Whitney Economics, founded by leading international cannabis and hemp industry economist Beau Whitney, published a report this week that highlights the current value of the hemp-cannabinoid sector in the United States. The timely report comes amid the ongoing federal political battle over hemp regulations.

“Data provided by hemp operators in 35 states indicate a profitable, growing industry that is adapting to expanding state regulations. At $38.7 billion in total addressable market (TAM) value, with an estimated 350,000 jobs earning $13.9 billion in wages, the hemp-cannabinoid sector is a significant contributor to the U.S. economy and is demonstrating a positive impact on state economies as well.” stated Whitney Economics in a press release.

The 2018 Farm Bill legalized hemp across the United States, which resulted in exponential market growth. It also led to the creation of a largely new sector of consumable hemp products containing THC. Such products increased exponentially in availability and popularity in recent years, particularly in states that have yet to legalize adult-use cannabis product sales.

Unfortunately, that rise in popularity has yielded political backlash, with many lawmakers seeking to prohibit most consumable hemp products. Earlier this month, federal lawmakers voted to delay a looming ban on hemp-derived THC products, but a ban may still occur in the coming months. It would obviously be disastrous for the emerging consumable hemp THC industry if that happens.

“Stricter state and federal regulations set to be enacted in November threatens to reduce retail revenues by $28.3 billion, displacing 225,000 jobs and reducing state sales tax potential by $2.1 billion, effectively eliminating the majority of the nation’s 50,000 hemp operators.” Whitney Economics estimates.

“The U.S. hemp industry is generally healthy, robust, and growing,” Whitney Economics founder and chief economist Beau Whitney said. “But strict and unrealistic regulations passed this year threaten to effectively put three-quarters of its operators out of business.”

“With very little data on the hemp industry available to state and federal policymakers, many policies do not realize the size and scale of the hemp industry. In fact, the entire U.S. hemp industry (fiber, grain, seeds and cannabinoids) has a TAM of more than $175 billion. This is twice the size of the U.S. poultry market and is 600% larger than the legal U.S. cannabis market ($29.1 billion). At $38.7 billion, the hemp-derived cannabinoid market represents 22% of the overall hemp market.” Whitney Economics added.

“In the 2026 report, the self-reported survey data indicates that if federal legislation passed in 2025 remains in place, only 8.5% of all remaining cannabinoid products would be available for sale, eliminating even non-intoxicating products containing CBD. Respondents indicated that more than 70% of businesses will either close or be forced to relocate out of the country. If projected to the entire U.S. market, employment would decline by 225,861 workers, with $8.9 billion in lost wages. The total negative impact across all hemp sectors would be substantial, and if realized in full, it would result in a reduction of $86.6 billion in lost economic output in the U.S. economy.” the press release continued.

“Given the recent federal and state legislative changes, the risks identified by the industry are substantially higher than in 2023,” Whitney said. “These changes are impacting growth, employment and tax revenue opportunities, and improved federal regulatory stewardship is required to balance public safety with continued economic growth.”

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.