U.S. Hemp Oil Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

What is the U.S. Hemp Oil Market Size and Growth Rate?

• The U.S. hemp oil market size was valued at USD 2.40 million in 2024 and is expected to reach USD 16.08 million by 2032, at a CAGR of 26.80% during the forecast period
• The hemp oil market has seen significant advancements in recent years, particularly in the methods of extraction and product formulation. The latest technology in hemp oil extraction includes CO2 extraction, a clean, efficient, and environmentally friendly process that maximizes the quality and purity of the oil. This method ensures that the oil retains the full spectrum of cannabinoids, terpenes, and essential fatty acids, which are key to its health benefits
• In addition, nanotechnology is being increasingly used in the hemp oil market, especially for improving the bioavailability of cannabinoids, allowing for faster absorption and more effective therapeutic use. This innovation is particularly popular in the production of edibles, tinctures, and topicals

What are the Major Takeaways of Hemp Oil Market?

• The growth of the hemp oil market is driven by rising consumer demand for natural wellness products, particularly in the CBD sector. Hemp oil is gaining popularity as a skincare ingredient, with products targeting anti-aging, moisturizing, and acne treatments
• Moreover, the increased legalization of hemp in various regions has significantly opened up new opportunities for hemp-based products, contributing to market expansion
• The Hemp Seed Oil segment dominated the market with the largest revenue share of 47.5% in 2024, driven by its extensive use in food, cosmetics, and nutritional supplements

Report Scope and Hemp Oil Market Segmentation   

What is the Key Trend in the Hemp Oil Market?

“Clean Label and Functional Wellness Positioning”

• A significant trend reshaping the global hemp oil market is the growing consumer demand for clean label, organic, and multifunctional wellness products. Consumers are increasingly seeking plant-based, chemical-free, and sustainable solutions that promote overall health, aligning with the broader shift toward natural and transparent products
  • For instance, Elixinol Wellness Limited (Australia) offers a range of organic, full-spectrum hemp oils, marketed with a strong emphasis on transparency, traceability, and minimal processing to appeal to health-conscious buyers. Similarly, Nutiva Inc. (U.S.) promotes hemp oil products that are USDA-certified organic and Non-GMO, targeting the wellness and functional nutrition segments
• Hemp oil is no longer positioned solely for niche audiences but is increasingly integrated into mainstream wellness products, including skincare, dietary supplements, and functional foods. Brands are leveraging hemp oil’s perceived benefits for skin health, inflammation reduction, and cardiovascular wellness, supported by clean label claims
• The incorporation of hemp oil in beauty and nutraceutical segments reflects its growing status as a multifunctional wellness ingredient. For instance, products enriched with hemp seed oil highlight their omega-3, omega-6, and antioxidant content, aligning with trends in holistic health and self-care
• This evolving trend towards natural, transparent, and wellness-focused hemp oil offerings is reshaping market dynamics, prompting companies such as Bioriginal Food & Science Corp (Canada) to expand their product lines with clean label, plant-based hemp oil ingredients
• As consumers globally prioritize health, sustainability, and ingredient transparency, demand for organic, multifunctional hemp oil products is expected to grow, particularly across North America, Europe, and emerging health-focused markets

What are the Key Drivers of Hemp Oil Market?

• The rising awareness of hemp oil’s nutritional benefits, combined with evolving consumer preferences for plant-based and functional products, is a major driver of market expansion. Hemp oil’s high content of essential fatty acids, vitamins, and antioxidants is widely promoted for supporting heart health, skin nourishment, and overall wellness
  • For instance, in March 2024, Manitoba Harvest (Canada) launched an expanded range of organic hemp oil products targeting health-conscious consumers, highlighting functional benefits and clean-label positioning. Such initiatives by leading players fuel market growth
• Increased regulatory support for hemp-derived products, especially in North America, Europe, and parts of Asia-Pacific, has opened new avenues for hemp oil applications in food, cosmetics, and personal care industries. The removal of legal barriers and clearer guidelines is propelling innovation and new product launches
• In addition, growing consumer interest in sustainable agriculture and eco-friendly products is driving demand for hemp-based oils, given hemp’s low environmental footprint and regenerative farming potential. Consumers are increasingly associating hemp oil with both personal health and environmental sustainability

Which Factor is challenging the Growth of the Hemp Oil Market?

