The global hemp seed oil market is projected to surge from USD 147.8 million in 2025 to USD 855.7 million by 2035, expanding at a strong CAGR of 19.2%. This significant growth stems from rising consumer preference for natural, nutrient-rich ingredients across food and beverages, cosmetics, nutraceuticals, and personal care segments. Known for its rich fatty acid profile, antioxidant content, and vitamins, hemp seed oil is becoming a staple ingredient in sustainable and clean-label product formulations.

A favorable regulatory ecosystem in key regions such as North America and Europe is accelerating market adoption. Supported by legalization of industrial hemp cultivation, these regions are experiencing rapid commercialization across retail, nutraceuticals, and skincare categories. At the same time, advancement in cold-press extraction methods is improving quality, consistency, and sensory attributes of hemp seed oil, a key contributor to market expansion globally.

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Regulatory Support Boosts Production and Market Access

Government policies are playing an instrumental role in shaping industry growth. In the United States, the 2018 Farm Bill legalized the commercial cultivation of industrial hemp with minimal THC content, enabling large-scale processing and boosting demand for hemp-derived ingredients.

Similarly, the European Union has clarified rules supporting hemp cultivation and product safety, promoting research, commercial production, and cross-border trade. However, in Asia and parts of Latin America, regulatory inconsistencies related to THC limits and labeling standards still constrain market entry. Global alignment on compliance frameworks is expected over the next decade, improving transparency and boosting consumer confidence worldwide.

Key Investment Segments: Market Insights

Conventional Hemp Seed Oil Leads Market Demand

Conventional hemp seed oil is estimated to command more than half of the global market in 2025, driven by its extensive use in mainstream food, cosmetics, and nutraceutical applications. Manufacturers prefer conventional variants due to cost-effectiveness and scalability while retaining nutritional properties such as omega fatty acids and antioxidants.

While organic hemp seed oil is witnessing steady growth due to increasing consumer preference for sustainable and chemical-free ingredients, its higher price continues to limit widespread adoption. Nonetheless, the organic segment is expected to benefit from the clean-label movement in premium personal care and functional food brands.

Food Grade Hemp Seed Oil Maintains Leadership Position

Food grade hemp seed oil continues to dominate market consumption, fueled by its increasing use in salad dressings, cold-pressed oils, nutrition beverages, bakery products, and fortified foods. Consumers are seeking natural ingredients with health benefits such as improved heart, brain, and skin health, strengthening adoption in plant-based and functional food innovations.

Pharmaceutical grade oil, while smaller in volume, caters to high-purity applications in therapeutic supplements and advanced dermatology formulations. As clinical research on hemp-based therapeutics expands, this segment is expected to gain significance in the coming decade.

Cold Pressed Oils Gain Momentum as Premium Products

The cold-pressed segment is forecast to record the fastest growth over the next 10 years, driven by consumer awareness of minimally processed oils and premium-quality wellness products. Cold-press extraction retains a higher content of essential fatty acids, vitamins, and antioxidants, appealing strongly to health-focused buyers.

This processing method is increasingly used in luxury skincare, organic supplements, gourmet foods, and high-quality wellness beverages. Meanwhile, refined hemp seed oil remains popular in industrial and mass-market applications due to its lower cost and neutral sensory profile.

Food and Beverages Lead End-User Applications

Hemp seed oil is gaining rapid momentum in the food and beverages category, particularly in dairy alternatives, nutritional blends, salad oils, smoothies, and ready-to-drink functional beverages. Its light, nutty flavor and natural nutrition profile make it a key differentiator in clean-label products. Complementary growth in nutraceuticals and personal care further supports global market penetration, driven by increased consumer awareness of inflammation reduction, heart health, and skin nourishment benefits.

Premium Category Experiencing Fastest Growth

Premium hemp seed oil products are expanding rapidly due to strong demand for organic, cold-pressed, traceable, sustainably sourced ingredients. Brands are differentiating through eco-friendly packaging, storytelling around sourcing transparency, and certifications for purity, ultimately commanding higher price points in both cosmetics and food categories.

Market Challenges and Emerging Opportunities

Challenge: Regulatory Complexity

Variations in global regulations surrounding hemp classification, CBD restrictions, THC thresholds, and labeling protocols create trade barriers and compliance burdens for manufacturers and exporters.

Opportunity: Plant-Based Wellness Boom

The global shift toward sustainable and plant-based products is propelling demand for hemp seed oil in dietary supplements, vegan skincare, organic foods, and functional beverages. Product innovations such as cold-pressed organic oils, hemp-infused cosmetics, and blended nutraceuticals present strong growth opportunities.

Regional Growth Snapshot

• United States: Expanding demand in nutraceuticals and skincare driven by legalization and consumer education.
• United Kingdom: Increasing interest in vegan beauty, plant-based diets, and chemical-free skincare.
• European Union: Favorable Novel Food regulations and surging organic product adoption.
• Japan: Rising use in herbal medicine and premium skincare.
• South Korea: Strong adoption in K-beauty and functional wellness supplements.

Competitive Landscape

Global manufacturers are investing in premiumization, sustainable farming, patented extraction, and strategic partnerships to strengthen market share. Brands focusing on traceability, purity, and formulation innovation are best positioned to capture value through 2035.

Key Players- Nutiva Inc., Canopy Growth Corporation, Connolis LLC, Maverik Oils, NP Nutra, Hemp Oil, Agropro, Canah International SRL, Z-Company, Ecofiber Limited

Information Source: https://www.futuremarketinsights.com/reports/hemp-seed-oil-market