NIHC 2025 Year in Review Infrastructure, Exports, and Growing Demand in the U.S. Industrial Hemp Industry
NIHCOA.COM NIHC 2025 Year in Review
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“Hemp is not just another crop. It is a strategic material that supports rural economies, strengthens supply chains, and advances U.S. competitiveness in the global marketplace.”
PATRICK ATAGI
NIHC 2025 Year in Review Building the Future of America’s Industrial Hemp Industry LETTER FROM THE PRESIDENT & CEO PATRICK ATAGI 2025 proved what we’ve always believed: when leadership, science, and collaboration come together, America’s industrial hemp industry moves from promise to performance. This past year, the NIHC advanced global market access, strengthened U.S. supply-chain infrastructure, set higher standards for quality and testing, and solidified our role as the national leader advocating for a modern, science-driven regulatory framework. Hemp is not just another crop. It is a strategic material that supports rural economies, strengthens supply chains, and advances U.S. competitiveness in the global marketplace. As a USDA cooperator, NIHC is uniquely positioned to represent America’s hemp producers and manufacturers on the world stage through trade missions, export development, and international partnerships. We began 2025 with a clear mission: build markets, build standards, build credibility, and build confidence. By year’s end, we had delivered results and positioned the United States to lead the global industrial hemp economy. Thank you to our members, partners, USDA staff and leadership, and global allies. Together, we are shaping the future of American hemp.
PATRICK ATAGI President & CEO, NIHC
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The State of the U.S. Industrial Hemp Industry A Sector Stabilizing — and Poised for Growth The industrial hemp sector enters 2026 at a pivotal point. After several years of volatility, the market is showing clear signs of stabilization and renewed growth in fiber, grain, seed, feed, and industrial applications. According to the U.S. Department of Agriculture’s National Agricultural Statistics Service (USDA NASS): •
U.S. industrial hemp production reached $445 million in 2024, a strong recovery and a 40% yearover-year increase.
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Hemp was planted on more than 45,000 acres nationwide, reflecting improved market confidence.
Globally, demand for natural fibers, bio-based materials, and low-carbon construction inputs is rising sharply. Industry forecasts from Fortune Business Insights and Grand View Research estimate the industrial hemp market will reach $18–20 billion by 2030, with strong growth in textiles, biocomposites, packaging, and regenerative construction. U.S. hemp exports are positioned to rise significantly in 2026, driven by buyer interest in Guatemala, Peru, Kenya, Thailand, and Japan. Based on NIHC’s USDA MAP/RAPP engagement patterns, export demand could triple or quadruple as processing capacity expands. Processing infrastructure is expected to double by 2027, creating new opportunities for blending, composite manufacturing, insulation, and other value-added products. The United States is well positioned to capture a meaningful share of this global market, but only with continued investment in infrastructure, standards, testing integrity, and regulatory clarity. In 2025, NIHC led the nation in every one of these areas.
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Global Reach: NIHC as America’s Hemp Ambassador In 2025, NIHC advanced U.S. hemp worldwide through trade missions, export development, diplomatic engagement, and industry partnerships supported by the USDA Market Access Program (MAP) and Regional Agricultural Promotion Program (RAPP). NIHC represented U.S. hemp in ten countries across five continents, strengthening relationships with government leaders, buyers, manufacturers, and global research institutions. Highlights include: AFRICA NIHC sponsored and attended the Kenya Hemp Conference in Nairobi, engaging with regulators, agricultural leaders, and the Office of the President to advance opportunities for hemp in feed, fiber, and bioplastics. NIHC leadership also met with the Acting President of Zimbabwe to discuss U.S.– Africa cooperation. LATIN AMERICA During USDA’s Agribusiness Trade Mission to Guatemala, NIHC secured the first confirmed export of U.S. hemp fiber to a Central American textile manufacturer. In Peru, NIHC members conducted the first spinning trials combining American hemp with Peruvian Pima cotton — demonstrating hemp’s viability in high-end textile blends. ASIA NIHC representatives attended the Asia International Hemp Expo & Forum (Bangkok, Thailand), the Japan International Hemp Expo (Tokyo), and the USDA Trade mission to Taiwan. These events showcased U.S. innovation in sustainable fibers, quality assurance, and testing transparency and strengthened ties across Asia’s rapidly growing hemp sector. EUROPE NIHC deepened relationships across Europe through engagement at France’s Colloquium of Natural Fibers and Polymers, Amsterdam’s Kingpins Denim Show (Netherlands), and the European Industrial Hemp Conference in Berlin, Germany. All of these events leveraged the $1.25 million in new USDA RAPP funding received in December 2024, reaffirming the federal government’s trust in NIHC as the leading U.S. industrial hemp export development organization.
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Building U.S. Infrastructure: The NIHC Global Industrial Hemp Fiber Summit Infrastructure is the backbone of a mature hemp economy. In July 2025, NIHC helped to convene nearly 200 leaders at the first-ever Global Industrial Hemp Fiber Summit, hosted at NC State University’s Wilson College of Textiles. Participants included growers, processors, technical experts, academics, brands, manufacturers, and U.S. and international policymakers. Over three days, delegates toured NC State’s research fields, visited Biophil Natural Fibers’ decortication facility, and engaged in technical workshops on quality, standards, supply-chain logistics, and textile innovation. The Summit provided: •
A shared roadmap for U.S. fiber processing capacity
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A clearer understanding of market requirements for global buyers
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Momentum toward nationally recognized standards and specifications
As Patrick Atagi stated: “When we bring the right people together — farmers, scientists, business leaders, and policymakers, we create the conditions for real growth.” The Summit was a turning point in the development of America’s fiber supply chain — and a direct reflection of NIHC’s commitment to convene thought leaders from across the industry.
