Horton: Hemp ban hurts consumers and farmers
In a concerning development for the hemp industry, a recent funding package aimed at reopening the federal government includes a provision that could criminalize hemp, a sector that has flourished since its legalization in 2018. This proposed wholesale ban threatens to undermine a burgeoning market valued at nearly $30 billion, negatively impacting farmers, small businesses, and consumers alike. With the popularity of hemp-derived products, particularly beverages infused with cannabinoids like CBD and THC, on the rise, such a ban could push consumers toward unregulated alternatives, compromising safety and transparency. The hemp beverage market alone is projected to grow from $71.7 million in 2023 to over $1 billion by 2028, driven largely by changing consumer preferences and a shift toward sober-curious lifestyles, particularly among Gen Z consumers.
The bipartisan Farm Bill of 2018 was a significant milestone, removing hemp and its derivatives from the federal Controlled Substances Act and paving the way for a thriving industry that now supports over 320,000 jobs and contributes approximately $28.4 billion to the economy. The recent surge in interest for hemp-infused drinks is a testament to this growth, with platforms like DoorDash reporting a rapid increase in merchants offering these products. However, the industry is not without its challenges; concerns about safety, particularly regarding chemically altered THC products, have led to calls for clearer regulations. A coalition of 39 state attorneys general has urged Congress to clarify the definition of hemp, mistakenly grouping all hemp-derived THC products with potentially hazardous synthetics.
To address these safety concerns while preserving the integrity of the hemp market, lawmakers should engage all stakeholders—including farmers, retailers, and public health experts—to develop a comprehensive federal framework. This framework should establish clear guidelines on age restrictions, testing, labeling, and enforcement, ensuring that consumers are protected without punishing legitimate businesses or disrupting the livelihoods of those involved in the hemp industry. A balanced approach could foster a safe and thriving market, allowing the hemp industry to continue its trajectory of growth and innovation while safeguarding public health.
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
