Texas Hemp Market Economic Report Shows Increasing Wages and Job Growth

Image | adobe.stock/squarelogo

A recent press release discussed a newly released economic report from Whitney Economics, called “Hemp-Derived Cannabinoids in the Lone Star State: A Revisit of the Economic Impact Analysis of Cannabinoid Retail in Texas”, which found that the hemp industry in Texas is a “major contributor” to the Lone Star State’s economy (1). In Texas, the hemp industry creates $5.5 billion in annual sales with a tax revenue anticipated ot reaching $268 million.

Whitney Economic’s report begins from the organization’s 2023 analysis from the legal Texas hemp industry. It looks over wages, employment, revenues, and the hemp market’s economic potential (1). Whitney Economics updated the report for 2025 which showed the possible effects of legislation that has been proposed and could “prohibit the sale of hemp-derived cannabinoid products,” (1).

As mentioned in the press release, key findings in the report showed (1):

• Retail Growth: In 2025, retail revenue reached $4.3 billion, up from $3.3 billion in 2023, highlighting sustained consumer demand.
• Industry Expansion: Total employment in the hemp industry grew to 53,300 jobs in 2025, an increase of 3,200 from 50,100 in 2023.
• Higher Pay: Industry-wide wages rose to $2.1 billion in 2025, up from $1.6 billion in 2023, with hourly pay increasing across all sectors.

One of the proposed pieces of legislation that could harm Texas’s hemp industry is a bill called SB3 which its’ intentions are to place a ban on all hemp-derived tetrahydrocannabinol (THC) products. According to the press release (1), this could hurt the industry by costing it $7.5 billion, as well as 40,201 jobs.

“Texas’ hemp industry is not only growing but also providing thousands of jobs and billions in economic impact,” Cynthia Cabrera, chief strategy officer at Hometown Hero and president of the Texas Hemp Business Council, said (1). “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.”

As of 2025, the hemp-cannabinoid market in Texas contains more than 8,500 businesses. Of those businesses, 72% of them have reported profitability this year (1). Whitney Economics 2025 report anticipates seeing the Lone Star States’ total revenue reach $5.5 billion and have an overall economic impact of $10.3 billion.

The press release details sector findings from the report (1):

Retail Sector:

• Revenue: $4.3 billion
• Jobs: 41,359
• Wages: $1.53 billion
• Sales Tax Revenue: $268 million

Wholesale Sector:

• Revenue: $309 million
• Jobs: 4,043
• Wages: $190 million

Manufacturing Sector:

• Revenue: $956 million
• Jobs: 7,981
• Wages: $374 million

“Hemp products are more than just an economic driver, they enhance the lives of countless adult Texans and veterans seeking relaxation and wellness,” Cabrera added (1). “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.”

Founding member, Hometown Hero, and the Texas Hemp Business Council authorized Whitney Economics report (1). To acquire data, Whitney Economics utilized a 22-question survey that looked into hemp industry operators, manufacturers, retailers, and distributors and took place over six weeks beginning in 2025. According to the press release (1), “the survey reached over 4,500 businesses, representing about 53% of Texas' estimated 8,500 hemp-related businesses.” Whitney Economics also “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,” (1).

Reference

1. Hometown Hero CBD. New Economic Report on Texas hemp market finds rising wages and job growth amid retail expansion https://www.globenewswire.com/news-release/2025/03/25/3048507/0/en/New-Economic-Report-on-Texas-Hemp-Market-Finds-Rising-Wages-and-Job-Growth-Amid-Retail-Expansion.html (accessed Mar 27, 2025).