The economy
Why it matters
Hemp is not a fringe business in Texas. It is farms, factories, stores and paychecks across the state.
Industry-commissioned estimates (Whitney Economics, 2025). These figures come from one report, commissioned by an industry group.[1]
The size of the industry
$5.5B
annual industry revenue
about $4.3B of it at retail
$10.2B
total economic activity in Texas
$267.7M
state sales tax per year from retail sales
at 6.25%; excludes other taxes
53,000
Texans employed
about $2.1B in wages
8,500+
hemp-related Texas businesses
Industry-commissioned estimates (Whitney Economics, 2025).
What a ban would cost
The same report modeled what happens under a ban or severe restrictions, like the SB 3 ban Texas lawmakers passed in 2025 and the governor vetoed. These are projections, not counts.[1][2]
~6,350
business failures projected under a ban or severe restrictions
~40,201
workers projected to be displaced under a ban or severe restrictions
Regulation works better
Texas already requires age checks, lab testing, labeling and licensing. Those rules protect consumers and keep a legal market in place. A ban throws that away and leaves the demand to sellers who follow no rules at all.
Sources
- An Economic Impact Analysis of the Hemp Cannabinoid Industry in Texas (2025 edition). Whitney Economics (March 2025, 2024 data), published by the Texas Hemp Business Council.
- Texas Hemp & THC Laws in 2026: What Changed, What's Legal and What Happens Next?. Texas Cannabis Coalition blog, Aug. 13, 2026.