Australia Hemp Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

Key Market Trends and Insights:

• The Australian Capital Territory dominated the Australia hemp market in 2024 and is projected to grow at a CAGR of 25.6% over the forecast period.
• By source, the organic segment is projected to witness a CAGR of 24.8% over the forecast period.
• By type, hemp seed oil is expected to register 25.4% CAGR over the forecast period due to wide uses in skincare, dietary supplements, and health foods.

Market Size & Forecast:

• Market Size in 2024: AUD 126.38 million
• Projected Market Size in 2034: AUD 985.51 million
• CAGR from 2025-2034: 22.80%
• Fastest-Growing Regional Market: Australian Capital Territory

One of the primary drivers for the Australia hemp market development is progressive legal reform. Continued government support through clearer licensing pathways and regulatory clarity has encouraged investment. With growing alignment between federal and state-level rules, more farmers and entrepreneurs feel confident entering the market. In February 2024, the New South Wales Government launched a Hemp Industry Taskforce with representatives from growers, industry associations and regulatory bodies removing barriers and laying out a growth roadmap for industrial hemp.

Australians are increasingly interested in wellness, biohacking, and functional foods, and hemp fits neatly into this trend. Hemp seeds, oil, and protein powders offer clean-label, plant-based nutrition. Consumers looking for anti-inflammatory, gut-friendly, and heart-healthy ingredients are turning to hemp as part of their daily routines. With the rise of personalized nutrition and “food as medicine” philosophies, hemp’s unique profile is being leveraged in product innovation. This growing wellness culture is fueling demand for both food and non-food hemp products like skincare and supplements.

Recent Developments

August 2025

Canopy Growth rolled out its Canadian‑grown 7ACRES brand in Australia, introducing two high‑THC sativa strains, namely Ultra Jack and Jack Frost, both in 10 g flower formats. This expands its medical cannabis line in Australia, supplementing Tweed and Spectrum Therapeutics offerings.

May 2025

Curaleaf International introduced a suite of medical cannabis offerings in Australia, partnering with local licenced wholesaler Canngea to distribute four cannabis flower strains initially. This move extends Curaleaf’s expertise in controlled cannabinoid supply chains and signals deeper entry into Australia’s medical hemp-derived market.

December 2024

The National Industrial Hemp Council (NIHC) joined the Asia International Hemp Federation (AIHF) at the 2024 Bangkok Expo, alongside Australia and other nations to boost global hemp collaboration and foster innovation. Australia's inclusion highlights its growing role in shaping sustainable, cross-border hemp industry standards.

March 2024

Hemp Foods Australia launched its first “beauty‑from‑within” vegan collagen supplement targeting hair, skin, and nails. The formula incorporates Hemp Gold® protein, bamboo silica, hyaluronic acid, and 82 % organic ingredients, aiming to fill a gap in plant‑based beauty nutrition.

Key Trends and Drivers

Increased Investment and Agribusiness Involvement

As the Australia hemp industry matures, there has been a marked increase in investment, from both venture capital and traditional agribusiness players. Major Australian agricultural regions are seeing hemp trials and cultivation expansion. In November 2023, AgriFutures Australia committed AUD 2.5 million over five years to fund research in hemp seed genetics, primary production, product innovation, and sustainability. This financial backing is helping develop better seed genetics, optimize supply chains, and scale production.

Rising Demand for Sustainable Products

Australian consumers are increasingly drawn to sustainable and eco-conscious products, and hemp fits this trend well due to its low water usage, fast growth, and soil-replenishing properties. Demand for eco-friendly textiles, biodegradable plastics, and natural skincare is rising sharply. Brands promoting hemp-based solutions are aligning with consumer values around climate change, waste reduction, and ethical production. In August 2023, Under Armour signed an AUD 9 million deal with Australian company Hemp Black for sustainable, carbon-treated hemp yarns, Cradle-to-Cradle certified.

Export Opportunities in the Asia-Pacific Region

The Australia hemp market outlook is impacted by proximity to major Asia-Pacific markets presents a unique export advantage. China, South Korea, and Japan are seeing rising demand for hemp products, particularly in health foods, textiles, and CBD wellness goods. Australia is perceived globally as a clean and high-quality producer, which enhances the appeal of its hemp exports. As per industry reports, in 2024, Australia exported about 89 tons of hemp tow, making it the second largest exporter in Asia‑Pacific in that category.

Technological Innovation in Processing and Manufacturing

Advancements in processing technology are streamlining the production of hemp into usable fibers, oils, proteins, and cannabinoids. Australian startups and research bodies are investing in decorticators, oil presses, and cannabinoid extraction units that improve efficiency and reduce waste. In November 2023, A new research program launched at Southern Cross University to advance Australia’s industrial hemp industry through innovation, sustainability, and collaboration. Innovation in vertical farming, seed breeding, and bio-refining also contribute to better crop outcomes and product quality.

Development of Local Supply Chains and Infrastructure

One of the biggest historical limitations in the Australia hemp market has been a lack of processing infrastructure. However, this is changing with new investments in decortication facilities, oil pressing plants, and cannabinoid extraction labs. As regional supply chains develop, farmers gain better access to processing, reducing transport costs and improving margins. Localized value chains also enhance product traceability, a growing concern among consumers.

Australia Hemp Market Share

Organic Hemp to Gain Preference in Australia

Organic hemp demand in Australia is rapidly growing due to increasing consumer demand for clean, chemical-free products. In March 2024, Hemp Foods Australia expanded its plant-based range with the introduction of a plant-based collagen product, made with 82% organic ingredients Certified organic hemp must meet strict environmental and farming standards, making it costlier and less accessible for many growers. The segment is gaining momentum, particularly among niche markets focused on sustainability, wellness, and high-value exports.

Rising Hemp Seeds and Fiber Demand in Australia

Hemp seed is the most dominant segment, primarily due to its acceptance as a nutritious food source since its legalization. Companies have capitalized on rising health trends, distributing hemp seed products across major supermarkets and health stores. In September 2022, Hemp Foods Australia introduced a “Functional Seed Mix” range that combines hemp seeds with other nuts, fruits or seeds. The strong consumer shift toward plant-based diets and functional foods further boosts demand.

Hemp fiber is vital for the growth of the Australia hemp market due to limited processing infrastructure and lower domestic demand. Used in textiles, bioplastics, paper, and construction, fiber hemp requires specialized equipment and large-scale farming. While companies are promoting hempcrete for sustainable building, uptake remains slow compared to food-grade hemp. The high cost of production and lack of established supply chains make it challenging to scale.

Surging Hemp Demand in Personal Care & Cosmetics and Textiles in Australia

The personal care and cosmetics segment is rapidly expanding, driven by demand for natural, plant-based skincare. Hemp seed oil is prized for its moisturizing, anti-inflammatory, and antioxidant properties. Australian brands offer hemp-infused soaps, serums, and balms marketed as eco-friendly and suitable for sensitive skin. In March 2024, Hemp Co Australia introduced their Hemp Soap Bars, available in Lemongrass, Lavender, and Unscented variants.

Hemp textiles are an environmentally promising segment in the Australia hemp industry, given their breathability, and sustainability in fashion and industrial fabrics. Brands have introduced hemp clothing, towels, and home furnishings, targeting eco-conscious consumers. While international demand grows, domestic textile manufacturing is underdeveloped, making this segment less dominant in terms of both volume and economic impact.

Australia Hemp Market Regional Analysis

New South Wales & Australian Capital Territory to Record High Hemp Usage

New South Wales (NSW) leads the market by area planted, regulatory support, and momentum. NSW is home to 1,200 hectares of land dedicated to hemp cultivation, more than every other Australian state combined. It also established a Hemp Industry Taskforce and is drafting a Hemp Industry Development Plan to streamline licensing, improve supply chains and boost production. This proactive approach has attracted significant investment and encouraged innovation in hemp-based products.

The Australian Capital Territory (ACT) has a strong presence in the Australia hemp market. The region benefits from progressive policies that encourage hemp research and development, particularly in sustainable agriculture and health products. Additionally, ACT’s proximity to federal agencies and research institutions enables close collaboration on regulatory frameworks and market expansion strategies, helping to position the territory as a growing hub for hemp industry advancements.

Competitive Landscape

Key industry players are working on innovation, sustainability, and diversification. Companies are heavily investing in research and development to create value-added products such as hemp-based foods, textiles, bioplastics, and wellness products like CBD oils. Emphasizing sustainability, many firms promote eco-friendly farming practices and highlight the environmental benefits of hemp, appealing to environmentally conscious consumers. Strategic partnerships and collaborations with farmers, research institutions, and international distributors help ensure supply chain stability and facilitate market expansion.

Australia hemp companies also focus on securing organic and GMP certifications to meet domestic and international regulatory standards, boosting credibility and export potential. Brand positioning is another crucial strategy, with companies leveraging storytelling and transparency to build consumer trust. Digital marketing and e-commerce platforms are widely used to reach niche markets and educate consumers on hemp’s benefits. As the regulatory landscape evolves, firms actively engage with policymakers to shape favorable regulations.

Hemp Farms Australia

Founded in 2013, Hemp Farms Australia is headquartered in Brisbane, Queensland. The company is a leader in hemp genetics, holding exclusive access to over 60% of DPI-registered hemp seed varieties. It is pioneering industrial applications including hempcrete, phytoremediation, and biochar, tailored for Australia's challenging agricultural conditions.

Australian Primary Hemp

Founded in 2016, Australian Primary Hemp is based in Geelong, Victoria. The company operates a vertically integrated model from seed to shelf. It has received awards for innovation in paddock-to-plate production and developed Australia's largest hemp de-hulling facility. Its product range includes hemp foods, oils, and bulk ingredients.

Good Country Hemp

Founded in 2018, Good Country Hemp is headquartered in Bordertown, South Australia. This family-owned business produces premium hemp foods using locally grown, non-GMO crops. It built South Australia's first food-grade hemp processing plant and is committed to traceability, low food miles, and carbon-conscious production practices.

Connoils by Kraft

Founded in 2007, Connoils is headquartered in Wisconsin, United States. While not based in Australia, it is a global leader in hemp oil and powder manufacturing. The company specializes in custom oil formulations and offers hemp-based nutraceuticals, leveraging cold-press extraction and strict GMP standards for purity and consistency.

Other players in the Australia hemp market are Australian Hemp Masonry Company, Broadleaf Hemp, OzHemp Pty Ltd and others.

Key Features of the Australia Hemp Market Report:

• Comprehensive quantitative analysis of market size, growth, and forecast to 2034.
• Segmentation by source, type, application, and region for detailed insights.
• Evaluation of regulatory landscape and its impact on market dynamics.
• Competitive landscape with profiles of leading Australian hemp brands.
• Identification of emerging trends, innovations, and investment opportunities.
• Market share analysis by state and product segments for strategic planning.

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