U.S. Hemp Industry Rebounds as 2024 Production Soars 40%, Hitting $445 Million Amid Floral Boom and Outdoor Cultivation Gains

The U.S. hemp sector posted strong recovery numbers in 2024, with total production value climbing to $445 million—a remarkable 40% year-over-year growth—according to new data released by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS).

After several years of volatility and uncertainty, the hemp industry appears to be regaining momentum, fueled by increased consumer demand, booming interest in hemp-derived cannabinoids, and a dramatic rise in outdoor floral hemp cultivation.

USDA Report Highlights Rapid Expansion of Outdoor Hemp Farming as Industry Responds to Market Shifts

According to the NASS report, outdoor hemp cultivation—also termed “open field” growing—saw a massive resurgence in 2024. U.S. farmers planted 45,294 acres of hemp for all purposes, a 64% increase compared to 2023. This signals renewed optimism among growers, particularly in the floral hemp segment, which is used primarily for producing cannabidiol (CBD) and hemp-derived tetrahydrocannabinol (THC) products.

The surge in acreage translated into increased value, with outdoor hemp production rising 46% year-over-year, totaling $417 million. Floral hemp accounted for the lion’s share of this growth, suggesting a market pivot toward more lucrative cannabinoid-rich crops, especially as demand for hemp-derived THC beverages and extracts continues to rise.

Floral Hemp Leads Industry Comeback, with Outdoor Production Skyrocketing 159% and Reaching $386 Million in Value

Perhaps the most impressive recovery has been in outdoor-grown floral hemp, which experienced a 159% increase in production volume over 2023, reaching 20.8 million pounds. This category alone generated $386 million in value, up 43% from the previous year. The amount of land harvested for floral hemp grew 60% to 11,827 acres, while yields improved significantly to 1,757 pounds per acre, up from 1,088 pounds per acre last year.

The results reflect a shift in strategy among farmers, who are increasingly investing in high-value floral hemp crops in response to growing demand for cannabinoids and hemp-infused wellness and recreational products.

Hemp-Derived THC Drinks Fuel Market Demand as States Without Legal Marijuana Embrace Alternative Cannabinoid Products

One of the drivers behind this shift is the nationwide boom in hemp-derived THC beverages, particularly in states like Texas, where traditional marijuana remains illegal. These legal gray areas have created fertile ground for alternative cannabinoid products, attracting attention from both legacy hemp operators and mainstream cannabis companies.

As a result, more marijuana businesses are entering the hemp-derived beverage space, introducing THC seltzers, drinks, and edibles that comply with the federal 0.3% THC threshold—yet still offer psychoactive effects. This is helping fuel the expansion of hemp’s floral sector while allowing companies to tap into previously unreachable markets.

Grain and Fiber Hemp Post Modest Growth, Though Value Trails Behind Floral Segment

While floral hemp led the comeback, other categories like grain and fiber hemp experienced more measured growth.

Grain hemp production rose 10% to 3.41 million pounds, and harvested area increased 22%. However, average yields dropped from 779 to 702 pounds per acre, likely due to climatic factors or farming practices. The total value of grain hemp hit $2.62 million, up 13% from 2023.

Fiber hemp output increased by 23% to 60.4 million pounds, with an expanded harvest area. Despite this, yields fell to 3,205 pounds per acre, and the total value dipped 3% year-over-year to $11.2 million, suggesting ongoing market saturation or pricing pressures in the textile and industrial fiber sectors.

Hempseed Markets Show Mixed Signals: Output Declines While Value Spikes 482% Due to Price Fluctuations and Niche Demand

Hempseed production under outdoor conditions showed a curious trend. Though harvested acreage climbed 61% to 2,160 acres, total output dropped by 7% to 697,000 pounds. Despite the drop in yield, the value of hempseed surged to $16.9 million, a 482% increase from 2023.

This dramatic price shift could reflect increased demand for specific hempseed types, potential export interest, or fluctuations in oilseed and specialty markets. Such volatility highlights the dynamic nature of niche hemp product segments and their sensitivity to consumer trends.

Indoor Hemp Cultivation Sees Decline in Value Despite Modest Area Growth, Signaling Margin Pressure and Demand Shifts

Contrary to the outdoor success story, hemp grown under protection—such as in greenhouses, hoop houses, and controlled environments—had a mixed year in 2024.

The protected cultivation area expanded by 9% to 3.52 million square feet, yet the total value of indoor hemp production fell by 13% to $28.7 million. This decline may be due to rising input costs, market saturation in certain segments (such as smokable flower or boutique CBD products), and reduced demand for high-end or small-batch hemp goods.

Clones and transplants were hit particularly hard. Production fell 62% to 356,000 plants, and total value plunged nearly 50% to $446,000, indicating a sharp reduction in nursery operations or starter plant sales.

Protected Floral Hemp and Clones Contract Sharply, While Seed Production Indoors Sees Gains

Protected floral hemp suffered from declining yields and prices. Total indoor floral production dropped 35%, while the segment’s value declined 30% to $18 million, continuing a downward trend first noted in 2023.

However, indoor seed hemp bucked the trend, with production rising 91% to 2,364 pounds, and the value climbing 64% to $10.3 million. This suggests a growing niche for high-quality seed production under controlled conditions, possibly aimed at genetics, breeding programs, or export markets.

Hemp Industry Outlook: Strong Rebound Points to Growing Maturity, but Challenges Remain in Regulation and Pricing Stability

The MJBiz Factbook Q2 update, which delves deeper into these findings, suggests that the U.S. hemp industry is finally stabilizing after the turbulence that followed its 2018 federal legalization. Early years were marked by gold-rush enthusiasm, oversupply, price crashes, and regulatory confusion. But the 2024 rebound signals a maturing market that is finding its footing in diverse applications—from THC beverages to seed and fiber markets.

Still, challenges remain. Regulatory inconsistencies between states, legal ambiguities around hemp-derived THC, and ongoing oversupply in some sub-sectors continue to affect profitability. Additionally, international competition and evolving consumer preferences will shape the industry’s direction moving forward.

U.S. Hemp Industry Proves Resilient as Outdoor Floral Cultivation Drives Strong Recovery in 2024

With a 40% increase in total production value, a 159% rise in outdoor floral output, and growing demand for cannabinoid-rich hemp products, the U.S. hemp sector has staged a major comeback in 2024. The focus now turns to sustainability, smart regulation, and innovation to ensure long-term growth in this rapidly evolving industry.