Horton: Hemp ban hurts consumers and farmers
In a controversial move included in a recent funding package aimed at reopening the federal government, lawmakers have proposed a sweeping ban on hemp-derived products, a sector that has flourished since the legalization of hemp in 2018. This proposed legislation threatens to upend the nearly $30 billion hemp industry, which has become a vital component of the U.S. economy, supporting over 320,000 jobs and generating approximately $1.5 billion in state tax revenue annually. The implications of such a ban would be profound, pushing consumers towards unregulated markets and jeopardizing the livelihoods of farmers and small businesses that have thrived under the current legal framework.
The rise in popularity of hemp-derived beverages, particularly among younger consumers, underscores the urgency of this issue. As health-conscious choices gain traction, products infused with low levels of cannabinoids like CBD and THC have emerged as appealing alternatives to traditional alcoholic beverages. A recent survey revealed that 53% of Gen Z individuals plan to reduce their alcohol consumption in 2024, with nearly 19% abstaining from alcohol altogether. The U.S. hemp beverage market, currently valued at approximately $71.7 million, is projected to soar past $1 billion by 2028, highlighting a significant shift in consumer preferences and the economic potential of this sector.
Despite legitimate safety concerns surrounding certain hemp products, particularly those containing chemically altered THC, a blanket ban would do far more harm than good. This perspective was echoed by John Horton, head of North America Public Policy at DoorDash, who argues for a balanced approach that involves all stakeholders in the hemp debate. He advocates for the establishment of clear federal guidelines that address safety without stifling legitimate businesses. By convening farmers, retailers, public health experts, and regulatory authorities, lawmakers could create a comprehensive framework that ensures consumer safety while preserving an essential industry that has become a pillar of the American 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
