Whitney Economics was founded by Beau Whitney, an international expert in cannabis and hemp industries. This week, Whitney Economics published a study that shows the value of hemp-cannabinoid products in the United States. This timely report is released amid the ongoing political battle in Washington over hemp regulations.
The data provided by hemp producers in 35 states shows a growing and profitable industry which is adapting to the expanding regulations of each state. The hemp-cannabinoid industry is a major contributor to the U.S. economic system. With a total addressable market value of $38,7 billion and an estimated 350,000 workers earning $13.9 billion, it is also a positive influence on the state economies. Whitney Economics released a press statement.
The 2018 Farm Bill legalized the use of hemp in all 50 states, which led to an exponential growth of this market. The 2018 Farm Bill also created a new market for hemp-based products that contain THC. In recent years, the availability and popularity of these products has increased dramatically. This is especially true in states which have not yet legalized adult-use cannabis.
Unfortunately, this rise in popularity led to a political backlash with many legislators seeking to ban most hemp-derived products. Earlier this week, federal legislators voted to postpone a looming prohibition on hemp-derived THC. However, a ban could still be implemented in the next few months. If that were to happen, it would be devastating for the new hemp-derived THC products industry.
“Stricter federal and state regulations, which are set to take effect in November, threaten to reduce retail revenue by $28,3 Billion, displace 225,000 workers, and reduce the state sales tax pot by $2.1 Billion, effectively eliminating most of the nation’s 50 000 hemp operators.” Whitney Economics estimates.
Beau Whitney, CEO of Whitney Economics and founder, stated that “the U.S. Hemp Industry is generally robust, healthy and growing.” But strict and unrealistic regulation passed this year threatens to put effectively three quarters of its operators out-of-business.
The fact that state and federal officials have so little information on the hemp market, they are unable to grasp the scope and size of this industry. In fact, hemp (fiber, grain and seeds) is a multi-billion dollar industry in the United States. It is also 600% greater than the legal U.S. Cannabis market ($29.1billion). The hemp-derived cannabinoids market, at $38,7 billion, represents 22% of overall hemp market. Whitney Economics has added.
In the 2026 report the survey data self-reported indicates that, if the federal legislation passed in the year 2025 is still in effect, only 8,5% of the remaining cannabinoid-containing products will be on the market, excluding even CBD-containing products which are not intoxicating. The survey respondents indicated that over 70% of businesses would either be forced to close or relocate outside the country. If the U.S. market was affected, 225,861 jobs would be lost, and $8.9 billion worth of wages. Total negative impact on all hemp sectors is substantial. If realized, this would lead to a loss of economic output of $86.6 billion for the U.S. economy.” “The press release continues.”
Whitney stated that “given the recent changes in federal and state legislation, the risks identified are significantly higher than they were in 2023.” These changes impact growth, employment, and tax revenue, and better federal regulatory stewardship will be required to balance public security with continued economic development.
For more information on hemp and cannabis industry data, or for a copy of this latest report, contact Whitney Economics at beau@whitneyeconomics.com or download the report here: whitneyeconomics.com/reports.
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