Industrial Hemp Market in South Korea

Industrial Hemp in South Korea Trends and Forecast

The future of the industrial hemp market in South Korea looks promising with opportunities in the food & beverage, textile, pharmaceutical, personal care product, animal nutrition, and paper markets. The global industrial hemp market is expected to reach an estimated $25 billion by 2031 with a CAGR of 21.2% from 2025 to 2031. The industrial hemp market in South Korea is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising legalization of industrial hemp cultivation, increasing use of hemp seed and hemp seed oil in food applications, and the growing incidence of chronic diseases.

• Lucintel forecasts that, within the type category, hemp seed will remain the largest segment over the forecast period due to high nutrition ratio.
• Within the application category, food & beverage will remain the largest segment due to increasing demand for plant-based protein.

Emerging Trends in the Industrial Hemp Market in South Korea

The industrial hemp market in South Korea is experiencing rapid transformation driven by changing regulations, technological advancements, and shifting consumer preferences. As awareness of sustainable and eco-friendly products grows, the industry is poised for significant expansion. Innovations in cultivation, processing, and product development are opening new opportunities for local and international players. Government support and increasing demand for health-conscious products are further fueling growth. These developments are collectively reshaping the landscape of the industrial hemp sector, making it a vital component of South Korea’s agricultural and industrial future. Understanding these trends is essential for stakeholders aiming to capitalize on emerging opportunities and navigate potential challenges effectively.

• Growing Regulatory Support: The South Korean government is progressively easing restrictions on industrial hemp cultivation, recognizing its economic and environmental benefits. Recent policy reforms facilitate licensing and promote research initiatives, encouraging farmers and businesses to invest in hemp cultivation. This regulatory shift reduces barriers to entry, fostering industry growth and innovation. As legal frameworks become more supportive, more stakeholders are likely to participate, leading to increased production and diversification of hemp-based products. The trend signifies a strategic move towards sustainable agriculture and aligns with global efforts to promote eco-friendly industries.
• Technological Advancements in Cultivation and Processing: Innovations in agricultural technology are revolutionizing hemp cultivation in South Korea. Precision farming, drone monitoring, and improved seed varieties enhance yield quality and efficiency. Advanced processing techniques, such as decortication and extraction, enable the production of high-quality fibers, oils, and extracts. These technological improvements reduce costs, increase scalability, and improve product consistency. As a result, companies can meet rising demand for hemp-based products across various sectors, including textiles, cosmetics, and food. This trend is crucial for establishing South Korea as a competitive player in the global hemp industry.
• Diversification of Product Offerings: The market is witnessing a broadening of hemp product categories beyond traditional uses. Consumers are increasingly interested in hemp-infused foods, beverages, cosmetics, and wellness products. Innovative formulations leverage hemp’s natural benefits, such as anti-inflammatory and antioxidant properties, appealing to health-conscious markets. This diversification opens new revenue streams for producers and attracts a wider consumer base. Additionally, brands are emphasizing organic and sustainable credentials, aligning with global trends towards eco-friendly consumption. The expansion of product offerings is positioning South Korea as a versatile hub for hemp-based innovations.
• Rising Consumer Awareness and Demand: Increased awareness of hemp’s health and environmental benefits is driving consumer demand in South Korea. Educational campaigns and media coverage highlight hemp’s nutritional value and eco-friendly cultivation practices. Consumers are seeking natural, sustainable alternatives to synthetic products, boosting sales of hemp-based foods, skincare, and textiles. This heightened awareness influences purchasing decisions and encourages brands to develop transparent, ethically sourced products. As demand grows, market players are investing in branding and marketing strategies to capitalize on consumer interest, further accelerating industry growth and acceptance.
• Sustainable and Eco-Friendly Industry Focus: Sustainability is becoming a core principle in South Korea’s hemp industry. Cultivators and manufacturers are adopting eco-friendly practices, such as organic farming and biodegradable packaging. Hemp’s carbon sequestration ability and low water requirements reinforce its environmental appeal. The industry is also exploring circular economy models, utilizing waste hemp materials for bioenergy and other applications. This focus on sustainability not only aligns with global environmental goals but also enhances brand reputation and consumer loyalty. The emphasis on eco-conscious practices is shaping the industry’s future trajectory, making it a key differentiator in the competitive landscape.

These trends are collectively transforming South Korea’s industrial hemp market into a dynamic, innovative, and sustainable sector. Regulatory support and technological advancements are lowering barriers and increasing efficiency, while product diversification and rising consumer awareness expand market reach. The focus on sustainability further enhances industry credibility and appeal. Together, these developments are positioning South Korea as a significant player in the global hemp industry, fostering economic growth, environmental responsibility, and consumer trust. Stakeholders who adapt to these trends will be well-placed to capitalize on emerging opportunities and contribute to a resilient, forward-looking industry.

