The industrial hemp market is far from being a new thing. To highlight that point, consider that archaeologists have discovered pieces of woven hemp fabric from ancient Mesopotamia in what is modern-day Iraq and Iran that date back to 8,000 BCE.
Hemp can be used to make many different things, including textiles, medicine, and food products. In modern times, the emerging legal medical and adult-use cannabis industries get a lot of attention, and understandably so, but the industrial hemp industry possesses considerable value as well.
According to a recent market analysis by Reports and Data, “The Oceania Industrial Hemp Market is projected to grow steadily from USD 75 million in 2024 to USD 130 million by 2034, at a compound annual growth rate (CAGR) of 5.60%.”
“This growth is fueled by increasing demand for sustainable materials, rising consumer awareness of health benefits, and strong government support across the region.” the market analysts stated in a press release.
“Australia currently leads the market in both revenue and production, while New Zealand is the fastest-growing market, driven by favorable policies and expanding cultivation. Key applications of industrial hemp include biodegradable plastics, eco-friendly textiles, food and beverages, pharmaceuticals, and personal care products.” the market analysts also wrote.
Below are other key findings from Reports and Data’s Oceania industrial hemp market analysis:
- The market was estimated to produce around 12,000 tons of hemp in 2024, growing to approximately 20,000 tons by 2034
- More companies are now adopting AI-based pricing systems to respond to market changes, which has helped improve margins by nearly 2% in some cases
- Hemp seeds currently lead the market, valued at USD 30 million in 2024 and expected to reach USD 55 million by 2034
- The food and beverages subsector is the fastest-growing application
At the recent International Cannabis Business Conference in Berlin, leading international cannabis economist Beau Whitney, founder of Whitney Economics, gave a keynote presentation during which he examined a multitude of important industry data points.
As part of his presentation, Beau Whitney compared the market potential of industrial hemp to the market potential for the medical and adult-use cannabis consumables sectors. Mr. Whitney listed several major industries that currently rely on industrial hemp as a source material, or that may in the future, including the automotive industry, textiles, building materials, batteries, shopping bags, cutlery equipment, health supplements, skin care, energy drinks, and animal feed.
Industrial hemp can also be used for many other purposes, including such things as bioremediation efforts. However, relying on just the previously mentioned large industries and combining hemp’s potential industry share of each of them, Mr. Whitney projected that the value of the global industrial hemp industry could be $456.2 billion.
As you can see, Beau Whitney’s estimate for the potential global medical and adult-use cannabis market is roughly $237.8 billion, and the global market potential for industrial hemp is about 192% greater by comparison.