Whitney Economics (WE), a global leader in cannabis and hemp business consulting, data, and economic research, today announced it has released a U.S. hemp cannabinoid report for 2026.

Data provided by hemp operators in 35 states indicate a profitable, growing industry that is adapting to expanding state regulations. At $38.7 billion in Total Addressable Market (TAM) value, with an estimated 350,000 jobs earning $13.9 billion in wages, the hemp-cannabinoid sector is a significant contributor to the U.S. economy and is demonstrating a positive impact on state economies as well. However, stricter state and federal regulations set to be enacted in November threatens to reduce retail revenues by $28.3 billion, displacing 225,000 jobs and reducing state sales tax potential by $2.1 billion, effectively eliminating the majority of the nation’s 50,000 hemp operators.

“The U.S. hemp industry is generally healthy, robust, and growing,” Whitney Economics founder and chief economist Beau Whitney said. “But strict and unrealistic regulations passed this year threaten to effectively put three-quarters of its operators out of business.”

Whitney Economics was asked to refresh its 2023 industry analysis and to conduct an economic impact analysis related to the changes to state and federal policies on the hemp cannabinoid industry. The results of the survey, conducted in June and July 2026, are summarized in this report. The national survey inputs indicated that the hemp-derived cannabinoid industry total addressable market (TAM) has grown 36% to $38.7 billion since 2023.

With very little data on the hemp industry available to state and federal policy makers, many policies do not realize the size and scale of the hemp industry. In fact, the entire U.S. hemp industry (fiber, grain, seeds and cannabinoids) has a TAM of more than $175 billion. This is twice the size of the U.S. poultry market and is 600% larger than the legal U.S. cannabis market ($29.1 billion). At $38.7 billion, the hemp-derived cannabinoid market represents 22% of the overall hemp market. Despite this relatively small amount of market share, hemp-derived cannabinoids have been the subject of policy discussions throughout the United States.

Over the past few years, the focus on hemp cannabinoids had intensified significantly. In 2025, the U.S. Congress attempted to address the lack of federal cannabinoid regulation by passing laws that redefined hemp more strictly than its original Farm Bill definition in 2018. The legislation also set limits on the amount of THC per container and set limits on intermediary product THC content. The laws also mandated that the FDA provide a list of potentially intoxicating compounds so that operators and state regulators could better understand the legal limits of the many compounds present in the hemp plants and products. It is notable that the FDA is delinquent in publishing their list to Congress, thereby handcuffing Congress’s ability to learn more about this sector and any potential consumer risks.

The risks extend well beyond the consumer. When the federal legislation was passed, hemp operators realized that the laws were so strict that they threatened to produce negative externalities in the fiber, grains and seed industries as well. This would impact industries not remotely related to hemp-derived cannabinoids. While there was much speculation, there was very little data available to assess the impact. A refresh of the 2023 survey was necessary to enable policy makers to make more informed, data-driven decisions.

In the 2026 report, the self-reported survey data indicates that if federal legislation passed in 2025 remains in place, only 8.5% of all remaining cannabinoid products would be available for sale, eliminating even non-intoxicating products containing CBD. Respondents indicated that more than 70% of businesses will either close or be forced to relocate out of the country. If projected to the entire U.S. market, employment would decline by 225,861 workers, with $8.9 billion in lost wages. The total negative impact across all hemp sectors would be substantial, ad if realized in full, it would result in a reduction of $86.6 billion in lost economic output in the U.S. economy.

“Given the recent federal and state legislative changes, the risks identified by the industry are substantially higher than in 2023,” Whitney said. “These changes are impacting growth, employment and tax revenue opportunities, and improved federal regulatory stewardship is required to balance public safety with continued economic growth.”

For more information about hemp and marijuana data or for a copy of this report, please contact Whitney Economics at beau@whitneyeconomics.com or download the report here: whitneyeconomics.com/reports

About Whitney Economics

Portland, Oregon-based Whitney Economics is a global leader in cannabis and hemp business consulting, data, and economic research, supporting hemp and cannabis operators, investors and regulators. Whitney Economics does not take a position on the legalization of cannabis, nor does it take positions on proposed legislation. Visit whitneyeconomics.com.

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