New Hemp Definition in 2025 Bill Impacts Intoxicating Hemp Market
The FY26 Agriculture Appropriations Bill redefines hemp, imposing stricter regulations that could alter the future of the intoxicating hemp market
Key Points
- 1FY26 Agriculture Appropriations Bill redefines hemp with stricter THC limits
- 2Intoxicating hemp market projected to grow before regulatory changes
- 3Edibles and beverages were leading segments in the hemp market
- 4New regulations may shift intoxicating hemp products to dispensaries
- 5Top markets for intoxicating hemp included Texas, Florida, and New York
The passing of the FY26 Agriculture Appropriations Bill in November 2025 has redefined hemp, introducing stricter regulations that could significantly impact the intoxicating hemp market. The bill specifies that hemp must have a total tetrahydrocannabinols concentration of no more than 0.3 percent on a dry weight basis, and finished hemp-derived products cannot exceed 0.4 mg of total THC and THCA per container. This change in definition and regulation aims to address the controversial market of intoxicating hemp products
Before the bill's passage, market research firm BDSA anticipated a steady growth for intoxicating hemp, projecting a compound annual growth rate of 5.5% from $4.6 billion in 2025 to $5.7 billion by 2029. Edibles and beverages were leading the market, capturing 27% and 21% shares respectively. The primary markets included Texas, Florida, New York, Illinois, and North Carolina. However, the new regulations could stifle this growth by closing the loophole that previously allowed these products to proliferate
The future of intoxicating hemp remains uncertain as manufacturers face the potential shift of products to dispensaries due to state regulations. This transition could lead to decreased market incentives, as dispensaries offer a smaller market compared to convenience and liquor stores. The industry must now navigate these changes, which could reshape the landscape of hemp-derived products