“For many adults, a hemp-derived THC beverage is their first cannabis product.”
By Joe Gerrity, Crescent Canna
Three years ago, hemp-derived THC beverages were a regulatory curiosity—a byproduct of the 2018 Farm Bill that few outside the cannabis world noticed.
Today, they represent a multibillion-dollar national market, sold in mainstream retail alongside beer and hard seltzer, and widely viewed as the fastest-growing segment of the broader cannabis industry.
That growth is now on the verge of being erased.
Congress recently voted to prohibit hemp-derived THC products nationwide—not through comprehensive cannabis legislation, but through language inserted into a federal appropriations bill. Unless lawmakers reverse course, products that have been federally legal for years will become illegal this November, dismantling an industry Congress itself enabled in 2018.
Hemp beverages are no longer fringe. They are a visible bridge between the regulated marijuana industry and everyday consumer retail.
From Niche to National Footprint
In just a few years, hemp THC drinks have moved from specialty shelves to prominent placement in national chains. Retailers now dedicate full cooler sets and endcaps to the category. In states like Minnesota, some liquor stores report hemp beverages accounting for an estimated 15 percent to 20 percent of sales.
NielsenIQ’s decision to formally track the segment marked a turning point: hemp-derived THC beverages are now measured like major consumer packaged goods—because that’s what they have become.
For many retailers, these products are not novelty items. They drive repeat traffic, attract new shoppers and sit at the intersection of cannabis demand and conventional retail access.
This is the first time cannabis products have scaled nationally through traditional distribution channels without relying on the state-licensed marijuana system.
A Gateway to Mainstream Cannabis Consumption
Consumer behavior helps explain the rise.
Alcohol consumption trends have softened, while interest in alternative forms of social drinking has grown. Hemp-derived THC beverages offer familiar formats, predictable dosing and an entry point for adults who may not visit dispensaries. A recent survey of our customers found that 77 percent have reduced alcohol use since trying THC drinks.
More importantly for the cannabis industry, THC beverages normalize cannabinoid consumption in settings where cannabis historically had no presence—grocery stores, music venues, bars and restaurants.
For many adults, a hemp-derived THC beverage is their first cannabis product.
That matters. It expands the total addressable market for cannabinoids, introduces new demographics to THC and helps destigmatize cannabis use in everyday social settings. Hemp beverages have functioned as a national market-expansion channel for the cannabis sector.
This traces directly to the 2018 Farm Bill, which legalized hemp without distinguishing between intoxicating and non-intoxicating cannabinoids derived from compliant plants. Businesses built supply chains, compliance programs and distribution networks based on that framework.
The Policy Reversal
The appropriations bill passed in November 2025 alters the federal definition of hemp in a way that would outlaw most hemp-derived products, including all THC beverages currently sold in regulated retail environments. The provision advanced through the spending process without any public hearings or debate.
The economic stakes are significant. Analysts estimate hundreds of thousands of jobs and tens of billions in market activity tied to the broader hemp economy. Unlike state-licensed marijuana operators, hemp businesses operate under federal legality, investing in the category with the understanding that Congress had already spoken.
Many states, like Louisiana, have established regulated markets for hemp-derived THC products—including age restrictions, potency limits, testing requirements, packaging standards and more. The new federal language would override and completely dismantle those state systems.
Why This Matters for the Cannabis Industry
Hemp beverages have accelerated the cultural and commercial normalization of THC in ways the marijuana industry has long sought but struggled to achieve under federal prohibition. They have expanded where cannabis products are sold, who uses them and how they are socially integrated.
Eliminating this segment would further fragment the cannabis industry and send a destabilizing message: business models built under one federal framework can be undone through appropriations language without a comprehensive policy transition.
If policymakers outlaw the regulated market for federally legal, low-potency hemp THC products, what chance is there for broader cannabis legalization?
A regulatory structure—not prohibition—is what aligns with how states already manage both marijuana and hemp products.
Rescheduling vs. Hemp Prohibition
At the same time the Trump administration is pursuing Schedule III rescheduling for marijuana, Congress is moving to prohibit hemp-derived THC that was explicitly legalized under federal statute.
The contrast is sharp: one pathway expands legitimacy for state-legal cannabis, while another removes it from a federally lawful and widely accessible consumer market.
For operators and investors, that contradiction creates uncertainty across the entire cannabis landscape, not just the hemp segment.
What Happens Next
The future of hemp beverages depends on whether lawmakers revisit the issue and replace prohibition with a regulatory model that acknowledges both consumer demand and existing state frameworks.
The question isn’t whether adults want these products. It’s whether federal lawmakers will allow them to keep accessing them.
The answer will shape not just one product category, but the trajectory of cannabis normalization in the United States.
Joe Gerrity is CEO & co-gounder of Crescent Canna.
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