted in a field, the production of maize from that field (would) be higher. Following the harvest of hemp, it's also a good idea to sow wheat and barley. Some producers are trying to get hemp and cannabis growing certified as organic because of all the potential environmental advantages."

- Report on Hemp Clothing Market Projection by Allied Market Research

The projections from Allied Market Research coincide with a similar report by the Business Research Company's "Hemp Fiber Global Market Report 2024," published on March 8. According to the TBRC's market forecast, the hemp fiber market is expected to approach $50 Billion in 2028 at a CAGR of 35%.

While much of the American hemp industry is embroiled in controversies regarding intoxicating hemp derivatives (IHDs), like delta-8 THC and others, hemp fiber could provide investors with a safer bet over IHDs, which are facing prospective restrictions, bans, and other legal challenges in over 30 states. 

However, as legal and moral barriers confronting hemp continue to fall, technology, along with regulatory maturity, should help stabilize the current overall uncertainty in the global hemp industry, allowing for newer markets for hemp clothing to flourish well into the middle of the century.