A recent economic report sheds light on Texas’s expanding hemp industry, revealing its substantial impact on the state’s economy. The document, titled Hemp-Derived Cannabinoids in the Lone Star State, reports $5.5 billion in annual sales and $268 million in tax revenue. Whitney Economics developed this extensive analysis, building on previous studies to explore revenues, employment, and the burgeoning market potential, while also flagging potential threats from proposed regulations.
Notably, retail revenue soared to $4.3 billion in 2025, marking a significant increase from $3.3 billion in 2023, signalling robust consumer demand. Employment within the sector also experienced a boost, with total jobs climbing to 53,300, a rise of 3,200 from the previous count. Plus, industry-wide wages have surged to $2.1 billion, up from $1.6 billion, reflecting higher hourly pay across all sectors.
However, not all news is favourable. Proposed regulations, such as Texas SB3, could threaten the industry dramatically, risking $7.5 billion and over 40,000 jobs if implemented. Cynthia Cabrera, chief strategy officer at Hometown Hero, voiced strong concerns about the negative fallout these restrictions would have on small businesses and employment across Texas.
The Texas hemp-cannabinoid market currently houses over 8,500 businesses, with approximately 72% reporting profitability this year. The report predicts the industry’s total revenue could reach $5.5 billion and its complete economic output may hit $10.3 billion. The retail sector alone contributes $4.3 billion, while significant revenues and job creation are also found within wholesale and manufacturing segments.
Since 2019, Texas’ hemp market has thrived under strict regulations, including testing and proper labelling protocols. As lawmakers deliberate the future of the industry, stakeholders express hope for balanced approaches. They advocate for protective measures, such as age restrictions and child-resistant packaging, ensuring the industry’s sustained growth while protecting consumers.
The comprehensive study was commissioned by the Texas Hemp Business Council, with insights gleaned from over 4,500 businesses, indicating broad engagement in the sector. Whitney Economics combined survey responses with extensive independent research to determine the overall economic implications, applying a 2.4x multiplier effect for broader economic impact assessments.
The latest report reveals Texas’s hemp industry generates $5.5 billion in annual sales and contributes $268 million in tax revenue, showing strong growth with 53,300 jobs created. However, proposed regulations could endanger these gains, potentially costing $7.5 billion and over 40,000 jobs. Industry leaders advocate for reasonable regulations to maintain momentum while protecting consumers.
In summary, the Texas hemp industry is flourishing, contributing significantly to the economy through impressive sales, job growth, and rising wages. Nevertheless, proposed regulations pose a serious threat that could undermine this progress. Stakeholders remain hopeful that lawmakers will consider the broader economic implications while introducing sensible protections. The future of the Texas hemp market depends on a balanced approach to regulation—one that ensures growth while safeguarding consumer interests.
Original Source: www.manilatimes.net