Recent Developments in the Industrial Hemp Market in South Korea

The industrial hemp market in South Korea is experiencing rapid growth driven by increasing demand for sustainable products, evolving legal frameworks, and technological advancements. As environmental concerns rise globally, South Korea is positioning itself as a key player in the hemp industry, leveraging its agricultural potential and innovative processing techniques. The government’s supportive policies and growing consumer awareness are further fueling this expansion. This dynamic market is attracting investments from both domestic and international players, aiming to capitalize on the versatile applications of hemp. The convergence of regulatory reforms, technological progress, and market demand is shaping a promising future for industrial hemp in South Korea, with significant economic and environmental implications.

• Regulatory Reforms: Recent amendments in South Korea’s laws have eased restrictions on hemp cultivation, allowing farmers to grow industrial hemp legally. This regulatory shift has opened new avenues for farmers and entrepreneurs, reducing barriers to entry and encouraging investment. The government’s supportive stance aims to promote sustainable agriculture and diversify the economy. These reforms have also led to increased research and development activities, fostering innovation in hemp-based products. As a result, the market is witnessing a surge in cultivation areas and product diversity, positioning South Korea as a competitive player in the global hemp industry. This legal environment is crucial for sustainable growth and attracting foreign investment.
• Technological Advancements in Hemp Processing : Innovations in processing technologies are significantly enhancing the quality and efficiency of hemp product manufacturing in South Korea. Advanced extraction methods, such as supercritical CO2 extraction, are enabling the production of high-purity CBD and other bioactive compounds. These technological improvements are reducing production costs and increasing yield, making hemp products more competitive in the market. Additionally, automation and precision farming techniques are optimizing cultivation practices, ensuring consistent quality and higher productivity. The integration of these technologies is fostering the development of diverse hemp-based products, including textiles, cosmetics, and food items, thereby expanding market reach and consumer acceptance. This progress is positioning South Korea as a leader in hemp innovation.
• Growing Consumer Demand for Sustainable Products: Consumers in South Korea are increasingly seeking eco-friendly and health-conscious products, driving demand for hemp-based goods. The versatility of hemp, from textiles to dietary supplements, aligns with the rising trend of sustainable consumption. Market surveys indicate a significant shift towards organic and natural products, with hemp gaining popularity due to its environmental benefits and health properties. This consumer preference is encouraging brands to develop innovative hemp products, expanding the market scope. The demand is also supported by educational campaigns highlighting hemp’s eco-friendly attributes, which are influencing purchasing decisions. As a result, the market is experiencing rapid growth, with increased sales and new product launches across various sectors.
• Investment and Market Expansion: The burgeoning hemp industry in South Korea is attracting substantial domestic and foreign investments. Venture capitalists and agribusiness firms are investing in cultivation, processing facilities, and product development to capitalize on market potential. This influx of capital is facilitating infrastructure development and technological upgrades, further boosting production capacity. Market expansion is also driven by strategic partnerships and collaborations with international companies, enhancing product distribution and brand recognition. The government’s incentives and supportive policies are playing a vital role in attracting investors. Overall, these investments are accelerating market growth, creating employment opportunities, and positioning South Korea as a key player in the global hemp economy.
• Environmental and Economic Impact: The expansion of the hemp industry is contributing positively to South Korea’s environmental and economic landscape. Hemp’s low water and pesticide requirements make it an eco-friendly crop, reducing agriculture’s carbon footprint. Economically, the industry is generating new income streams for farmers and local communities, fostering rural development. The diversification of agricultural practices through hemp cultivation is also promoting sustainable land use. Additionally, the industry’s growth is supporting the development of eco-conscious products, aligning with global sustainability goals. These environmental and economic benefits are reinforcing the industry’s long-term viability and societal acceptance, making hemp a strategic asset for South Korea’s sustainable development.

The recent developments in South Korea’s industrial hemp market are transforming it into a vibrant and sustainable industry. Regulatory reforms are lowering barriers, enabling broader cultivation and innovation. Technological advancements are improving product quality and processing efficiency, expanding market applications. Growing consumer demand for eco-friendly products is fueling market expansion and diversification. Increased investments are accelerating infrastructure development and global integration. Lastly, the environmental and economic benefits are reinforcing the industry’s long-term sustainability. Collectively, these developments are positioning South Korea as a competitive and innovative leader in the global hemp market, with promising economic and ecological prospects.

Strategic Growth Opportunities for Industrial Hemp Market in South Korea

The industrial hemp market in South Korea is poised for significant expansion driven by evolving regulations, increasing consumer demand for sustainable products, and technological advancements. As awareness of hemp’s versatile applications grows, businesses and policymakers are exploring new avenues for growth. This presents a unique opportunity for stakeholders to capitalize on emerging markets, develop innovative products, and establish South Korea as a key player in the global industrial hemp industry.

