Industrial hemp in Australia and New Zealand is entering a more coordinated stage of development, with clearer demand signals from construction, fiber and food, along with growing pressure for regulatory alignment and more processing capacity.
A new report from the Australian Hemp Council (AHC) and the New Zealand Hemp Industries Association (NZHIA) outlines how both countries are approaching a pivotal phase.
"The foundations are there, and the momentum is real, but the sector needs coordinated development to achieve meaningful commercial scale," said Bernard Thomson, Executive Officer of the AHC.
Australia: Strong demand, thin processing, uneven rules
In Australia, survey responses show a sector ready to scale but held back by fragmented regulation and limited processing. More than 60% of respondents identified hemp building materials as the strongest market interest, and over half expect steady growth in the next three to five years. The most urgent infrastructure need is decortication and fibre processing, followed by drying and storage.
Researchers at La Trobe University, which recently published a study on modular hempcrete technology, said the sector is showing clear readiness for expansion, especially in hempcrete and other low-carbon construction materials.
"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," said Dr Ernesto Valenzuela, Senior Lecturer in Agricultural Economics.
Dr Julio Mancuso Tradenta, Senior Lecturer in Economics at La Trobe Business School, added that progress now depends on coordinated action from governments, researchers and industry to build standards, infrastructure and integrated supply chains for domestic production at scale.
New Zealand: Value-first, policy-limited
Survey indicators from New Zealand show a sector focused on value but constrained by inconsistent rules. Nearly half of respondents said licensing complexity or delays create the biggest regulatory barrier, while more than one-third pointed to product-classification issues. These concerns reflect long-standing limits on full-plant utilization.
"We're seeing a shift from aspiration to practical development, particularly in fibre, building systems and regional processing," said Richard Barge, Chair of NZHIA. While interest is strong, operators say clearer policy and proof of demand are needed to support more investment.
A regional industry taking coherent shape
Across both markets, a shared challenge is becoming clear: scaling depends on predictable regulation, reliable processing and consistent product specifications.
"This report validates a critical inflection point for our region," said Guy Wills, CEO of natural-materials maker Rubisco and author of the report's foreword. "Global industries are seeking high-performance natural materials, and Australasia is well-positioned to supply them."
He added that with aligned rules, consistent quality and the right processing capacity, the region can lead in natural-fibre innovation.
For more information:
Australian Hemp Council
australianhempcouncil.org.au/
New Zealand Hemp Industries Association
nzhia.com/
