March 25, 2025 | Galaxy Groves Blog
Big news out of Texas: a newly released economic report reveals the state's hemp industry is booming, driving massive growth in jobs, wages, and revenue. But just as this green wave gains serious momentum, proposed regulations are threatening to undo it all.
📈 A $10.3 Billion Industry—And Still Growing
According to the updated Hemp-Derived Cannabinoids in the Lone Star State report by Whitney Economics, Texas’ hemp-derived cannabinoid market is no small side hustle—it’s a heavyweight economic engine:
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💰 $5.5 billion in total industry revenue
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💼 53,300 jobs supported statewide
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💵 $2.1 billion in industry wages
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🛒 $4.3 billion in retail sales
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💸 $268 million in sales tax revenue
This growth isn’t a flash in the pan—it’s a steady rise from $3.3B in retail sales in 2023 to $4.3B in 2025. Jobs in the sector have also climbed, up 3,200 since 2023.
🚫 Proposed Ban Could Wipe Out $7.5B & 40,000 Jobs
But here’s the kicker: Texas Senate Bill 3 (SB3) threatens to ban hemp-derived THC products. If passed, the economic fallout could be devastating—up to $7.5 billion in losses and 40,201 jobs wiped out, according to the report.
“This industry is providing real jobs, real wages, and real economic power to Texas,” said Cynthia Cabrera, President of the Texas Hemp Business Council and Chief Strategy Officer at Hometown Hero. “Regulations that eliminate access to these products could shatter thousands of small businesses overnight.”
👥 Who’s Powering This Market?
Texas’ hemp sector includes over 8,500 businesses, and a staggering 72% reported profitability in 2025. From independent retailers to manufacturers and wholesalers, the ecosystem is thriving—and built on strict compliance standards.
Breakdown by Sector:
| Sector | Revenue | Jobs | Wages |
|---|---|---|---|
| Retail | $4.3 billion | 41,359 | $1.53 billion |
| Wholesale | $309 million | 4,043 | $190 million |
| Manufacturing | $956 million | 7,981 | $374 million |
🛡️ Industry Backs Responsible Regulation
Far from opposing regulation, industry leaders support safeguards: raising the purchase age to 21+, child-resistant packaging, and distance requirements from schools.
“Texans—especially veterans—rely on these products for wellness, calm, and relief,” Cabrera added. “Let’s not throw away an industry that’s working just because we don’t fully understand it yet.”
📚 About the Study
Commissioned by the Texas Hemp Business Council and led by Whitney Economics, the study surveyed over 4,500 businesses across the state. It uses a 2.4x multiplier to calculate the broader economic ripple effect across Texas.
🌐 Want to Learn More?
Galaxy Groves stands with small businesses, consumers, and veterans who depend on access to legal, well-regulated hemp products. As the legislative debate continues, we urge Texans to stay informed and speak up.
Stay tuned for more updates—and as always, stay grounded 🌿
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