Increasing both supply and demand are necessary for the hemp fiber market to grow and develop. Supply and demand are not exclusive, but rather affect one another. The dominant factor influencing the demand for a commodity is price. Yet the current lack of supply has kept the industry small-scale, resulting in few options and higher prices. Customers don’t want to buy products when prices are higher than similar products on the market.
In an earlier blog, I explained the technology needed to increase the supply of hemp fiber utilizing green decortication. Not only would the supply of hemp increase, but the cost of processing would be lowered, resulting in hemp that is cheaper and more competitive with other natural fibers. Lower prices will increase demand, allowing hemp to be utilized in greater applications such as textiles, composites, plastics, and the building industry.
Another component influencing the demand for a product is the cost of related goods. Flax is a good example. Like hemp, flax produces a bast fiber which is utilized in the manufacturing of linen fabrics. Linen textiles produced from flax are so similar to hemp that it is difficult to tell them apart without a lab test. While flax grows 3 feet in height, hemp can grow 15-20 feet tall, producing two to three times as much bast fiber per acre as flax and five times as much hurd.
Flax reaches an average height of 3 feet at time of harvest, producing 1,200 to 1,500 pounds of bast fiber per acre.
Hemp reaches a height of 15-20 feet at time of harvest, producing over 2,000 pounds of bast fiber and 8,000 pounds of hurd per acre.
Approximately 12 million acres of flax are grown throughout the world. This type of flax is mostly grown in northern Europe and Russia, with the highest quality fabrics being produced in Ireland, Italy, and Belgium. There has been a growing demand for flax fiber over the past couple of years. At the same time, sanctions banning imports from Russia have decreased the supply. This has resulted in flax fiber increasing in price, and for the first time in modern history, hemp fiber is now less expensive than flax fiber.
“This has resulted in flax fiber increasing in price, and for the first time in modern history hemp fiber is now less expensive than flax fiber.”
