UAE Oceania Industrial Hemp Market Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

UAE Oceania Industrial Hemp Market Overview

• The UAE Oceania Industrial Hemp Market is valued at USD 1.4 billion, based on a five-year historical analysis and alignment with the Middle East & Africa and Oceania regional industrial hemp revenues. This growth is primarily driven by increasing awareness of the health benefits of hemp products, including hemp seeds and oils rich in protein, omega fatty acids, and dietary fiber, along with a rise in demand for sustainable and eco-friendly materials across various industries. The market has seen a significant uptick in consumer interest, particularly in the food and beverage, personal care, and textile sectors, where hemp is being adopted for plant-based foods, natural cosmetics, and low-impact fibers.
• Key players in this market include the UAE, Australia, and New Zealand as geographic hubs driving demand and regulatory developments for industrial hemp in the wider region. The UAE benefits from its strategic location for trade, logistics, and re-export activities across the Middle East, Africa, and Asia, while Australia and New Zealand have established agricultural practices, supportive federal and state licensing frameworks for low-THC hemp, and a growing consumer base for hemp-derived foods, cosmetics, and wellness products. These regions are increasingly active in innovation and product development, including hemp-based foods, textiles, building materials, and nutraceuticals, which strengthens their position in the industrial hemp value chain.
• In the UAE, industrial hemp and cannabis-related activities are governed under the Federal Decree-Law No. 30 of 2021 on Combating Narcotics and Psychotropic Substances issued by the UAE government, which specifies conditions and licensing requirements for handling, import, export, and use of substances containing cannabis and its derivatives. This framework requires entities to obtain authorization from competent authorities, comply with tetrahydrocannabinol (THC) thresholds and product safety rules, and adhere to strict control, labeling, and traceability standards for any allowed medical, research, or industrial use. The initiative in the wider region aims to support compliant value-added processing, protect public health, and align with international conventions while enabling controlled development of hemp-based applications in textiles, food ingredients, cosmetics, and specialty materials.

UAE Oceania Industrial Hemp Market Segmentation

By Product Type:The product type segmentation includes Hemp Fiber, Hemp Seed, Hemp Seed Oil, CBD Hemp Oil, and Others. Hemp Seed and Hemp Seed Oil together account for a major share of industrial hemp revenues in the wider Middle East & Africa and global markets, reflecting strong adoption in food, beverages, and dietary supplements. Among these, Hemp Seed Oil is currently one of the leading product categories in value terms in many markets due to its extensive use in functional foods, salad oils, nutraceuticals, and cosmetics, driven by consumer demand for clean-label, plant-based, and omega-rich products. Hemp Fiber is also gaining traction, particularly in the textile, paper, automotive composites, and construction sectors, as industries seek sustainable alternatives with lower water and chemical footprints compared to conventional fibers and insulation materials. The growing trend towards health and wellness, sports nutrition, and stress-relief products is further propelling the demand for Hemp Seed and CBD Hemp Oil, making them significant contributors to market growth through applications in supplements, tinctures, and functional consumer packaged goods.

By Application:The application segmentation encompasses Food & Beverages, Textiles & Apparel, Construction & Building Materials, Personal Care & Cosmetics, Pharmaceuticals & Nutraceuticals, Bioplastics & Composites, and Others. In the broader Middle East & Africa industrial hemp market, seeds for food and beverages represent the largest revenue-generating product segment, supporting the view that Food & Beverages is among the leading application areas in value. The Food & Beverages segment is leading the market, driven by the increasing incorporation of hemp seeds, protein powders, and oils in plant-based milks, bakery products, snacks, and fortified beverages. The Textiles & Apparel segment is also witnessing significant growth as manufacturers shift towards sustainable materials and utilize hemp fiber blends in apparel, technical textiles, and eco-friendly fabrics. Personal Care & Cosmetics is emerging as a strong contender, with consumers increasingly favoring natural oils, cannabinoid-infused skincare, and clean-beauty formulations, supported by hemp seed oil’s emollient and antioxidant properties.

