Texas’ hemp industry continues to experience huge growth, clocking in $5.5 billion in annual sales and contributing an estimated $10.3 billion to the state’s economy, according to a new market report from Whitney Economics on Tuesday – just days after the state Senate passed controversial legislation that could sever the sector.
The report, commissioned by the Texas Hemp Business Council, found the industry now supports more than 53,300 jobs across the state – an increase of 3,200 positions since 2023 – while producing $268 million in tax revenue annually.
It is a pivotal moment for the economic analysis, as Texas Senate Bill 3 which bans most hemp-derived goods in the State passed last week with a vote of 24-7. The bill will ban all hemp-derived cannabis except CBD, CBG and CBG and impose annual fees for retailers and manufacturers of up to $20,000 each.
Cynthia Cabrera said, “Texas hemp is growing and providing thousands of new jobs. It also has a billion-dollar economic impact,” she added. Cabrera was formerly the Chief Strategy Officer at Hometown Hero as well as a member of board of Texas Hemp Business Council. However, the proposed regulations to restrict or banning hemp-derived cannabinoid product will decimate small businesses. They’ll also eliminate tens and thousands of job opportunities, and take billions out of Texas’ economy.
Industry people dispute the state fiscal assessment that only around 10% of businesses will be affected by this legislation.
Cabrera told reporters earlier that the loss of sales tax revenues and unemployment benefits would cost at least $760,000,000 to the state. Green Market Report. You’re talking about 50 000 people who are unemployed.
In Texas, the industry is now hoping for a bill called HB4242. This alternative, described as a bill with “reasonable regulations” would keep the hemp market alive while imposing standards of safety.
Whitney Economics has updated its study from 2023 of the legal Texas Hemp Industry. In 2025 retail sales reached $4.3 billion, up from the $3.3 billion recorded two years prior. The report shows that consumer demand is still strong despite uncertainty in regulatory matters, such as potential barb trading before the Supreme Court.
The report shows that industry wages are expected to increase from $1.6 billion to $2.1 million in 2025.
Texas has a thriving hemp-cannabinoid market, which is home to more than 8,500 business across the entire state. This report states that 72% reported profitability in this past year.
The retail sector is responsible for the majority of this growth. It generates $4.3 billion and supports 41,359 workers. Manufacturing generates $956 millions in revenue, and 7,981 people are employed. Wholesale sector creates $309 and 4 043 jobs.
Texas lawmakers have introduced Senate Bill 3 that bans all products with low THC levels derived from hemp. This report estimated that such regulations may cost the hemp industry up to $7.5 billion, and result in the loss of more than 40,000 positions.
These findings are based on the results of a survey that was conducted in Texas over a period of six weeks, beginning early 2025. The sample size for this survey included 4,500 companies representing approximately 53% (or more) estimated businesses related to hemp. Whitney Economics combined self-reported information with independent research, and used a multiplier of 2.4x to calculate the industry’s economic impact.
State legislatures are also debating how to regulate cannabinoids derived from hemp, especially those that contain “intoxicating amounts” of THC. Federal hemp production was legalized by the 2018 Farm Bill, but each state retains control of how hemp-derived products are manufactured and sold.