The Australian Hemp Council (AHC) and the New Zealand Hemp Industries Association (NZHIA) recently published a report on the state of industrial hemp in the two countries, a
“The foundations are there, and the momentum is real, but the sector needs coordinated development to achieve meaningful commercial scale,” stated Bernard Thomson, Executive Officer of the AHC, in the press release.
As an October news release from NZHIA explains,
The State of Australia’s Hemp Market
The development of the industrial hemp industry in Australia is facing challenges from regulations and a processing capacity, according to survey results in the report. Over 60% of the respondents indicated that hemp building materials have the strongest market interest, with moderate growth in the next three to five years expected by more than half of those respondents.
Hempcrete technology is ready for expansion, researchers noted. “With agronomy and carbon benefits well established, the priority is validating standards and national consistency to drive regional manufacturing and deliver real economic and environmental returns,” explained Ernesto Valenzuela, Senior Lecturer in Agricultural Economics at La Trobe University in Australia.
Decortication and fiber processing, as well as drying and storage, were considered the areas most in need of infrastructure.
“Progress now depends on coordinated action from governments, researchers and industry to develop standards, infrastructure and integrated supply chains for domestic production at scale,” added Julio Mancuso Tradenta, Senior Lecturer in Economics at La Trobe Business School.
Earlier this year, Valenzuela and Mancuso Tradenta published the report
Updates in New Zealand’s Hemp Market
In comparison, the hemp market in New Zealand is focused on value and facing challenges from uneven rules. Licensing complexity or delays were the biggest contributor to regulatory barriers, according to survey results, as well as issues with product classification.
“We’re seeing a shift from aspiration to practical development, particularly in fiber, building systems and regional processing,” explained Richard Barge, Chair of NZHIA.
Investment would be generated by clearer government policy and proven interest, operators stated.
The Future of Hemp Markets in the Countries
Overall, future growth of the markets depends on “predictable regulation, reliable processing capacity and consistent product specifications,” the press release explains.
“This report validates a critical inflection point for our region,” explained Guy Wills, author of the report’s foreword and CEO of natural-materials maker Rubisco, one of the report’s sponsors. “Global industries are seeking high-performance natural materials, and Australasia is well-positioned to supply them. We’re now seeing the early shape of a true industrial ecosystem for hemp. With aligned regulation, consistent quality and the right processing capacity, our region can lead in natural-fiber innovation.”
References
- Australian Hemp Council. PRESS RELEASE: New report finds industrial hemp in Australia and New Zealand approaching a coordinated growth phase. December 9, 2025.
https://getthewordout.com.au/press-release/press-release-new-report-finds-industrial-hemp-in-australia-and-new-zealand-approaching-a-coordinated-growth-phase/ (Accessed 2025-12-11). - New Zealand Hemp Industries Association. Help Shape the Future of Hemp and Showcase Your Brand with Hemp Today. October 1, 2025.
https://nzhia.com/article-update/help-shape-the-future-of-hemp-and-showcase-your-brand-with-hemp-today/ (Accessed 2025-12-11). - Mancuso Tradenta, J.; Valenzuela, E. Building Australia’s Future: Industry Perspectives on Hempcrete Panels for Sustainable and Affordable Homes. La Trobe Institute of Sustainable Agriculture and Food (LISAF), La Trobe University. 2025.
https://wri.au/wp-content/uploads/2025/09/Affordable-Carbon-Housing.pdf (Accessed 2025-12-11).
