Industrial hemp, experiencing a resurgence after decades of neglect, is a traditional agricultural crop fully integrated into the European Union’s Common Agricultural Policy (CAP). This enables farmers who grow registered varieties with less than 0.3% THC to access direct area-based subsidies, just like with other large-scale crops. This inclusion acknowledges its agronomic value—such as crop rotation, soil improvement, and low input use and its strategic potential within green value chains.
Hemp is, at its core, a grain crop. It provides seeds rich in protein and essential fatty acids, as well as fiber and biomass for industrial uses. It is grown in short cycles, requires little water, does not need pesticides, and improves soil structure. Nearly the entire plant is utilized: seeds, leaves, flowers, long fibers, hurd, and even roots. This versatility makes it a circular crop, with applications across sectors such as food, cosmetics, bioplastics, textiles, automotive, and construction, among others.
One crop, many opportunities
With subsidies, agronomic advantages, and growing demand, hemp is emerging as one of the most strategic crops of the coming decade. For farmers, cooperatives, and processors, it represents a real opportunity to contribute to a low-carbon economy with a local, renewable, and sustainable raw material. It is a young and attractive sector with diverse economic prospects.
Seed and fiber: market cornerstones
Food and textile applications lead in volume. Seeds and their oil account for a large share of revenue due to their nutritional value: complete plant-based protein, omega-3s, and high digestibility. In textiles, long fiber is positioned as a natural alternative to cotton and linen, especially in sustainable blends for fashion, home goods, and biocomposites
Construction: a growing path
The true boom in the sector and the application with the greatest future potential is in construction. Its blend of sustainability, technical performance, and decarbonization capacity positions it as a structural solution within the ecological transition.
Hemp in construction is no passing trend it’s here to stay.
Hemp hurd the woody inner core of the stalk is used in the production of hempcrete, a mixture of hemp, lime, and water with excellent thermal and acoustic insulation properties.
What truly sets hempcrete apart is its climate impact: it sequesters carbon. Hemp captures large amounts of CO₂ during cultivation, which remains stored in the biomass and, when used in construction, is immobilized for decades. This makes it a carbon-negative material, a key asset in light of upcoming European regulations requiring disclosure of embodied carbon in buildings.
Spain: agricultural potential
As an agricultural powerhouse of the EU, Spain has ideal conditions to lead hemp cultivation: climate, soil, know-how, and a growing network of farmers. However, limited infrastructure especially the lack of decortication facilities to separate long fiber from hurd hinders its development.
Spain lacks the necessary technical and industrial capacity to process hemp efficiently, forcing much of the local crop to be processed abroad. This reduces profitability, slows the creation of a national value chain, and risks leaving Spain behind in the global market.
Conclusion
Hemp is not a trend, but a regenerative crop capable of addressing the agricultural, climate, and economic challenges of the 21st century.
Given its agricultural potential and strategic location, Spain could become a key player in this emerging value chain. With more investment, technical expertise, and public-private collaboration, hemp can become a profitable and sustainable alternative for farmers and a cornerstone of Europe’s circular bioeconomy.
A versatile crop offering renewable, low-impact raw materials that meet the growing demand for natural, functional, and responsible solutions a bridge between agriculture, industry, and sustainability that Europe must not overlook.
Mónica Solano
Account Manager at EIHA
