A newly released economic report 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.
Hemp field.
Developed by Whitney Economics, the report finds that “in 2025, retail revenue reached $4.3 billion, up from $3.3 billion in 2023, highlighting sustained consumer demand.” Total employment in the hemp industry “grew to 53,300 jobs in 2025, an increase of 3,200 from 50,100 in 2023”, according to a press release sent today.
The report found that industry-wide wages rose to $2.1 billion in 2025, up from $1.6 billion in 2023, with hourly pay increasing across all sectors.
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:
“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.”
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.