• Expanding regulatory support and government initiatives to promote industrial hemp cultivation and processing in South Korea offer substantial growth opportunities. Relaxation of restrictions and incentives for farmers can increase cultivation areas, leading to higher raw material availability. This regulatory environment encourages investment in hemp-based products, fostering industry development and attracting international partnerships, ultimately boosting the market’s overall size and competitiveness.
• Rising consumer awareness and demand for sustainable, eco-friendly products drive growth in hemp-based consumer goods such as textiles, cosmetics, and food products. As consumers seek natural alternatives, companies are innovating with hemp-derived ingredients and expanding product lines. This trend supports market expansion, encourages R&D investments, and opens new retail channels, positioning hemp as a key component in South Korea’s sustainable lifestyle movement.
• Technological advancements in hemp cultivation, processing, and extraction methods enhance product quality and reduce costs, creating new growth avenues. Innovations such as precision agriculture and efficient extraction techniques improve yield and purity, making hemp products more competitive. These developments enable local producers to meet international standards, increase export potential, and diversify product offerings, thereby strengthening South Korea’s position in the global hemp industry.
• Development of specialized infrastructure and supply chain networks for hemp cultivation, processing, and distribution can significantly boost market growth. Establishing dedicated processing facilities, storage, and logistics hubs reduces bottlenecks and ensures quality control. A robust supply chain attracts investment, facilitates large-scale production, and enables timely delivery to domestic and international markets, fostering industry scalability and economic benefits.
• Increasing collaborations between academia, industry, and government to foster innovation and research in hemp applications can accelerate market growth. Joint research initiatives can lead to new product development, improved cultivation techniques, and a better understanding of hemp’s benefits. These partnerships promote knowledge sharing, skill development, and commercialization, positioning South Korea as a leader in hemp innovation and expanding its market footprint globally.

The overall impact of these opportunities is set to transform South Korea’s industrial hemp market into a dynamic, sustainable, and globally competitive sector. Strategic regulatory support, technological progress, consumer trends, infrastructure development, and collaborative efforts will drive growth, diversify applications, and enhance economic benefits. This integrated approach will establish South Korea as a prominent player in the evolving global hemp industry landscape.

Industrial Hemp Market in South Korea Driver and Challenges

The factors responsible for driving the industrial hemp market in South Korea include technological advancements, economic growth, regulatory support, increasing consumer awareness, and sustainable development initiatives. These drivers collectively foster a conducive environment for market expansion, innovation, and adoption of hemp-based products. However, the market also faces challenges such as strict regulatory frameworks, social stigma, and supply chain limitations, which could hinder growth. Understanding these drivers and challenges is essential for stakeholders to navigate the evolving landscape and capitalize on emerging opportunities effectively.

The factors responsible for driving the industrial hemp market in South Korea include:
• Technological Advancements: South Korea‘s focus on innovative cultivation techniques and processing technologies enhances hemp yield and quality. Advanced extraction methods and genetic research improve product diversity, from textiles to biofuels. These innovations reduce costs and increase efficiency, making hemp more competitive against traditional crops. The government‘s support for research and development further accelerates technological progress, fostering a robust industry ecosystem. As a result, South Korea is positioned to become a leader in high-quality hemp products, attracting investments and expanding export opportunities.
• Economic Growth and Investment: South Korea‘s steady economic development encourages investment in new sectors like industrial hemp. The rising disposable income and consumer demand for natural, eco-friendly products boost market potential. Local and foreign investors are increasingly interested in hemp cultivation and processing facilities, driven by favorable economic policies and incentives. This influx of capital supports infrastructure development, job creation, and technological innovation, which collectively strengthen the industry. The economic momentum ensures a sustainable growth trajectory for the hemp market, aligning with national goals of a green economy and sustainable development.
• Regulatory Support and Policy Framework: The South Korean government has begun to relax certain regulations surrounding hemp cultivation, recognizing its economic and environmental benefits. Policies promoting research, cultivation licenses, and product standards create a more predictable environment for industry players. Regulatory clarity reduces risks associated with legal uncertainties, encouraging farmers and manufacturers to invest confidently. Additionally, international trade agreements and compliance standards open avenues for export. These supportive policies are crucial for scaling the industry and integrating South Korea into the global hemp market.
• Increasing Consumer Awareness and Demand: Growing awareness of the health benefits and environmental advantages of hemp products fuels consumer interest in South Korea. Consumers are seeking natural, sustainable alternatives in textiles, food, and wellness products. This shift in consumer preferences drives companies to develop innovative hemp-based offerings, expanding market reach. Educational campaigns and media coverage further enhance acceptance and demand. As awareness spreads, the market experiences increased sales and diversification, positioning hemp as a mainstream choice for eco-conscious consumers.
• Sustainable Development Initiatives: South Korea‘s commitment to sustainability and reducing carbon footprints aligns with the promotion of hemp cultivation. Hemp‘s ability to improve soil health, sequester carbon, and require fewer pesticides makes it an attractive crop. Government and private sector initiatives support organic farming practices and eco-friendly processing methods. These efforts contribute to environmental conservation and meet global sustainability standards, attracting environmentally conscious investors and consumers. The emphasis on sustainability enhances the industry‘s reputation and long-term viability, fostering a resilient market ecosystem.

