Even without robust federal regulations, the U.S. hemp industry in 2022 was larger than all state marijuana markets, and it roughly equaled sales for craft beer nationally, according to a new report.
The research firm Whitney Economics published the report last week, offering a comprehensive assessment of the hemp industry that’s evolved since the crop was federally legalized under the 2018 Farm Bill.
While there’s been frustration within the hemp market as businesses grapple with regulatory challenges, primarily related to cannabinoid products like CBD, the report says that the industry saw about $28.4 billion in sales of those products last year.
“For context, hemp-derived cannabinoid sales nationally were greater than total legal sales of medical and adult-use cannabis in 2022,” it says. With most states having already legalized marijuana in some form, that may come as a surprise.
Notably, the hemp-based cannabinoid market also handily competes with the far more established craft beer industry. The national total for craft beer sales was $28.4 billion in 2022, the same amount as hemp-derived cannabis products, according to the American Beer Association.
“Currently, the total demand for hemp-derived cannabinoids is valued in excess of $28 billion and supports the employment of 328,000 workers, who earn $13 billion in wages. Overall, the total economic impact of the hemp-derived cannabinoid industry on the U.S. economy is in excess of $79 billion,” Whitney Economics says. “While they may seem large, these estimates are actually conservative, because they do not account for demand and employment from gas stations, grocery stores and convenience stores.”
Based on sales tax on hemp products alone, the firm assessed that states generated $1.5 billion in tax revenue collectively from the crop in 2022.
Beau Whitley, author of the report, told Marijuana Moment that the data is critical especially as state lawmakers and regulators move to ban or restrict certain cannabinoid products like delta-8 THC.
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