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Policy Leadership: Advancing Fit for Purpose Smart, science-based regulation is essential for industrial hemp to realize its potential. NIHC continued to lead the national conversation through its Fit for Purpose framework. Designed as a regulatory model that distinguishes industrial hemp (fiber, grain, seed, feed, and materials) from cannabinoid products and reduces unnecessary compliance burdens. In 2025, NIHC: •
Engaged directly with senior USDA leadership
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Worked with congressional champions, including Kentucky Senators Mitch McConnell and Rand Paul, and Rep. James Comer
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Provided technical insights during Farm Bill discussion, and
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Ensured hemp remained central to agricultural policy discussions
NIHC continues to serve as the leading policy voice representing industrial hemp at the federal level.
“We look forward to continued collaboration toward a workable solution for the entire industry, building on the years-long effort behind the Fit for Purpose Platform. By uniting under a shared vision, we can strengthen our voice in Washington, open new markets, and build confidence across the supply chain.”
PATRICK ATAGI
President & CEO, NIHC
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American Association for Laboratory Accreditation
Raising Standards: NIHC Verify In 2025, NIHC significantly strengthened the technical backbone of the U.S. hemp industry by deepening its partnership with A2LA under the joint A2LA–NIHC Verify Hemp Recognition Program. This collaboration marks a major milestone. Testing laboratories that meet A2LA’s globally recognized ISO/IEC 17025 standard can now qualify for NIHC Verify accreditation, setting a consistent, sciencebased benchmark for hemp product testing nationwide. Under the joint program, accredited labs commit to rigorous testing protocols: pesticide and heavy metal screening, potency analysis, microbiology, residual solvent tests, and more to ensure that hemp products meet high standards of safety and transparency before they reach manufacturers, exporters, or consumers. One 2025 case study, ACT LAB, illustrates how this works in practice. ACT LAB, one of the largest multi-state hemp testing laboratories in the U.S., earned full ISO/IEC 17025 accreditation from A2LA and joined NIHC Verify. According to ACT LAB’s Quality Director, the accreditation dramatically elevated the lab’s internal quality management: instrument calibration, method validation, staff competency assessment, and data review processes are now standardized and far more robust. That consistency and traceability, “scientifically defensible and traceable,” as she described it, is precisely what the hemp industry needs to build long-term credibility and consumer confidence. Beyond lab accreditation, 2025 also saw the adoption of a new measurement benchmark for hemp testing: the reference material (RM) recently released by the National Institute of Standards and Technology (NIST). This RM provides an impartial, scientifically calibrated standard sample that laboratories can use to validate methods for measuring key hemp compounds (cannabinoids, heavy metals, residual solvents, etc.). Using common RM helps synchronize testing accuracy and reproducibility across laboratories, minimizing the risk of inaccurate results, which for hemp could mean unnecessary crop losses due to false positives on THC content, or unsafe products reaching consumers. NIHC publicly welcomed the NIST RM, declaring it an essential tool for aligning hemp testing with internationally recognized scientific standards and promoting reliability across the supply chain. Taken together, the A2LA/NIHC Verify accreditation, the inclusion of NIST reference materials, and the growing number of accredited labs like ACT LAB, mark 2025 as the year the U.S. hemp industry moved decisively toward science-based testing and compliance infrastructure. Without consistent, transparent, and reliable testing, hemp can never achieve true commoditylevel legitimacy. With the A2LA/NIHC framework, U.S. hemp now has the foundation it needs to compete globally with traceable, defensible lab results, export-ready certification, and a path toward regulatory and market acceptance worldwide.
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Looking Ahead: NIHC’s Roadmap for 2026 U.S. hemp exports are positioned to rise significantly in 2026, driven by buyer interest in Guatemala, Peru, Kenya, Thailand, and Japan. Based on NIHC’s USDA MAP/RAPP engagement patterns, export demand could triple or quadruple as processing capacity expands. With global demand rising and domestic capacity strengthening, 2026 could be the year U.S. hemp transitions from an emerging industry to a fully recognized industrial commodity, with NIHC leading policy, standards, and global trade. However, regulatory inconsistency and testing variability remain obstacles. NIHC’s A2LA/NIHC Verify accreditation program and Fit for Purpose framework are designed to provide the clarity and consistency needed to unlock investment and scale. As the leading industrial hemp organization in the United States, NIHC will work to: •
Expand international markets under USDA MAP & RAPP
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Advance Fit for Purpose
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Launch the NIHC Compliance Platform
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Grow NIHC Verify and expand laboratory accreditation
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Support investment in domestic decortication and processing infrastructure
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Deepen global partnerships through international alliances
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Continue delivering measurable export outcomes for American producers
Through strategy, science, and collaboration, NIHC is ensuring the United States is not merely participating in the global hemp economy—We’re shaping it.
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