[PRESS RELEASE] – AUSTIN, Texas, March 25, 2025 – New economic reports have been released. Hemp-derived cannabinoids: A Revision of the Economic Impact Assessment of Cannabinoid Retailing in TexasThe hemp industry in Texas is estimated to generate $268 million dollars of tax revenue annually, with sales totaling $5.5 billion.
Develop by Whitney EconomicsThis report is a follow-up to the 2023 study of the Texas legal hemp industry. It examines revenues, employment and wages, as well as the economic potential. In the 2025 update, the focus is on the possible impact of legislation proposed to prohibit the sale hemp-derived products containing cannabinoids.
These findings are:
- Retail GrowthThe retail sales revenue in 2025 is expected to reach $4,3 billion. That’s up from $3,3 billion in 2023.
- Expanding IndustryIn 2025, the total number of jobs within the hemp industry will grow to 53.300, up from 50.100 positions in 2023.
- High PayThe hourly wage increased across all industries, from $1.6 million in 2023 to $2.1 in 2025.
Texas Could lose Billions of Dollars due to regulatory risk
The latest statistics show that proposed state legislation, such as Texas Senate Bill 3 (which seeks to prohibit all hemp products derived from THC), could result in a loss of $7.5 billion to the industry and the elimination of 40,201 job opportunities.
Cynthia Cabrera is the chief strategist at Hometown Heroes President of the Texas Hemp Business Council. The proposed regulation that would restrict or prohibit hemp-derived products containing cannabinoids will destroy small businesses and eliminate thousands of jobs, as well as strip millions of dollars from the Texas economic system. Before making any decisions that may have a negative impact on this industry, lawmakers must take into account the economic implications.
RELATED: Texas Senate Passes Bill to Ban Hemp THC: ‘These People Are Not Good People,’ Senator Says
In Texas, there are more than 8500 hemp and cannabinoid businesses. 72% reported profits in 2018. The 2025 report further estimates the industry’s total revenue at $5.5 billion* and its overall economic impact at $10.3 billion. Additional sector findings include:
Retail Sector
- Revenues: $4.3 Billion
- Jobs: 41,359
- Earnings: $1.53 Billion
- Sales Tax Revenue: $268 million
Wholesale sector:
- Revenue: $309 Million
- Jobs: 4,043
- Earnings: $190 Million
Manufacturers Sector
- Sales: $956 Million
- Jobs: 7,981
- Wages: 374 millions dollars
Cabrera stated that hemp products were more than an economic engine; they also improved the quality of life for Texans, veterans and other adults who are looking to relax and improve their health. Since 2019, Texas’ hemp market is governed by strict rules, which include licensing, extensive testing, inspections and labeling that includes ISO-certified laboratory reports. As the debate continues in the Texas Legislature, we remain optimistic that cooler heads will prevail and lawmakers will see the value of a well-regulated market. Our industry is committed to furthering responsible measures such as restricting sales only to adults 21 years and older, mandating child-resistant packaging and setting backs for sales of adult products from schools. “With the right safeguards we can protect the consumer, maintain jobs and ensure that the industry continues to grow.”
RELATED: Texas Lieutenant Governor ‘Carded’ at Compliant Austin-Based Hemp Retailer
*Gas station sales and revenue of larger manufacturers are not represented in the 2025 survey findings.
Please note that all figures have been rounded up to the nearest whole.
The Study Methods
Hemp-derived cannabinoids: A Revision of the Economic Impact Assessment of Cannabinoid Retailing in Texas Hometown Hero, a founding member of the Texas Hemp Business Council commissioned this work.. Whitney Economics conducted the survey, which consisted of 22 questions, aimed specifically at operators in the hemp industry, such as retailers, distributors, and manufacturers. The survey was conducted over six weeks at the beginning of 2025 and reached 4,500 companies, which represents 53% out of Texas’ 8,500 estimated hemp-related business. Whitney Economics supplements the self-reported information with independent research. They cross-reference responses and external sources with insights and knowledge from hemp and cannabis markets. A 2.4x multiplier was used to estimate the industry’s economic impact.