UK Hemp Industry Set for 300% Growth by 2030

The global industrial hemp market is experiencing unprecedented growth, and the UK is positioned to capture a significant share. Industry analysis from Grand View Research projects the global market will reach $36.05 billion by 2030, growing at a compound annual growth rate (CAGR) of 16.2%. Within this global expansion, the UK hemp market is projected to grow by approximately 300%, reaching an estimated £1.2 billion by 2030, driven by demand across construction, textiles, food, and industrial applications.

Market Overview

The industrial hemp market has undergone a dramatic transformation over the past decade. Once a niche crop with limited commercial applications, hemp is now recognised as a versatile, sustainable raw material with applications spanning construction, textiles, food and nutrition, automotive composites, paper, bioplastics, and energy. According to Allied Market Research, the global industrial hemp market was valued at approximately $6.8 billion in 2023 and is projected to reach $36.05 billion by 2030.

This growth is not speculative—it is being driven by measurable shifts in consumer behaviour, corporate sustainability commitments, government policy, and technological capability. The UK, with its strong research base, supportive regulatory environment, and growing domestic demand, is well-positioned to become a significant player in this expanding market.

Key Growth Drivers

Sustainable Construction

The UK construction sector is under increasing pressure to reduce carbon emissions, which account for approximately 40% of the UK's total carbon footprint. Hempcrete—a bio-composite made from hemp hurds mixed with lime—is emerging as a carbon-negative building material that sequesters more CO₂ during the hemp growing phase than is emitted during manufacture and construction. The UK Green Building Council has identified hemp-based materials as a key pathway to achieving net-zero construction, and demand for hempcrete is growing rapidly as architects, developers, and local authorities seek sustainable alternatives to conventional materials.

Textile Revolution

The global fashion industry is responsible for approximately 10% of annual carbon emissions and is facing mounting pressure from consumers, regulators, and investors to adopt sustainable materials. Hemp fibre requires significantly less water than cotton (up to 80% less according to the Stockholm Environment Institute), needs no pesticides, and produces a durable, breathable fabric. Major fashion brands including Patagonia, Levi's, and H&M have incorporated hemp into their product lines, and the sustainable textiles market is projected to grow at 9.1% CAGR through 2030.

Food & Nutrition

Hemp seeds are recognised as a complete protein source containing all nine essential amino acids, with an optimal omega-3 to omega-6 fatty acid ratio. The UK health food market has seen strong growth in hemp-based products including seeds, oils, protein powders, and milk alternatives. According to Mintel, the UK plant-based food market grew 23% between 2020 and 2024, with hemp products among the fastest-growing segments.

Market Segments

Construction and hempcrete represents the largest growth opportunity, driven by the UK's net-zero building targets and the growing availability of hempcrete products and trained installers.Textiles is the second-largest segment, benefiting from the fashion industry's sustainability transition and consumer demand for natural fibres. Food and nutrition is the most mature segment with established supply chains and consumer awareness, providing a stable foundation for market growth.

The UK Opportunity

The UK is uniquely positioned to capture a disproportionate share of global hemp market growth for several reasons. First, the Precision Breeding Act 2023 provides a regulatory framework that enables faster development and commercialisation of improved hemp varieties—an advantage not available in the EU. Second, the UK's world-class research institutions, including Rothamsted Research, the John Innes Centre, and leading universities, provide the scientific foundation for agricultural innovation. Third, the UK Government has demonstrated commitment through substantial funding, including the £21.5 million Farming Innovation Programme.

Building UK Supply Chains

A critical challenge—and opportunity—is building domestic processing capacity to match growing demand. Currently, the UK imports a significant proportion of processed hemp products, particularly fibre and textiles. Developing UK-based processing infrastructure would capture more value domestically, reduce transport emissions, create rural employment, and strengthen supply chain resilience.

The development of UK-optimised hemp varieties is a prerequisite for building competitive domestic supply chains. Varieties that perform well under UK growing conditions—shorter growing seasons, cooler temperatures, variable rainfall—will produce higher yields and better-quality raw materials than imported cultivars. This is precisely the focus of Precision Plants' Stackatrait™ development programme, which combines multiple precision trait modifications per variety across five categories, creating varieties specifically optimised for British agriculture. Our variety portfolio includes BritGrain Auto™ for grain, LongLine Fibre™ for fibre, and YieldMax Duo™ for dual-purpose applications.

Government Policy Support

The UK Government's support for hemp extends beyond the Precision Breeding Act and Farming Innovation Programme. Several policy initiatives create a favourable environment for hemp market growth:

For a detailed analysis of UK government support for hemp, including university research programmes and parliamentary initiatives, visit our UK Government Support for Hemp resource page. To understand the licensing requirements for hemp cultivation, see our UK Industrial Hemp Licence Guide.

Investment Landscape

Investment in the hemp sector is accelerating globally, with venture capital, private equity, and government funding flowing into companies across the value chain—from seed development and farming to processing and product manufacturing. In the UK, the combination of regulatory reform, government funding, and growing market demand is creating an increasingly attractive investment environment.

For investors, the UK hemp sector offers several compelling characteristics: a large and growing addressable market, strong government policy support, regulatory advantages over EU competitors, world-class research institutions, and tax-efficient investment vehicles. The Seed Enterprise Investment Scheme (SEIS) provides up to 50% income tax relief on qualifying investments in early-stage companies like Precision Plants, significantly improving risk-adjusted returns.

Precision Plants' Role

Precision Plants is positioned at the foundation of the UK hemp value chain. By developing precision-bred varieties optimised for British conditions, we enable the entire downstream industry—from farmers to processors to product manufacturers—to access higher-quality, more consistent raw materials. Our Stackatrait™ platform (multiple precision trait modifications per variety including DiseaseGuard+ powdery mildew resistance) enables the development of varieties with stacked beneficial traits: higher yields, better fibre quality, enhanced seed nutrition, improved climate resilience, and designed-in regulatory compliance.

The £912,259 DEFRA funding we received validates both the technology and the market opportunity. As the UK hemp industry grows toward its £1.2 billion potential, the companies that control the genetics—the seed varieties that underpin the entire value chain—will capture significant value. This is the opportunity Precision Plants is building toward.