Horton: Hemp ban hurts consumers and farmers
In a recent development that has raised significant concern among stakeholders in the hemp industry, a provision aimed at criminalizing hemp-derived products has been included in a broader funding package to reopen the federal government. This move threatens to undermine a flourishing industry that has been legal since the passage of the bipartisan Farm Bill in 2018, which removed hemp and certain hemp-derived products from the federal Controlled Substances Act. The hemp market, now estimated at nearly $30 billion, supports over 320,000 jobs and contributes $28.4 billion to the economy, generating $1.5 billion in state tax revenue annually. A wholesale ban on hemp-derived products would not only jeopardize the livelihoods of farmers and small businesses but also push consumers toward unregulated channels, compromising safety and transparency in commerce.
The rising popularity of hemp-derived beverages, such as seltzers and mocktails infused with cannabinoids like CBD and THC, is a testament to changing consumer preferences, particularly among younger generations. A recent survey highlighted that in 2024, the percentage of Gen Zers intending to drink less alcohol increased by 53% from the previous year, with nearly one in five opting out of alcohol altogether. This shift has driven the U.S. hemp beverage market to an estimated $71.7 million in 2023, with projections indicating it could surpass $1 billion by 2028. Companies like DoorDash have recognized this trend, introducing hemp-derived products to their platform and enabling thousands of merchants to reach new customers, thereby stimulating local economies.
While concerns regarding the safety of hemp products—especially those involving chemically altered THC—are valid, the recent push by 39 state attorneys general to conflate all hemp THC products with potentially dangerous synthetic alternatives is misguided. Instead of imposing a blanket ban, lawmakers should focus on creating a comprehensive federal framework that includes input from all stakeholders—farmers, retailers, public health experts, and regulatory authorities. Establishing clear guidelines on age restrictions, product testing, labeling, and enforcement mechanisms could effectively address safety concerns while allowing the legitimate hemp industry to thrive. The goal should be to protect consumers without punishing an entire industry that has become a vital component of the modern economy.
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
