Texas Hemp Industry Generates $5.5B Amid Legislative Risks

Person selecting hemp jars, Texas hemp industry focus

The Growing Hemp Industry: A Vital Component of Texas Economy

Texas has become a significant player in the hemp market, generating an impressive $5.5 billion through various sectors including retail, wholesale, and manufacturing. A recent report from Whitney Economics has brought to light the extensive economic impact of this burgeoning industry, emphasizing how crucial it is not just for local businesses, but for the overall economy of the state.

The report revealed that more than 70% of survey respondents—comprising individuals from 290 businesses—reported profitability, with only 7% struggling to make ends meet. This signifies the resilience of the hemp sector in Texas, a marketplace that has grown tremendously since the legalization of hemp in 2019. Notably, the current business landscape includes 8,467 registered hemp retailers across Texas, indicating a booming size.

Texas Legislation: A Threat to the Success of Hemp Industry?

However, looming legislative changes pose significant threats to the livelihood of these businesses. The possibility of a law prohibiting the sales of CBD and cannabinoid products has business owners alarmed. Responses from the Whitney Economics survey indicate that a staggering majority of retailers, wholesalers, and manufacturers would be forced to cease operations if such regulations were enacted—pointing towards a potential economic catastrophe.

Less than 20% of businesses indicated they could survive on reduced revenues if the law goes through. The stakes couldn't be higher, as the economic ripple effects could affect thousands of jobs. Currently, the Texas hemp market employs approximately 53,000 individuals, reflecting the sector's potential for further job creation and economic contribution.

Key Factors Driving Hemp Sales

Among the various products sold, THCA flowers, edibles, and vapes lead the pack in terms of sales volume. Edibles alone comprised over 26% of retail sales among survey respondents, indicating a strong consumer preference for these products. Meanwhile, THCA flowers accounted for more than 25% of sales and have grown in popularity among consumers seeking potent but legal alternatives to THC products.

The growth in this market also reflects broader trends in consumer preferences, where wellness products are increasingly driving purchasing decisions. The market saw an overall increase in manufacturing licenses, which grew by 14.7% between 2022 and 2024—a clear indication of the sector's vitality.

Economic Contribution: The Broader Picture

The hemp industry's overall estimated revenue shows just how vital it has become to the Texas economy. In addition to its $5.5 billion revenue, the sector generates an estimated $267 million in sales tax, which bolsters public funds significantly. This financial impact underscores the importance of the hemp industry not only as a source of revenue for entrepreneurs but also as a contributor to the public sector.

While businesses strive to adapt to changing consumer trends, it is essential to note that this industry has the potential to enhance job growth and economic expansion further. The average hourly wage for employees in the retail sector rose from $14.19 in 2023 to $17.83 in 2025, showcasing the upward financial mobility within this niche market.

Looking Ahead: Adaptation and Resilience

As the hemp industry faces potential legislative hurdles, the key takeaway is the need for resilience. Industry players are encouraged to advocate for their rights, work on consumer awareness campaigns, and strategize to adapt to changing regulations. The valuable contribution of this sector must be highlighted to policymakers, given how vital it is to local economies, from San Antonio to larger Texas cities.

If the hemp industry continues on its current trajectory and advocates successfully for its interests, it could serve as a model for other emerging markets facing similar challenges.

Conclusion: Take Action to Support Local Industries

The resilience of Texas's hemp industry amid ongoing legislative risks signifies the importance of local support. Every Texas resident and business owner has a stake in promoting a favorable environment for hemp-related businesses. The potential loss of job opportunities and economic gains highlights the need to engage in advocacy. Consider contacting local representatives to express your support for the thriving hemp industry and ensure its continued success. Learn more about how you can support your local San Antonio businesses and contribute to safeguarding this essential market.