The challenges in the industrial hemp market in South Korea are:
• Strict Regulatory Frameworks: Despite some relaxations, regulations governing hemp cultivation, processing, and product approval remain complex and restrictive. Licensing procedures can be lengthy and costly, discouraging new entrants. Strict THC content limits and testing requirements create operational hurdles, often leading to legal uncertainties. These regulatory barriers slow down industry growth, limit innovation, and restrict market entry for small and medium enterprises. Navigating the regulatory landscape requires significant expertise and resources, which can be a deterrent for emerging players.
• Social Stigma and Cultural Barriers: Hemp‘s association with cannabis and drug use creates social stigma in South Korea, impacting consumer acceptance and market development. Cultural perceptions hinder marketing efforts and restrict product diversification. This stigma affects policy support and investment, as stakeholders may fear negative public perception. Overcoming these societal barriers requires extensive education and awareness campaigns to differentiate industrial hemp from recreational cannabis, which can be time-consuming and costly.
• Supply Chain Limitations: The nascent state of the hemp supply chain in South Korea poses significant challenges. Limited local cultivation areas, lack of processing infrastructure, and inconsistent quality control hinder scalability. Dependence on imports for raw materials increases costs and supply risks. Developing a reliable, efficient supply chain requires substantial investment in farming techniques, processing facilities, and quality standards. Without a robust supply chain, market growth remains constrained, and product competitiveness is compromised.

In summary, the South Korean industrial hemp market is driven by technological innovation, economic growth, supportive policies, rising consumer awareness, and sustainability initiatives. However, regulatory complexities, social stigma, and supply chain issues present notable challenges. These factors collectively shape the market‘s trajectory, requiring strategic navigation by industry stakeholders. Addressing challenges while leveraging drivers can unlock significant growth opportunities, positioning South Korea as a key player in the global hemp industry.

List of Industrial Hemp Market in South Korea Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, industrial hemp companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the industrial hemp companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5

Industrial Hemp Market in South Korea by Segment

The study includes a forecast for the industrial hemp market in South Korea by type, source, and application.

Industrial Hemp Market in South Korea by Type [Analysis by Value from 2019 to 2031]:

• Hemp Seed
• Hemp Seed Oil
• CBD Hemp Oil
• Hemp Bast
• Hemp Hurd

Industrial Hemp Market in South Korea by Source [Analysis by Value from 2019 to 2031]:

• Conventional
• Organic

Industrial Hemp Market in South Korea by Application [Analysis by Value from 2019 to 2031]:

• Food & Beverages
• Textiles
• Pharmaceuticals
• Personal Care Products
• Animal Nutrition
• Paper
• Others

Features of the Industrial Hemp Market in South Korea

Market Size Estimates: Industrial hemp in South Korea market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Industrial hemp in South Korea market size by type, source, and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different type, source, and application for the industrial hemp in South Korea.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the industrial hemp in South Korea.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the industrial hemp market in South Korea?
Answer: The major drivers for this market are the rising legalization of industrial hemp cultivation, increasing use of hemp seed and hemp seed oil in food applications, and the growing incidence of chronic diseases.
Q2. What are the major segments for industrial hemp market in South Korea?
Answer: The future of the industrial hemp market in South Korea looks promising with opportunities in the food & beverage, textile, pharmaceutical, personal care product, animal nutrition, and paper markets.
Q3. Which industrial hemp market segment in South Korea will be the largest in future?
Answer: Lucintel forecasts that hemp seed will remain the largest segment over the forecast period due to high nutrition ratio.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the industrial hemp market in South Korea by type (hemp seed, hemp seed oil, CBD hemp oil, hemp bast, and hemp hurd), source (conventional and organic), and application (food & beverages, textiles, pharmaceuticals, personal care products, animal nutrition, paper, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Industrial Hemp Market in South Korea, Industrial Hemp Market in South Korea Size, Industrial Hemp Market in South Korea Growth, Industrial Hemp Market in South Korea Analysis, Industrial Hemp Market in South Korea Report, Industrial Hemp Market in South Korea Share, Industrial Hemp Market in South Korea Trends, Industrial Hemp Market in South Korea Forecast, Industrial Hemp Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.