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The cannabis industry has made major highlights over the last few years due to developments made in producing cannabinoid drugs. And as more U.S. States continue to embrace medical cannabis, analysts are already showing a great optimism going forward. Research reports already indicate that the U.S. medical cannabis market will grow at a CAGR of 13.6% between 2018 and 2022 to a value of $10 billion.

This growth will be boosted by the increasing number of startups that are investing in medical cannabis. In addition, recent cannabinoid drug approvals in the U.S. like GW Pharma’s (GWPH) Epidiolex are also expected to entice more players to join the market. Therefore, it is clear to see why most investors would be very optimistic about investing in medical cannabis in the coming years.

However, that is not the only segment of the cannabis industry that has shown promising prospects over the last few years. Industrial hemp, whose fiber has several industrial applications has been gaining traction in the market over the last couple of years. According to recent market research reports, the global industrial hemp market is expected to hit a market value of $10.6 billion by 2025.

This growth will be driven by major developments in the textile industry where hemp is expected to experience a CAGR of about 17%. Hemp fibers have a “strong, hypo-allergic, and UV light resistant characteristics,” and these are some of the many reasons why textile manufacturers have embraced them as an alternative raw material to common fibers.

Industrial hemp is also expected to benefit from the growing demand for the crop oil in personal hygiene products, which include soap, shampoo, body lotions, and hair care products. On the other hand, growth in North America will be driven by a rising demand in the automotive industry for manufacturing panels as an alternative to fiberglass.