Economic Report Shows Texas Cannabis Businesses Surpassing $8B in Revenue

In Texas, the hemp industry has had a large impact on the economy. It has assisted in growing manufacturing, agriculture, and retail sectors, according to a recent Whitney Economics report (1). The report is called, “Hemp Derived Cannabinoids in the Lone Star State: An Economic Impact Analysis of Cannabinoid Retail in Texas,” and assessed that cannabis businesses produced more than $8 billion in revenue and employed over 50,000 workers. Also, hemp-derived cannabinoid product extractors and manufacturers have invested more than $1 billiion into Texas infrastructure with the plans to create and grow operations all over the state.

“It is vital that Texas continues to support the hemp industry, which has become a key component of the state’s overall economy,” stated Cynthia Cabrera, chair of the cannabinoids council of the Hemp Industries Association and chief strategy officer at Austin-based Hometown Hero CBD (1). “The results of this study demonstrate the positive economic and social impact of hemp in Texas, and that its small businesses and farmers need to be protected to continue to thrive, providing jobs and tax revenue.”

Yahoo! Finance disclosed some of what was reported in the study (1):

• Between $19.1 and $22.4 billion in economic activity is generated by the local hemp-derived cannabinoid retail, manufacturing and wholesale sectors.
• The industry pays upwards of $1.6 billion in annual worker wages.
• The hemp sector has created or expanded more than 5,000 businesses in the state.

“This landmark study affirms the true value the hemp industry provides our state, from creating jobs and supporting livable wages to fostering business expansion and product innovation,” said Ilissa Nolan, executive director of the Texas Hemp Coalition, a nonprofit dedicated to hemp advocacy and education (1).

Cannabis and hemp products are able to be used in various ways such as, for a pain reliever, relaxation, and post-traumatic stress disorder (PTSD). Veterans have begun to learn that cannabidiol (CBD) can be a tool among other cannabinoids and terpenes to help them deal with their PTSD and other health ailments and are able to wean off their opioids and other various pharmaceutical medications.

“Since the passage of the Agricultural Improvement Act of 2018, better known as the Farm Bill, demand for hemp-derived cannabinoids has boomed in Texas and across the country,” commented J.D. McCormick, chair of the American Healthy Alternatives Association (1). “We continue to fight at the national and state levels to ensure that these products are easily available to adult consumers as alternatives to pharmaceuticals, alcohol and to improve their overall wellbeing.”

This recent economic study was a first-of-its-kind for the Texas market and was commissioned by Hometown Hero CBD (1). Data from this report was received by a targeted survey of several hemp operators. This included distributors, retailers, manufacturers, smoke and vape shops, CBD stores, and gas stations. The 16-question survey by Whitney Economics was performed during a 6-week period in the second quarter of 2023 and was sent to more than 2,560 (estimated 52.7%) of the 5,033 CBD, cannabinoid, and hemp distributors, manufacturers, and retailers in Texas (1).

Reference

1. Texas Cannabusinesses Surpass $8B in Revenue, New Economic Report Says https://finance.yahoo.com/news/texas-cannabusinesses-surpass-8b-revenue-112000233.html#:~:text=The%20Whitney%20Economics%20report%2C%20titled,employed%20more%20than%2050%2C000%20workers. (accessed Aug 11, 2023).