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.
The economic analysis comes at an inflection point as Texas Senate Bill 3, which would ban most hemp-derived products in the state, passed the Senate with a 24-7 vote last week. The bill would prohibit all hemp-derived cannabinoids except CBD and CBG while imposing annual fees of $10,000 for manufacturers and $20,000 for retail locations.
“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 board member 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.”
Industry folks dispute the state’s fiscal assessment that only about 10% of businesses would be affected by the legislation.
“It will cost the state a minimum of like $760 million in terms of lost sales tax revenue and unemployment payments,” Cabrera previously told Green Market Report. “You’re talking about 50,000 people on unemployment.”
The industry’s hopes now rest with the Texas House, where advocates are backing an alternative bill, HB4242, which they describe as a “reasonable regulation bill” that would maintain the hemp market while imposing safety standards.
The economic analysis, conducted by Whitney Economics, builds on its 2023 study of the legal Texas hemp industry. The updated report shows retail revenue reached $4.3 billion in 2025, up from $3.3 billion two years earlier, showing sustained consumer demand despite regulatory uncertainty that includes potential barb trading in the state Supreme Court.
According to the report, industry-wide wages rose to $2.1 billion in 2025, up from $1.6 billion in 2023, with hourly pay increasing across all sectors.
The Texas hemp-cannabinoid market has established itself as a significant economic force, with more than 8,500 businesses operating across the state. The report notes that 72% of these businesses reported profitability this year.
Much of the growth has come from the retail sector, which accounts for $4.3 billion in revenue and 41,359 jobs. The manufacturing sector contributes $956 million in revenue and employs 7,981 workers, while the wholesale sector generates $309 million and supports 4,043 jobs.
Texas lawmakers are considering legislation, including Senate Bill 3, that would ban all low-dose hemp-derived THC products. The report estimates such regulations could cost the industry $7.5 billion and eliminate more than 40,000 jobs.
The findings were based on a 22-question survey conducted over six weeks in early 2025, reaching around 4,500 businesses representing about 53% of Texas’ estimated hemp-related businesses. Whitney Economics supplemented the self-reported data with independent research and applied a 2.4x multiplier effect to estimate the industry’s broader economic impact.
The report also comes as state legislatures across the country debate how to regulate hemp-derived cannabinoids, particularly those containing “intoxicating” amounts of THC. The 2018 Farm Bill legalized hemp production federally, but individual states maintain authority over how hemp products can be manufactured and sold within their borders.
The report posits the sector contributes $10.3 billion to Texas’ economy, as legislation moving through the statehouse could wipe out thousands of jobs. Read More
