New Economic Report on Texas Hemp Market Finds Rising Wages and Job Growth Amid Retail Expansion

Proposed Regulations Could Threaten Hemp’s $10B Contribution to Texas Economy

/EIN News/ -- AUSTIN, Texas, March 25, 2025 (GLOBE NEWSWIRE) -- A newly released economic report, Hemp-Derived Cannabinoids in the Lone Star State: A Revisit of the Economic Impact Analysis of Cannabinoid Retail in Texas, reveals that the hemp industry is a major contributor to the Texas economy, generating $5.5 billion in annual sales with an estimated tax revenue of $268 million.

Developed by Whitney Economics, this latest report builds upon its 2023 analysis of the legal Texas hemp industry, examining revenues, employment, wages and the market's economic potential. The 2025 update places additional emphasis on the potential impact of proposed legislation that would prohibit the sale of hemp-derived cannabinoid products. Key findings include:

• Retail Growth: In 2025, retail revenue reached $4.3 billion, up from $3.3 billion in 2023, highlighting sustained consumer demand.
• Industry Expansion: Total employment in the hemp industry grew to 53,300 jobs in 2025, an increase of 3,200 from 50,100 in 2023.
• Higher Pay: Industry-wide wages rose to $2.1 billion in 2025, up from $1.6 billion in 2023, with hourly pay increasing across all sectors.
  

Regulatory Risks Could Cost Texas Billions

Proposed state regulations, including Texas SB3, which seeks to ban all hemp-derived THC products, could cost the industry $7.5 billion and 40,201 jobs, according to the latest data.

"Texas’ hemp industry is not only growing but also providing thousands of jobs and billions in economic impact," said Cynthia Cabrera, chief strategy officer at Hometown Hero and president of the Texas Hemp Business Council. "However, proposed regulations that restrict or ban hemp-derived cannabinoid products will devastate small businesses, eliminate tens of thousands of jobs and strip billions from the Texas economy. Lawmakers must consider the real economic consequences before making decisions that could shatter this thriving industry."

The Texas hemp-cannabinoid market is home to more than 8,500 businesses, with 72% reporting profitability this year. The 2025 report further estimates the industry's total revenue at $5.5 billion* and its overall economic impact at $10.3 billion. Other sector findings include:

Retail Sector:

• Revenue: $4.3 billion
• Jobs: 41,359
• Wages: $1.53 billion
• Sales Tax Revenue: $268 million

Wholesale Sector:

• Revenue: $309 million
• Jobs: 4,043
• Wages: $190 million

Manufacturing Sector:

• Revenue: $956 million
• Jobs: 7,981
• Wages: $374 million
  

“Hemp products are more than just an economic driver, they enhance the lives of countless adult Texans and veterans seeking relaxation and wellness," added Cabrera. "Since 2019, the Texas hemp market has operated under strict regulations, including licensing, comprehensive testing, inspections, and proper labeling with ISO-certified lab reports. As the debate continues in the Texas Legislature, we remain optimistic that cooler heads will prevail, and lawmakers will see the value of a well-regulated market. That’s why our industry supports further responsible measures, such as limiting sales to individuals 21 and older, requiring child-resistant packaging, and establishing setbacks from schools for adult-use sales. With the right safeguards, we can protect consumers, preserve jobs, and ensure the industry’s continued growth."

*Gas station sales and revenue of larger manufacturers are not represented in the 2025 survey findings.

Note: Figures have been rounded to the nearest whole number.

Study Methodology

Hemp-Derived Cannabinoids in the Lone Star State: A Revisit of the Economic Impact Analysis of Cannabinoid Retail in Texas was commissioned by the Texas Hemp Business Council and its founding member, Hometown Hero. The data was gathered through a 22-question survey by Whitney Economics, targeting hemp industry operators, including retailers, manufacturers and distributors. Conducted over six weeks in early 2025, the survey reached over 4,500 businesses, representing about 53% of Texas' estimated 8,500 hemp-related businesses. Whitney Economics supplemented the self-reported data with independent research, cross-referencing responses with external sources and insights from cannabis and hemp markets. To estimate the industry's broader economic impact, a 2.4x multiplier effect was applied.

About Whitney Economics

Whitney Economics is a research and consulting firm specializing in economic analysis for the cannabis and hemp industries. Founded by Beau Whitney, the firm provides data-driven insights, policy recommendations and market forecasts to businesses, investors and policymakers. More information can be found by visiting https://whitneyeconomics.com/.

About Hometown Hero        

Headquartered in Austin, Texas, Hometown Hero manufactures and distributes a variety of hemp-derived products, such as Delta-9 THC, Delta-8 THC, CBD, CBDA + CBGA, among others. Founded in 2015 by Lukas Gilkey and Lewis Hamer, the company donates a portion of all proceeds to various charities and organizations that support veterans. For more information, visit https://hometownhero.com/ or follow the brand on Twitter and Instagram @HometownHeroATX.     

About the Texas Hemp Business Council

The Texas Hemp Business Council is an industry organization dedicated to promoting the hemp-based cannabinoid industry in Texas, while advocating for consumer safety, education and stakeholder engagement. More information can be found by visiting https://texashempbusinesscouncil.com.

Media Contact:

George Medici/Natalie Mu
PondelWilkinson Inc.
310.279.5968/310.279.5980
Gmedici@pondel.com/nmu@pondel.com