UAE Oceania Industrial Hemp Market Competitive Landscape

The UAE Oceania Industrial Hemp Market is characterized by a dynamic mix of regional and international players. Leading participants such as Canopy Growth Corporation, Aurora Cannabis Inc., Charlotte's Web Holdings, Inc., HempMeds, Elixinol Wellness Limited, Medterra CBD, CV Sciences, Inc., Green Roads, HempFusion Wellness Inc., 4 Corners Cannabis, Joy Organics, Pure Hemp Botanicals, Endoca, NuLeaf Naturals, Koi CBD contribute to innovation, geographic expansion, and service delivery in this space.

UAE Oceania Industrial Hemp Market Industry Analysis

Growth Drivers

• Increasing Demand for Sustainable Products:The UAE's commitment to sustainability is driving the industrial hemp market, with the government aiming for a significant reduction in carbon emissions in future as part of its long-term net-zero strategy. In future, the sustainable product market is projected to reach AED 15 billion, reflecting a growing consumer preference for eco-friendly alternatives. This trend is bolstered by the UAE's Vision 2021, which emphasizes sustainable development, further enhancing the demand for hemp-based products across various sectors.
• Government Support and Regulatory Changes:The UAE government has introduced favorable regulations for hemp cultivation, including a 40% reduction in licensing fees for hemp farmers in future. This initiative is part of a broader strategy to diversify the economy and promote agricultural innovation. Additionally, the establishment of the UAE Hemp Association in future aims to streamline regulations, providing a clearer framework for businesses, which is expected to attract investments exceeding AED 600 million in the next two years.
• Rising Awareness of Health Benefits:The health benefits of hemp products are gaining traction, with the UAE witnessing a 50% increase in consumer interest in hemp-derived supplements and foods in future. This surge is supported by research from the Ministry of Health, indicating that hemp seeds are rich in omega-3 fatty acids and protein. As health-conscious consumers seek natural alternatives, the demand for hemp-based health products is projected to contribute significantly to market growth, potentially reaching AED 1.2 billion by the end of future.

Market Challenges

• Regulatory Uncertainties:Despite recent regulatory advancements, uncertainties remain regarding the legal status of hemp products in the UAE. In future, the lack of a comprehensive legal framework could hinder market entry for new businesses, with an estimated 25% of potential investors citing regulatory concerns as a primary barrier. This ambiguity may delay the establishment of a robust industrial hemp sector, impacting overall market growth and investment opportunities.
• Limited Infrastructure Development:The industrial hemp sector in the UAE faces significant infrastructure challenges, with only 20% of the necessary facilities for processing and distribution currently in place. In future, inadequate logistics and processing capabilities could restrict market expansion, as businesses struggle to meet growing demand. The government’s investment in agricultural infrastructure is crucial, but current funding levels of AED 300 million are insufficient to address these pressing needs effectively.

UAE Oceania Industrial Hemp Market Future Outlook

The future of the UAE Oceania industrial hemp market appears promising, driven by increasing investments in research and development, particularly in sustainable applications. As consumer preferences shift towards eco-friendly products, the market is likely to see a surge in innovative hemp-based solutions. Additionally, collaborations between private enterprises and research institutions are expected to enhance product offerings, fostering a competitive landscape that could lead to significant advancements in the industry in future.

Market Opportunities

• Export Potential to Global Markets:The UAE's strategic location offers significant export opportunities for hemp products, particularly to Europe and Asia, where demand is rapidly increasing. In future, the global hemp market is projected to exceed AED 60 billion, presenting a lucrative avenue for UAE producers to tap into international markets, potentially increasing export revenues by AED 400 million.
• Innovations in Hemp-Based Products:The ongoing research into hemp-based bioplastics and textiles presents a unique opportunity for the UAE market. With the global bioplastics market expected to reach AED 25 billion in future, local companies can leverage this trend to develop innovative products, potentially capturing a market share worth AED 200 million in the next few years, thus enhancing the sustainability profile of the UAE economy.