• Regulatory complexities and inconsistent legislation across regions remain a key barrier to market growth. Although many countries have legalized hemp cultivation and hemp-derived products, disparities in permissible THC content, labeling requirements, and import/export regulations create market fragmentation
  • For instance, varying THC thresholds between countries such as the U.S., Canada, and several EU nations create confusion for manufacturers and consumers, complicating cross-border trade and global expansion efforts
• Furthermore, misconceptions around hemp oil’s association with psychoactive cannabis products contribute to consumer hesitation, despite clear differentiation between CBD, THC, and hemp seed oil products
• Price sensitivity in emerging markets also poses a challenge, as premium organic hemp oils often carry higher costs compared to conventional vegetable oils. While companies such as Canah International SRL (Romania) and Agropro (Austria) have expanded affordable hemp oil offerings, price disparities still limit adoption, especially among budget-conscious consumers
• Overcoming these challenges requires enhanced regulatory harmonization, consumer education campaigns to dispel misconceptions, and the development of competitively priced hemp oil products to unlock growth potential globally

How is the Hemp Oil Market Segmented?

The market is segmented on the basis of products, type, source, component, extraction process, grade, distribution channel, and application.

• By Product

On the basis of product, the hemp oil market is segmented into Hemp Seed Oil, CBD Oil, and Hemp Flower Oil. The Hemp Seed Oil segment dominated the market with the largest revenue share of 47.5% in 2024, driven by its extensive use in food, cosmetics, and nutritional supplements. Hemp seed oil is valued for its rich profile of essential fatty acids, vitamins, and antioxidants, making it a preferred ingredient in wellness-focused products.

The CBD Oil segment is projected to witness the fastest CAGR from 2025 to 2032, fueled by growing consumer awareness of cannabidiol's potential benefits for stress relief, pain management, and overall wellness. Increasing regulatory approvals and expansion of CBD-infused product lines across cosmetics and pharmaceuticals further boost demand.

• By Type

On the basis of type, the hemp oil market is segmented into Original and Blended. The Original segment held the largest revenue share of 58.9% in 2024, attributed to consumer preference for pure, unaltered hemp oil formulations, especially in food-grade and pharmaceutical-grade applications. Original hemp oil is often positioned as a premium product with superior nutritional value and clean-label attributes.

The Blended segment is anticipated to register the fastest growth rate from 2025 to 2032, driven by innovation in product formulations that combine hemp oil with other natural oils or functional ingredients to enhance efficacy, flavor, or therapeutic benefits across food, cosmetic, and nutraceutical applications.

• By Source

On the basis of source, the hemp oil market is segmented into Organic and Inorganic. The Organic segment dominated the market with the largest revenue share of 64.3% in 2024, propelled by increasing consumer demand for chemical-free, sustainable, and eco-friendly products. Certifications such as USDA Organic and EU Organic contribute to consumer trust and premium product positioning.

The Inorganic segment is expected to experience moderate growth, particularly in price-sensitive markets where affordability is a key factor influencing purchasing decisions. While demand for organic products continues to rise, the availability of cost-effective inorganic hemp oils supports broader market accessibility.

• By Component

On the basis of component, the market is segmented into Hemp Seed Oil and Hemp CBD Oil. The Hemp Seed Oil segment accounted for the largest revenue share of 53.6% in 2024, owing to its versatility across food, cosmetics, and industrial applications. It is especially favored for its nutritional benefits and use in skin care formulations.

The Hemp CBD Oil segment is projected to grow at the fastest pace from 2025 to 2032, driven by rising global awareness of CBD's health benefits and increasing integration into wellness products, therapeutic supplements, and personal care offerings.

• By Extraction Process

On the basis of extraction process, the hemp oil market is segmented into Cold Pressed Hemp Seed Oil and Refined Hemp Seed Oil. The Cold Pressed Hemp Seed Oil segment dominated the market with a revenue share of 69.1% in 2024, attributed to its reputation for preserving the natural nutrient profile, clean-label appeal, and growing demand for minimally processed, high-quality oils.

The Refined Hemp Seed Oil segment is expected to witness steady growth, primarily for applications requiring neutral flavor, extended shelf life, or standardized ingredient specifications, particularly in industrial and cosmetic sectors.

