Global Hempcrete Market Grows Steadily at a CAGR of 4.95%

Introduction

The global hempcrete market is experiencing significant growth, driven by several key factors. A primary catalyst is the rising preference for sustainable and energy-efficient construction materials, as hempcrete provides superior thermal insulation, lowering the need for artificial heating and cooling. At the same time, the legalization of industrial hemp cultivation in regions such as the U.S., Canada, and parts of Europe has strengthened the hemp supply chain, leading to improved material availability and lower production costs.

Moreover, the growing focus on low-carbon construction practices is encouraging architects and developers to adopt eco-friendly alternatives like hempcrete. Its biodegradable and non-toxic properties make it an attractive option for environmentally conscious consumers and builders seeking to comply with strict green building standards. Together, these trends are fueling the use of hempcrete in both residential and commercial projects across various global markets.

Market Dynamics

Environmental benefits drive the global market

Hempcrete's environmental benefits are a key factor behind its rising global popularity. As the construction industry searches for sustainable alternatives to high-emission materials, hempcrete emerges as a green, biodegradable, non-toxic, and energy-efficient option. It delivers strong thermal insulation, helping to stabilize indoor temperatures and decrease the need for HVAC systems, ultimately reducing overall energy use. Additionally, hempcrete contributes to carbon sequestration over its entire lifecycle, making it one of the most carbon-negative building materials currently available.

• For example, a 2025 study conducted by the Institute of Technology and Life Sciences in Poland compared two piggery structures. The building made with hempcrete showed a carbon footprint of –43,736 kg CO₂ equivalent, while the conventional structure recorded +22,537 kg CO₂, highlighting hempcrete’s impressive carbon absorption capabilities.

These findings underscore hempcrete’s potential to support the construction sector in meeting sustainability targets and progressing toward global net-zero emission goals.

Regulatory push creates tremendous opportunities

The global market is witnessing substantial growth opportunities driven by stricter environmental regulations in the construction sector. Governments around the world are implementing carbon reduction targets and updating building codes to promote the use of sustainable, carbon-sequestering materials such as hempcrete. These policy shifts are accelerating innovation in green construction and paving the way for broader adoption of hemp-based materials.

• For example, Denmark became the first Nordic country in early 2025 to mandate lifecycle carbon assessments for new buildings, setting a limit of 12 kg CO₂/m²/year for structures larger than 1,000 m², with the requirement extending to smaller buildings by mid-2025. Likewise, Finland's revised Building Act, effective from 2024, includes plans to introduce national CO₂ limits for new construction by 2025, supported by a comprehensive carbon data system modeled after France’s INIES.

Such regulatory initiatives are driving the construction industry toward natural, low-emission solutions like hempcrete.

Regional Analysis

In North America, the hempcrete market is gaining traction owing to the surging environmental awareness and supportive regulatory frameworks. The U.S. Department of Agriculture’s approval of industrial hemp cultivation through the 2018 Farm Bill has significantly boosted the hemp supply, supporting hempcrete production. Additionally, cities like Austin, Texas, and Portland, Oregon, are promoting green building materials through tax incentives and sustainability codes. In Canada, the construction of residential projects such as the "Just BioFiber" hempcrete homes in Alberta showcases real-world adoption.

Furthermore, rising interest in carbon-neutral building practices among eco-conscious homeowners and architects is accelerating demand. Organizations like the U.S. Hemp Building Association are actively lobbying for hempcrete’s inclusion in national building codes, which would further streamline its commercial use. With a growing push toward net-zero construction, North America is emerging as a promising region for global market growth.

Key Highlights

• The global hempcrete market size was valued at USD 25.32 billion in 2024 and is projected to grow from USD 26.57 billion in 2025 to reach USD 39.11 billion by 2033, growing at a CAGR of 4.95% during the forecast period (2025–2033).
• By product form, the global hempcrete market is segmented into blocks and panels, loose fill (cast-in-place), and spray applied hempcrete.
• By application, the market is categorized into walls, roofs, and flooring. The walls segment held the largest market share.
• By end-user, the market is divided into residential, commercial, and others. The residential segment dominated the market.
• North America is the highest shareholder in the global market.

Competitive Players

1. Hempcrete Direct
2. IsoHemp
3. Hempire Building Materials
4. JustBioFiber Structural Solutions
5. Hempitecture Inc.
6. American Lime Technology
7. UK Hempcrete
8. BioComposites Group
9. Afrimat Hemp
10. Old Mill Brick

Recent Developments

• In May 2025, Hempitecture Inc. launched a fire-resistant hempcrete solution designed for wildfire-prone areas, enhancing safety in sustainable construction. The company also introduced two innovative plant-based insulation products, FiberFill and FiberPad, aimed at improving energy efficiency and eco-friendliness in building projects, marking a significant advancement in green building materials and resilience-focused infrastructure.

Segmentation

1. By Product Form
   1. Blocks & Panels
   2. Loose Fill (Cast-in-Place)
   3. Spray Applied Hempcrete
2. By Application
   1. Walls
   2. Roofs
   3. Flooring
3. By End-User
   1. Residential
   2. Commercial
   3. Others
4. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa