Hempcrete Market Growth, Global Report, Share & Forecast 2032

The global hempcrete market was valued at USD 804.8 million in 2024 and is projected to increase from USD 910.1 million in 2025 to USD 2,183.3 million by 2032, registering a strong CAGR of 13.3% during 2025–2032. Europe led the market in 2024, accounting for a 38.13% share of the global revenue.

As global attention increasingly shifts toward reducing carbon emissions and promoting sustainable building materials, hempcrete market has emerged as one of the most promising eco-friendly alternatives to conventional concrete. The hempcrete market is gaining rapid traction worldwide, driven by its excellent insulation properties, environmental benefits, and suitability for modern green architecture.

List Of Key Hempcrete Companies Profiled

Australian Hemp Masonry Company (Australia)
Sativa Building Products (U.S.)
IsoHemp (Belgium)
Hempitecture (U.S.)
Hemp Homes Australia (Australia)
Carmeuse Group (Belgium)
Rare Earth Global (U.K.)
UK Hempcrete (U.K.)

Benefits of Hempcrete Market

Hempcrete market is a bio-composite material made from the woody core of the hemp plant—known as hemp hurds—combined with a lime-based binder and water. The result is a lightweight, breathable, and highly insulative material used for wall infill, insulation, and flooring. Unlike traditional concrete, hempcrete is carbon-negative, meaning it absorbs more carbon dioxide during its life cycle than it emits during production.

Hempcrete’s market benefits include:

Excellent insulation – providing natural thermal and acoustic balance.
Moisture regulation – maintaining stable humidity levels and reducing mold risk.
Fire and pest resistance – offering durability and long-term stability.
Lightweight structure – reducing load on building frameworks.

However, it is important to note that hempcrete market is not load-bearing and must be used alongside a structural framework made of timber, steel, or reinforced concrete.

Market Drivers and Opportunities

Rising Demand for Sustainable Building Materials

Growing awareness about environmental impact, climate change, and energy efficiency has led to a surge in the use of renewable and eco-friendly materials. Builders, developers, and consumers are increasingly adopting hempcrete market to reduce the carbon footprint of construction projects while improving indoor air quality and energy performance.

Supportive Regulations and Green Building Initiatives

Governments worldwide are promoting green building certifications and carbon reduction policies. In Europe, initiatives such as LEED and BREEAM certification standards are encouraging the use of sustainable materials like hempcrete market. Additionally, relaxed regulations surrounding industrial hemp cultivation in countries such as the U.S. and Canada have strengthened raw material supply chains, fueling market expansion.

Technological Advancements

Ongoing research and innovation in hemp processing and binder formulations have improved the mechanical performance and workability of hempcrete market. The development of hybrid hemp-lime composites and pre-cast hemp blocks has also enhanced its structural applications, making it easier to integrate into modern construction systems.

Growing Use in Retrofitting and Heritage Restoration

Hempcrete’s market breathable and non-toxic characteristics make it ideal for renovating older buildings. It helps regulate humidity, prevents condensation, and enhances thermal efficiency without damaging existing structures—offering significant opportunities in the restoration and retrofitting segment.

Market Restraints

Despite its strong growth prospects, the hempcrete industry faces several challenges.

Structural limitations: Hempcrete market cannot replace load-bearing concrete in large-scale constructions, restricting its use primarily to residential and low-rise buildings.
Low compressive strength: Compared to traditional materials, hempcrete market has lower strength, which limits its structural applications.
Limited awareness: Many architects, builders, and regulators remain unfamiliar with hempcrete’s market properties and potential. Wider adoption will require increased training, technical knowledge, and inclusion in national building codes.
Inconsistent regulations: In some regions, hemp cultivation laws and material standards remain unclear, hindering supply chain stability.

Addressing these barriers through education, standardization, and innovation will be essential for the hempcrete market to reach full potential.

Segmentation Overview

By Application:
The hempcrete market is segmented into walls, floors, and roofs. Walls dominate the segment due to hempcrete’s market superior insulation and moisture-regulating capabilities, which are ideal for building envelopes. Floors and roofs are emerging areas as builders explore full eco-housing designs.

By End-Use:
The residential sector accounts for the majority of hempcrete market usage, driven by rising demand for energy-efficient and sustainable housing. The commercial segment is also growing, particularly in eco-resorts, educational institutions, and public infrastructure projects that prioritize environmental performance.

Regional Insights

Europe remains the largest regional market, holding approximately 13% of the global share in 2024. Countries such as France, the U.K., and Germany have led in hemp cultivation and sustainable construction policies, enabling faster market adoption.
North America is experiencing rapid growth due to favorable regulatory changes and the rising popularity of green building projects across the U.S. and Canada.
Asia Pacific shows strong potential as nations like China expand hemp cultivation and invest in sustainable housing initiatives.
Latin America and the Middle East & Africa are emerging regions with high potential, particularly for affordable and climate-resilient housing solutions.

Key Industry Developments

March 2024: The Australian Hemp Masonry Company reported a significant increase in their hempcrete production, tripling their annual supply to 120 homes from 40 homes per year over the past decade. This growth highlights the increasing demand for sustainable and eco-friendly building materials such as hempcrete.
January 2024: The International Code Council (ICC) added an appendix on hemp-lime construction to its 2024 International Residential Code (IRC). Such developments are helpful for builders to obtain permits and approvals to use hempcrete.

Future Outlook

The future of the hempcrete market looks promising, with ongoing innovation and a global shift toward sustainable infrastructure. Companies are exploring hybrid composites, pre-cast modular systems, and hemp-based insulation panels to enhance performance and expand application areas.

As building codes evolve and governments continue to emphasize sustainability, hempcrete market is expected to play an increasingly vital role in carbon-neutral construction. The combination of environmental benefits, energy efficiency, and material versatility positions hempcrete market as a cornerstone of future green building technologies.

The hempcrete market is on a path of substantial growth, supported by sustainability trends, technological progress, and favorable regulations. With a projected value exceeding USD 2,183.3 million by 2032, hempcrete represents not just an innovative building solution but also a strategic step toward reducing the environmental impact of the global construction industry.

As awareness continues to grow and performance innovations expand its usability, hempcrete market will likely become a mainstream material in modern architecture—defining the future of eco-friendly construction.