• By Grade

On the basis of grade, the market is segmented into Food Grade and Pharmaceutical Grade. The Food Grade segment held the largest market share of 61.4% in 2024, driven by strong demand for hemp oil in nutritional supplements, health foods, and functional beverages. The product’s omega-rich profile and clean-label positioning contribute to its popularity.

The Pharmaceutical Grade segment is projected to expand rapidly, supported by growing R&D investment and regulatory approvals for CBD-based therapeutic applications across pain management, anxiety relief, and neurological disorders.

• By Distribution Channel

On the basis of distribution channel, the hemp oil market is segmented into Direct and Indirect. The Indirect segment dominated the market with a revenue share of 68.2% in 2024, owing to the widespread availability of hemp oil products through retail chains, supermarkets, e-commerce platforms, and specialty stores, enhancing accessibility for consumers.

The Direct segment, including company-owned websites and B2B sales, is anticipated to witness robust growth, driven by rising brand-owned e-commerce, subscription models, and the need for traceability and direct consumer engagement.

• By Application

On the basis of application, the hemp oil market is segmented into Food and Beverages, Personal Care/Cosmetics, Pharma and Nutraceuticals, Industrial Application, Agriculture, Animal Feed, and Others. The Food and Beverages segment accounted for the largest revenue share of 44.8% in 2024, fueled by rising consumer preference for plant-based nutrition, omega-3 enriched products, and functional foods.

The Personal Care/Cosmetics segment is projected to grow at the fastest CAGR from 2025 to 2032, driven by the expanding demand for hemp oil in skin care, hair care, and anti-aging products, alongside increasing awareness of natural, clean-label beauty solutions.

U.S. Hemp Oil Market Insight

U.S. hemp oil market is driven by the surging demand for plant-based wellness products and the growing integration of hemp oil across food, personal care, and nutraceutical sectors. Increasing consumer awareness regarding the health benefits of hemp-derived oils, such as improved skin health, heart wellness, and anti-inflammatory properties, fuels market expansion. Moreover, the favorable regulatory environment for hemp cultivation and hemp-based product development across several U.S. states further accelerates industry growth. The rising popularity of organic, clean-label, and multifunctional hemp oil products in the U.S. continues to strengthen the market's leading position in North America.  

Which are the Top Companies in Hemp Oil Market?

The hemp oil industry is primarily led by well-established companies, including:

• Nutiva Inc. (U.S.)
• Canopy Growth Corporation (Canada)
• Connolis LLC (U.S.)
• Maverik Oils (U.S.)
• NP Nutra (U.S.)
• Agropro (Austria)
• Canah International SRL (Romania)
• Ecofiber Limited (Australia)
• 13 Seeds Hemp Farm (Australia)
• Elixinol Wellness Limited (Australia)
• BOHECO (India)
• Manitoba Harvest (Canada)
• Sky Organics (U.S.)
• Velona (Sri Lanka)
• Live Verdure Ltd. (13 Seeds) (Australia)
• BOMBAY HEMP COMPANY PVT. LTD. (BOHECO) (India)
• Bioriginal Food & Science Corp (Canada)

What are the Recent Developments in U.S. Hemp Oil Market?

• In March 2021, Yooma Wellness Inc. expanded its presence in the hemp oil market by acquiring Socati Corp. This move aimed to broaden the company's geographic reach and strengthen its position in distributing and marketing hemp-derived wellness products, capitalizing on the growing demand for cannabinoid-based offerings
• In April 2020, QEMP entered the hemp oil market with the launch of qemp ZERO, a THC-free hemp seed oil infused with organic herbs. Positioned to tap into the rising interest in hemp-based products, qemp ZERO offers various benefits such as antioxidant support, catering to consumers seeking non-GMO, vegan options in hemp wellness
• In February 2020, Linwoods entered the hemp oil market with MULTIBOOST, a range of organic hemp seed mixes. Designed to enhance nutritional health, MULTIBOOST features organic milled hemp seeds, flax, chia seeds, mulberries, and mixed nuts. With versatile usage in salads, smoothies, dressings, and yoghurt, Linwoods targets health-conscious consumers seeking convenient hemp-infused dietary supplements

SKU-55061