How building and the hemp prospectus connect: hempcrete, housing targets and NSW’s investment pitch.
NSW has put hemp in front of investors. The NSW Industrial Hemp Investment Prospectus, produced by Invest Regional NSW (part of the Department of Primary Industries and Regional Development), argues the state is ready to scale the whole value chain. For anyone in hemp building, the construction section is the one to read first.
Karina Tyler, Investment Manager, Industry at Invest Regional NSW, walked iHemp NSW members through it in a recent webinar introduced by Lisa Flower for the committee.
Why a prospectus, and why now?
The prospectus follows the NSW Industrial Hemp Industry Development Plan. Where the plan sets direction, the prospectus responds to its market access and supply chain needs. It aims to lift investor and consumer awareness, identify market pathways for NSW-made hemp products and promote the state’s competitive advantages. Hemp sits within Invest Regional NSW’s agribusiness priority sector.
The housing numbers behind hemp building
The NSW Government has committed to 377,000 new homes by 2029 under the National Housing Accord. The prospectus notes this means roughly 25,000 additional homes a year, and that NSW is projected to account for about 30% of Australia’s forecast growth in construction activity over the next decade.
That is a lot of wall, slab and insulation. The prospectus positions industrial hemp as a fast-growing, renewable, zero-waste input that can ease pressure on traditional materials like concrete, prefabricated blocks and insulation. It also points out that the construction sector is responsible for more than 30% of global carbon emissions, and that hemp materials offer a lower-emissions option by absorbing and storing CO₂.
Hempcrete: the $35 million modelling
Hempcrete captured about 1.4% of the global concrete market in 2024, and over 5% in Spain and Mexico. The Deloitte Access Economics modelling behind the prospectus asks what happens if NSW reaches a mid-range 2% share, matching the current US and France figures. The answer is an opportunity of around A$35 million by 2034-35.
These are modelled scenarios rather than forecasts, but they give builders, manufacturers and funders a number to work with. Hemp hurd products named in the prospectus include hempcrete, prefabricated blocks, insulation, fibre board, and paints and coatings.
The gap: processing and whole-plant use
The prospectus is candid about where the opportunity lies:
- Local processing: around 99% of Australia’s industrial hemp imports are semi-processed (post-decortication). More local processing could reduce import reliance.
- Whole-plant use: local processors currently focus on selling hurd, while internationally bast fibre is the primary product and hurd is a by-product. Finding value-add uses for bast fibre locally could improve industry profitability.
- Existing infrastructure: cotton gins in North West NSW are trialling hemp processing using existing equipment.
Why NSW?
NSW has been Australia’s leading hemp-producing state for the past three years, with about 1,350 of the roughly 3,200 hectares grown nationally in 2023-24. It also accounted for 85% of Australia’s hemp exports that year. Research strength includes UTS and UNSW teams working on hempcrete performance and prefabricated panels, and more than A$950 million has been invested in Special Activation Precincts, which are investment-ready industrial parks with streamlined planning.
What it means for the hemp building sector
If you build with hemp, supply hemp materials or process hurd, the prospectus is a useful document to cite in funding conversations. If you’re looking for someone to build with, the Hemp Building Directory lists Australian practitioners and suppliers. The full prospectus can be downloaded from Invest Regional NSW.
FAQ
What is the NSW Industrial Hemp Investment Prospectus?
A document from Invest Regional NSW that sets out market opportunities, modelling and NSW’s competitive advantages to attract investment across the hemp value chain, including construction, food, textiles and cosmetics.
How big is the hempcrete opportunity in NSW?
The prospectus models about A$35 million by 2034-35 if hempcrete reaches a 2% share of the NSW concrete market. This is a modelled scenario, not a guarantee.
Why is hemp building relevant to NSW housing targets?
With 377,000 new homes committed by 2029, demand for building materials will rise. The prospectus presents hemp hurd products as a renewable, lower-emissions option alongside conventional materials.
Where can I get the prospectus?
Download it from the Invest Regional NSW industrial hemp page: investregional.nsw.gov.au/industrial-hemp.
Links: iHemp NSW webinar summary · Invest Regional NSW prospectus · Hemp Building Directory
Disclaimer
HBD do not warrant the quality or experience of anyone listed on this directory.
We have relied on the information provided by the business and its representatives.
This site is not intended to provide and does not constitute building advice, or other professional advice.
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