Hemp Industry Report Highlights Growth Opportunities and Challenges in Australia and New Zealand

The Australian Hemp Council (AHC) and the New Zealand Hemp Industries Association (NZHIA) have unveiled a comprehensive report detailing both the potential and hurdles facing the industrial hemp sector in their respective countries. Released on December 9, 2025, the Australia & New Zealand Industrial Hemp Report draws support from international organizations, underscoring the global interest in the region's hemp industry. The report identifies key growth sectors such as construction, fiber, and food, while also pointing out regulatory and infrastructure challenges

Bernard Thomson, Executive Officer of the AHC, emphasized the need for coordinated development to scale the industry commercially. "The foundations are there, and the momentum is real," he stated, highlighting the sector's readiness for expansion. The report is part of a broader effort to showcase the industry on a global stage, as explained in an October release from NZHIA. It includes insights from various stakeholders, including growers, processors, and investors, who participated in a detailed survey

The survey results indicate that over 60% of respondents see hemp building materials as having the strongest market interest. This is supported by expectations of moderate growth over the next three to five years. Ernesto Valenzuela, a Senior Lecturer in Agricultural Economics at La Trobe University, noted the readiness of hempcrete technology for expansion, emphasizing the need for standardization and national consistency to maximize economic and environmental benefits

Infrastructure, particularly in decortication, fiber processing, and storage, is highlighted as a critical area needing development. Julio Mancuso Tradenta, another academic from La Trobe Business School, pointed out that progress hinges on coordinated efforts among governments, researchers, and industry players to establish standards and integrated supply chains. Earlier reports by Valenzuela and Tradenta have already detailed the transformative potential of hempcrete panels in sustainable construction

In New Zealand, the hemp industry faces its own set of challenges, primarily regulatory complexities and licensing delays. Richard Barge, Chair of NZHIA, remarked on the industry's shift from aspiration to practical development, especially in fiber and regional processing. The future growth of the hemp market in both countries, according to the report, will depend on predictable regulations, reliable processing capacity, and consistent product specifications. Guy Wills, CEO of Rubisco and author of the report's foreword, sees this as a pivotal moment for the region, with Australasia poised to lead in natural-fiber innovation