Hemp Animal Feed Market Poised for Substantial Growth, Driven by Nutritional Benefits and Traceability Demand

The global hemp animal feed market is projected to grow from USD 657.3 million in 2025 to USD 927.2 million by 2035, according to a new analysis. This expansion, representing a compound annual growth rate (CAGR) of 3.5%, is fueled by increasing demand for sustainable and nutritious feed ingredients, particularly hemp seed meal, which currently dominates the market.

While the market remains a small fraction of the broader global feed industry, its growth trajectory highlights a significant shift towards alternative and functional ingredients. The analysis provides a comprehensive overview of the competitive landscape and key market dynamics shaping this emerging sector.

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Hemp Seed Meal Leads the Charge in a Diverse Market

Hemp seed meal, a high-protein byproduct of hemp oil extraction, is the leading segment with a 38% market share in 2025. Its popularity is driven by a rich nutritional profile, including high protein and essential fatty acids, making it a compelling alternative to traditional feedstuffs like soy and fish meal. This is particularly relevant in the ruminant and poultry sectors, which are seeking to improve feed efficiency and animal health.

“The growth we’re seeing in the hemp animal feed market is a direct reflection of a changing mindset among livestock producers and consumers,” said a market analyst. “Farmers are looking for cost-effective, nutrient-dense ingredients, and consumers are demanding greater traceability and non-GMO options. Hemp checks both boxes, positioning it as a key player in the future of animal nutrition.”

The report also identifies other critical segments shaping the market:

  • Ruminant consumption leads the way with a 32.8% market share, driven by hemp’s ability to improve gut health and enhance milk quality.
  • Protein enrichment is the top functional application, accounting for 41% of the market, with hemp’s complete amino acid profile proving valuable in growth-stage diets.
  • Pelletized feed holds a 29% market share, favored for its stability, long shelf life, and ease of use in large-scale commercial farming operations.
  • Direct-to-farm distribution is a dominant channel, representing 34% of sales, as producers seek greater control over their supply chain and customized feed solutions.

Competitive Landscape and Market Dynamics

The competitive landscape is defined by a mix of specialized processors and industry coalitions advocating for regulatory progress. The Hemp Feed Coalition is a critical force, driving legal approvals and establishing feed safety standards. Its recent efforts, including the landmark AAFCO approval of hemp seed meal for laying hens in August 2024, are paving the way for wider adoption.

Key players are strategically positioning themselves to meet rising demand:

  • Victory Hemp Foods (USA) is a leader in protein concentrate formulations for ruminant and poultry, leveraging its domestic processing capabilities.
  • Hemp Oil Canada (Fresh Hemp Foods Ltd.) focuses on compliant hempseed cake and oil, utilizing its extensive distribution network.
  • Blue Sky Hemp Ventures (Canada) is recognized for its whole-plant utilization and carbon-focused traceability models.
  • Z-Company (Netherlands) supplies organic-certified ingredients across the EU, catering to a strong demand for traceable and clean-label products.

Despite the positive growth outlook, the market faces significant challenges. Regulatory caution, particularly concerning THC thresholds and the use of CBD, remains a major hurdle. Supply chain inconsistencies and a lack of pelleting infrastructure for mass-market integration also pose structural barriers. As Norman Birenbaum, a Senior Public Health Advisor at the FDA’s Center for Drug Evaluation and Research, noted in September 2024, “early indications of liver toxicity” and “reproductive toxicity” in rat studies related to CBD are prompting mounting regulatory caution.

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Regional Highlights: India, Germany, and China Lead Accelerated Growth

While North America and Western Europe remain crucial markets, emerging economies are driving accelerated growth.

  • India is a standout, with a projected CAGR of 5.8%. The market is expanding rapidly due to new cultivation frameworks and the adoption of hempseed meal by dairy cooperatives.
  • Germany and the United Kingdom are also experiencing above-average growth, with CAGRs of 5.3% and 4.6%, respectively. This is largely driven by a strong emphasis on traceability and a desire to find regional protein substitutes.
  • China is forecast to grow at a 4.9% CAGR, with feed-grade hemp fiber gaining traction in its vast aquaculture sector.

As the industry navigates regulatory complexities and supply chain issues, the focus on nutritional advantages, traceability, and sustainability will be key to unlocking the market’s full potential. The market’s continued expansion signifies a broader trend toward a more resilient and responsible global food system.

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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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About the Author

Nikhil Kaitwade

Associate Vice President at Future Market Insights, Inc. has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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