Latest Industry Info

Latest Industry Information

Market Overview

The global industrial hemp market size grew from US $981 million in 2018 to US $3.6 billion in 2020, up by 267%.

Compound annual growth (CAGR) of 16.2% is forecast from 2021 to 2028. Growing demand for industrial hemp in food and beverage products for its dietary benefits is expected to drive the product demand.

The top exporters of hemp are Romania, Germany, United States, France, Netherlands.

Supply

Industrial hemp is one of the strongest naturally occurring fibres on the planet and is a natural replacement for timber, chemicals, steel, concrete and cotton. Hemp is also fireproof, non-toxic, sustainable, breathable, absorbent, and highly insulative, as well as containing nutritional qualities.

A hemp plant comprises the stalk and the flower. The stalk produces the structural materials of hurd and fibre, which are a key raw material in end product construction. The flower produces the seeds which may contain THC for medicinal and recreational utility but may also be used for essential oils and foods. Hemp differs from Cannabis in that it contains less than .3% THC.

Hemp is 3 x strength of cotton and stronger than steel and kevlar and more insultative and fireproof than timber or concrete.

Hemp is waterproof and acoustic damping.

Environment

Australia has an abundance of suitable land for growing industrial hemp in sub-tropical conditions such as Kununurra (WA), Katherine (NT), Toowoomba (QLD), Riverina (NSW) and North Western Victoria. The weather conditions of these areas are mild with minimal extremes such as humidity, frost and rainfall.

The ideal temperatures are 15-26 degrees Celsius and temperatures above 4%c and between 40-70% humidity.

Hemp crops require approximately 50% less water than cotton but more than traditional food crops, approximately 30-40cm rainfall per crop (600-700mm per annum).

Land

To date, the land utilised in Australia for industrial hemp production has been modest and small scale with operations typically of 100-400 Hectares in size.

The minimum industrial land size required for industrial hemp commercialisation is 1000 Hectares, with ideal access to a further 4000-9000 Hectares for scaling purposes.