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Hemp insulation has the potential to become a viable industry in the U.S., but its long-term success will depend on scaling up domestic production and increasing market demand, according to researchers at the Georgia Institute of Technology (Georgia Tech).
The research, published in the Journal of Cleaner Production, is one of the first to analyze the scalability of hemp insulation in the U.S. While previous economic studies have focused primarily on consumer pricing, the Georgia Tech team took a broader approach by assessing the industry’s perspective.
“Hemp-based insulation can play a major role in reducing carbon emissions from buildings, but to make it commercially viable, we need to increase domestic production and drive sales volumes,” said Arjun Thangaraj Ramshankar, lead author of the study and a Ph.D. student in environmental engineering.
The findings suggest that despite high raw material costs and an underdeveloped supply chain, the market for hemp insulation presents a promising business opportunity if supported by strategic policy incentives and investment.
Need for incentives
Buildings account for roughly 20% of global greenhouse gas emissions, and insulation materials contribute significantly to a building’s carbon footprint. Conventional insulation, such as fiberglass and foam-based products, often has a high environmental impact due to energy-intensive production processes and non-biodegradable waste. Hemp insulation, by contrast, is made from renewable plant fibers and can reduce insulation-related emissions by 90% or more, according to some estimates.
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Industrial hemp production in the U.S. has expanded rapidly since its legalization in 2018, with the plant’s fibers being used in textiles, biodegradable plastics, and construction materials. Hempcrete, hemp-based plasters, and insulation are increasingly recognized for their potential to lower carbon emissions in the building sector, particularly in Europe, where the market is more developed.
“Hemp insulation can directly replace fiberglass insulation in residential and commercial buildings, but it currently costs about twice as much,” said Joe Bozeman, an assistant professor in the School of Civil and Environmental Engineering and a senior co-author of the study. “That’s where well-placed incentives could play a critical role in fostering market adoption.”
Barriers to growth
Despite its environmental benefits, hemp insulation faces significant barriers to widespread adoption. The U.S. hemp industry remains fragmented, with limited infrastructure for processing raw hemp fiber into insulation-grade material. Additionally, demand for hemp-based construction products is still developing, meaning early-stage manufacturers face challenges in achieving the economies of scale necessary to drive down costs.
The Georgia Tech researchers employed machine learning techniques to fill in data gaps and model the economic feasibility of hemp insulation. Their analysis found that while hemp insulation has a viable business case, sustained growth will require policy support, investment in manufacturing capacity, and increased public awareness of its benefits.
“This could be a really mutually beneficial marketplace for everyone,” Bozeman said. “We get less embodied carbon in buildings, a new industry, new jobs, and opportunities for technological advancements in insulation materials.”
Synergies
One avenue for accelerating market development could be aligning hemp insulation with broader efforts to address the housing shortage in the U.S. Bozeman suggested that integrating hemp-based materials into new housing construction could provide a dual benefit: reducing the carbon footprint of buildings while simultaneously driving demand for sustainable insulation products.
“We could have a really interesting dynamic,” he said. “Some of the newer houses could have less embodied carbon by using this hemp insulation, which could also jump-start the market. This is something federal or state legislation can address.”
Broader goal
The study was co-authored by graduate student Kelly Farmer and mechanical engineering assistant professor Akanksha Menon. Their research used a techno-economic analysis framework, a methodology that Bozeman’s lab also applies to studies on reducing concrete’s carbon footprint, recycling lithium from electric vehicle batteries, and filtering harmful chemicals like PFAS from wastewater.
“We used hemp insulation as our material for this study, but the broader goal was developing a framework for assessing economic viability for any alternative material,” Ramshankar said.
The findings add to the growing body of research exploring sustainable alternatives in the construction sector. ScienceDirect, the platform hosting the study, is a leading repository for peer-reviewed scientific and technical research, providing insights into innovations shaping industries worldwide.
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