Saudi Arabia industrial hemp market size, share, growth drivers, trends, opportunities & forecast 2025–2030

Saudi Arabia Industrial Hemp Market Overview

• The Saudi Arabia Industrial Hemp Market is valued at USD 15 million, based on a five-year historical analysis. This growth is primarily driven by increasing awareness of the benefits of hemp products, including their applications in textiles, food, and construction. The rising demand for sustainable and eco-friendly materials has further propelled the market, as consumers and industries alike seek alternatives to traditional resources. Recent trends highlight the adoption of hempcrete in construction, the use of hemp fiber in textiles, and the growing popularity of hemp-based nutritional products in the food and beverage sector .
• Key players in this market include Riyadh, Jeddah, and Dammam, which dominate due to their strategic locations and robust infrastructure. Riyadh serves as the capital and a central hub for trade and commerce, while Jeddah and Dammam are vital ports facilitating the import and export of hemp products. The concentration of industries and consumer markets in these cities enhances their significance in the industrial hemp landscape.
• The regulatory framework for industrial hemp in Saudi Arabia is governed by the “Regulation for the Control of Narcotic Drugs and Psychotropic Substances, 2005” issued by the Saudi Food and Drug Authority (SFDA). In recent years, the SFDA has issued specific guidelines allowing the import, processing, and use of industrial hemp products with THC content below 0.3%, subject to licensing and quality control standards. These measures aim to support local farmers and industries, encourage sustainable agricultural practices, and foster the development of hemp-based products .

Saudi Arabia Industrial Hemp Market Segmentation

By Type:The market can be segmented into various types, including Hemp Fiber, Hemp Seeds, Hemp Oil, CBD Hemp Oil, Hemp Protein, and Hemp Extract (without CBD). Each of these subsegments plays a crucial role in the overall market dynamics, catering to different consumer needs and industry applications. Hemp Fiber is primarily used in textiles and construction, while Hemp Seeds and Oil are gaining traction in food and personal care. CBD Hemp Oil is increasingly utilized in wellness and pharmaceutical applications, reflecting global trends in therapeutic hemp product adoption .

By End-User Industry:The industrial hemp market is also segmented by end-user industries, which include the Food and Beverage Industry, Textile Industry, Construction Industry, Personal Care and Cosmetics, Pharmaceutical and Healthcare, Animal Feed, and Others. Each industry utilizes hemp products for various applications, contributing to the market's growth. The Food and Beverage Industry leads due to the nutritional benefits of hemp seeds and oil, while the Textile and Construction Industries are expanding their use of hemp fiber and hempcrete for sustainable solutions .

Saudi Arabia Industrial Hemp Market Competitive Landscape

The Saudi Arabia Industrial Hemp Market is characterized by a dynamic mix of regional and international players. Leading participants such as Al-Fahim Group, Saudi Agricultural and Livestock Investment Company (SALIC), Al-Muhaidib Group, Al-Jazira Agricultural Company, Al-Hokair Group, Al-Faisaliah Group, Al-Suwaidi Industrial Services, Al-Babtain Group, Al-Mansour Group, Al-Rajhi Group, Al-Safi Danone, Al-Othaim Holding, Al-Khodari Sons Company, Herba Nutrition (Saudi Hemp Wellness Products), Green Arabia Agricultural Company contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Industrial Hemp Market Industry Analysis

Growth Drivers

• Increasing Demand for Sustainable Products:The global shift towards sustainability is driving the demand for industrial hemp, with the market for eco-friendly products projected to reach $150 billion in future. In Saudi Arabia, the government aims to diversify its economy, and hemp's low environmental impact aligns with Vision 2030 goals. The agricultural sector is expected to see a 5% increase in sustainable practices, further boosting hemp cultivation and product development.
• Government Support for Agricultural Innovation:The Saudi government has allocated approximately $1.5 billion for agricultural innovation initiatives in future. This funding is aimed at enhancing crop yields and promoting alternative crops like industrial hemp. The Ministry of Environment, Water, and Agriculture is actively encouraging research and development, which is expected to increase hemp cultivation by 20% in future, fostering a more robust industrial hemp sector.
• Rising Awareness of Health Benefits:The health benefits of hemp-derived products, particularly CBD, are gaining traction in Saudi Arabia. The global CBD market is projected to reach $20 billion in future, with increasing consumer interest in natural remedies. Local health campaigns and educational programs are expected to boost awareness, leading to a 15% increase in demand for hemp-based health products in the region, further driving market growth.

Market Challenges

• Regulatory Uncertainties:The regulatory landscape for industrial hemp in Saudi Arabia remains ambiguous, with no clear framework established for cultivation and distribution. As of future, only 30% of potential hemp farmers are licensed, limiting market entry. This uncertainty hampers investment and slows down the growth of the industry, as stakeholders await clearer guidelines from the government.
• Competition from Established Industries:The industrial hemp market faces stiff competition from established sectors such as cotton and synthetic fibers, which dominate the textile industry. In future, the textile market in Saudi Arabia was valued at $2.3 billion, overshadowing the nascent hemp sector. This competition poses a significant challenge for hemp producers, who must differentiate their products to gain market share and consumer acceptance.

Saudi Arabia Industrial Hemp Market Future Outlook

The future of the industrial hemp market in Saudi Arabia appears promising, driven by increasing consumer demand for sustainable products and government initiatives supporting agricultural innovation. As regulatory frameworks become clearer, the market is likely to attract more investments, fostering growth in hemp cultivation and product development. Additionally, advancements in processing technologies will enhance product quality, making hemp a more competitive alternative in various industries, including textiles and health.

Market Opportunities

• Export Potential to Neighboring Markets:Saudi Arabia's strategic location offers significant export opportunities for industrial hemp products to neighboring markets in the Gulf Cooperation Council (GCC). With a combined population of over 50 million, these markets present a lucrative avenue for growth, particularly in eco-friendly textiles and health products, potentially increasing export revenues by 25% in future.
• Development of Hemp-Based Products:The growing interest in hemp-derived products, such as biodegradable plastics and health supplements, presents a unique opportunity for local entrepreneurs. By investing in product development, companies can tap into the projected $150 billion global market for sustainable goods, potentially increasing local production capacity by 30% in future.