Horton: Hemp ban hurts consumers and farmers
In a recent development concerning federal funding, a proposed provision aimed at criminalizing hemp has raised significant concerns among industry stakeholders and consumers alike. This provision threatens to undermine a burgeoning $30 billion industry that has thrived since the passage of the 2018 bipartisan Farm Bill, which legalized hemp and certain hemp-derived products. The implications of such a blanket ban are dire, potentially harming farmers, small businesses, and consumers who have come to rely on the safety and transparency of regulated hemp commerce. As the demand for hemp-derived products, particularly beverages infused with cannabinoids like CBD and THC, has surged, the proposed legislation could push consumers towards unregulated markets, ultimately jeopardizing public safety.
The popularity of hemp-derived beverages has skyrocketed, driven by changing consumer preferences, especially among younger generations. A recent survey revealed that 53% of Gen Z respondents planned to drink less alcohol in 2024 compared to the previous year, with nearly 19% abstaining from alcohol altogether. This shift has opened the door for innovative products like hemp-infused seltzers and mocktails, which offer alcohol-free alternatives while still providing the desired effects of cannabinoids. The U.S. hemp beverage market, valued at an estimated $71.7 million in 2023, is projected to exceed $1 billion by 2028, showcasing the robust growth of this sector. Businesses such as DoorDash have already begun capitalizing on this trend, with thousands of merchants offering hemp-derived products to consumers over 21, thereby generating revenue and supporting local economies.
However, safety concerns regarding hemp products persist, particularly regarding chemically altered THC variants. Recently, a coalition of 39 state attorneys general mistakenly linked all hemp THC products to potentially hazardous synthetic alternatives, prompting calls for clearer definitions and regulations. While addressing these safety concerns is crucial, a wholesale ban on hemp would be counterproductive. Instead, lawmakers are encouraged to engage with stakeholders—including farmers, retailers, and public health experts—to establish a comprehensive federal framework that includes clear guidelines on age restrictions, testing, labeling, and enforcement. This approach would aim to protect consumers while allowing legitimate businesses to thrive, ensuring that the hemp industry can continue to contribute significantly to the economy and support over 320,000 jobs across the nation.
Included in the broader funding package to reopen the federal government is a misguided provision criminalizing hemp, a nearly $30 billion industry that has been legal since 2018. A wholesale ban on hemp-derived products is the wrong move. It would harm farmers and small businesses, and push consumers toward unregulated channels and away from the safety and transparency that regulated commerce provides.
Fueled by changing consumer health preferences and evolving federal regulations, the popularity of hemp-derived beverages has exploded in recent years. Infused with low and legal levels of cannabinoids like CBD and THC that derive from the hemp plant, seltzers, sodas and mocktails have provided sober-curious Americans choices from alcohol.
In 2024, the percentage of Gen Zers (those born between 1997 and 2002) who planned to drink less alcohol increased 53% from the year before, according to one survey. Nearly one in five (19%) members of Gen Z don’t consume alcohol at all.
Interest in THC and CBD-infused drinks is a significant part of this movement. Estimated at $71.7 million in 2023, the U.S. hemp beverage market is expected to eclipse $1 billion by 2028.
In 2018, the bipartisan Farm Bill removed hemp and certain hemp-derived products from the federal Controlled Substances Act.
Market forces are speaking loudly. On DoorDash, we started offering hemp-derived products to customers over 21 this year. Almost immediately, several thousand merchants began selling hemp-derived items on our platform, reaching new customers, generating revenue and keeping local employees on the payroll.
From the farmers who grow hemp to the manufacturers and retailers who sell it, legal hemp products have become a crucial pillar of the modern economy. The industry supports more than 320,000 jobs, contributes $28.4 billion to the market, and generates $1.5 billion in state tax revenue annually. A blanket ban will shutter businesses, disrupt livelihoods and destabilize local economies.
To be sure, concerns about hemp safety are not without merit, especially those involving chemically altered THC products, which are not sold through DoorDash. Recently, a group of 39 state attorneys general mistakenly conflated all hemp THC products with potentially dangerous synthetic ones when they urged Congress to clarify the definition of hemp. In addition to banning these synthetic products, Congress should provide clear guidelines to those seeking to play by the rules.
To more broadly address safety concerns, lawmakers would be wise to convene all stakeholders in the debate — farmers, retailers, public health experts and regulatory experts — to create a federal framework. Setting clear rules on age requirements, testing, labeling and enforcement mechanisms could build consensus. The goal should be protecting consumers from harm without eliminating legitimate businesses, punishing farmers and outlawing an entire industry.
John Horton is the head of North America Public Policy at DoorDash/InsideSources
