Texas Hemp Market Worth An Estimated $5.5 Billion
April 22, 2025Hemp-derived products generate roughly $5.5 billion in Texas, according to a new report from Whitney Economics covering the Lone Star State’s production, wholesale, and retail sectors. Whitney’s data comes from a survey of nearly three hundred business operators working in various parts of the hemp-derived industry in Texas during the first quarter of this year.
Retail sales make up the bulk of state’s hemp-derived revenue, with over 7,500 retailers generating $4.3 billion in sales. Manufacturing is the second largest hemp-derived sector in Texas, bringing in nearly $960 million in revenue. Wholesale contributes just over $300 million in revenue, according to Whitney’s analysis. The group notes that this is a conservative estimate for the state and excludes unlicensed sales in convenience channels and gas stations. Overall, Whitney estimates that the hemp industry generates over $10 billion in economic activity across the state.
According to the survey, Texas hemp-derived businesses are largely thriving, with 72% of respondents saying that their businesses are profitable, with a further 21% breaking even, and only 7% indicating that they are not profitable. By profitability, Texas’s hemp-derived businesses exceed the U.S. Chamber of Commerce’s estimation that 66% of small businesses are profitable.
From a category perspective, edibles, THCA flower, and vapes are the three most popular form factors in the state, making up over 75% of sales. Edibles, at 26.4% of retail sales, take the lead, with THCA flower in second at 25.3%, and vapes in third at 24.3%. Beverages are a distant fourth, making up 18.6% of retail sales.
While sales of intoxicating hemp products continue to grow, non-intoxicating CBD remains the most popular cannabinoid in Texas at retail, seeing over $600 million in sales. Among intoxicating products, THCA is the most popular, with state retail sales estimated at $571 million, followed closely by Delta-9 THC at $567 million. Non-intoxicating cannabinoids CBG and CBN are also quite popular in Texas, with each generating over $450 million in retail sales.
Retailers across the state have been bullish, with major chains like Spec’s and Total Wine offering a variety of hemp-derived THC seltzers, sodas, and spirits. Still, the longer-term outlook of the category remains uncertain in the state, whose senate recently voted to ban most hemp-derived consumables. The effort to clamp down on the category is being led by Republican lieutenant governor Dan Patrick.—Shane English
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