Hempcrete Market Report 2025

The hempcrete market size has grown strongly in recent years. It will grow from $27.1 billion in 2024 to $29.11 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth during the historic period can be attributed to the rising demand for sustainable construction, green building certifications, increased awareness of carbon-neutral materials, expanding hemp cultivation, and government support for eco-friendly materials.

The hempcrete market size is expected to see strong growth in the next few years. It will grow to $38.23 billion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth projected for the forecast period is driven by carbon emission regulations, the rise of bio-based construction materials, growing demand for energy-efficient buildings, expansion of sustainable housing initiatives, and increased use in commercial green buildings. Key trends in the forecast period include innovations in hemp processing technology, prefabricated hempcrete blocks, integration with 3D printing construction, hybrid hemp-based composites, and regional adoption in cold-climate housing.

The increasing demand for sustainable construction materials is expected to drive the growth of the hempcrete market in the coming years. Sustainable construction materials are eco-friendly building products designed to lessen environmental harm throughout their life cycle. This growing demand is largely due to heightened environmental awareness, as builders and developers aim to reduce resource use, lower carbon emissions, and minimize the ecological footprint of construction activities. Hempcrete contributes to sustainable construction by serving as a low-carbon, biodegradable option that enhances energy efficiency and decreases environmental impact across a building’s lifespan. For example, in July 2024, the U.S. Green Building Council, a U.S.-based non-profit organization, reported that there were over 46,000 residential projects certified under the Leadership in Energy and Environmental Design (LEED) system, following a nearly 5% rise in new LEED residential project registrations in 2023. Therefore, the growing demand for sustainable construction materials is fueling the expansion of the hempcrete market.

Leading companies in the sustainable construction materials sector are focusing on creating innovative products, such as fire-resistant solutions, to enhance safety, increase climate resilience, and comply with stricter environmental and fire safety regulations in high-risk zones. Fire-resistant materials are engineered to endure high temperatures and prevent the spread of flames and smoke during fire incidents. For example, in March 2025, Hempitecture Inc., a U.S.-based manufacturing firm, launched a fire-resistant Hempcrete product that met ASTM E84 testing standards and was confirmed to be 100% fire resistant, offering a safe, sustainable construction material for areas prone to wildfires. Made entirely from bio-based ingredients, including industrial hemp and lime, the material is suitable for use in walls, floors, and roofs. In addition to its fire-resistant properties, Hempcrete enhances energy efficiency by preventing thermal bridging and reducing heating and cooling needs.

In April 2022, IND HEMP LLC, a U.S.-based agricultural hemp processor, formed a partnership with Hempitecture Inc. to supply natural hemp fibers for the production of Hempwool insulation. Through this collaboration, both companies aim to build a streamlined supply chain for hemp-based airlaid nonwovens used in Hempwool insulation, promoting sustainable manufacturing practices, boosting rural economies, and supporting the development of carbon-sequestering construction materials. Hempitecture Inc. is a U.S.-based firm specializing in bio-based building products made from plant-derived resources such as industrial hemp.

Major players in the hempcrete market are HempEco Systems LLC, HempFlax B.V., Hemp Block USA LLC, IsoHemp SA, Hempcrete Natural Building Ltd., Americhanvre Cast Hemp Inc., American Lime Technology Inc., Just BioFiber Structural Solutions LLC, Hempitecture Inc., Dun Agro Hemp Group LLC, Hemp Building Company LLC, UK Hempcrete Ltd., Hemp Technologies Inc., HempAlta Corp., Gohemp, Just BioFiber Structural Solutions LLC, The Hemp Block Company Limited, AFRIMAT HEMP, Hemp Homes Canada, Hanfsteine.

Europe was the largest region in the hempcrete market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in hempcrete report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the hempcrete market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.

Hempcrete is a sustainable biocomposite material composed of the woody core of the hemp plant (shiv or hurd) combined with a lime-based binder. It is primarily used for non-structural insulation in walls, roofs, and floors, providing excellent thermal performance, breathability, and carbon sequestration.

The main types of hempcrete include cast-in-place, precast, hybrid, and others. Cast-in-place hempcrete is a construction technique where the material is mixed and poured on-site into molds to create customized, insulating, and breathable building components. Its key properties include insulation efficiency, fire resistance, durability, and acoustic performance. It is made from various sources such as hurds, shives, and bast fibers. Applications span residential, commercial, and industrial construction, as well as renovation and retrofitting, serving end-use sectors such as the construction industry, architecture and design, eco-friendly building materials, and green building certification.

The hempcrete market research report is one of a series of new reports that provides hempcrete market statistics, including the hempcrete industry global market size, regional shares, competitors with the hempcrete market share, detailed hempcrete market segments, market trends, and opportunities, and any further data you may need to thrive in the hempcrete industry. These hempcrete market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The hempcrete market consists of sales of blocks, panels, loose-fill insulation, spray-applied hempcrete, hempcrete bricks, and plaster and renders. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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