Included in the broader funding package to reopen the federal government is a misguided provision criminalizing hemp, a nearly $30 billion industry that has been legal since 2018. A wholesale ban on hemp-derived products is the wrong move. It would harm farmers and small businesses, and push consumers toward unregulated channels and away from the safety and transparency that regulated commerce provides.
Fueled by changing consumer health preferences and evolving federal regulations, the popularity of hemp-derived beverages has exploded in recent years. Infused with low and legal levels of cannabinoids like CBD and THC that derive from the hemp plant, seltzers, sodas and mocktails have provided sober-curious Americans choices from alcohol.
In 2024, the percentage of Gen Zers (those born between 1997 and 2002) who planned to drink less alcohol increased 53 percent from the year before, according to one survey. Nearly one in five (19 percent) members of Gen Z don’t consume alcohol at all.
Interest in THC and CBD-infused drinks is a significant part of this movement. Estimated at $71.7 million in 2023, the U.S. hemp beverage market is expected to eclipse $1 billion by 2028.
In 2018, the bipartisan Farm Bill removed hemp and certain hemp-derived products from the federal Controlled Substances Act. The move empowered a generation of farmers and entrepreneurs to use one of our country’s oldest crops to build their businesses and create options for consumers. Now, without public or expert input, the industry is headed back to the shadows.
Market forces are speaking loudly. On DoorDash, we started offering hemp-derived products to customers over 21 this year. Almost immediately, several thousand merchants began selling hemp-derived items on our platform, reaching new customers, generating revenue and keeping local employees on the payroll.
From the farmers who grow hemp to the manufacturers and retailers who sell it, legal hemp products have become a crucial pillar of the modern economy. The industry supports more than 320,000 jobs, contributes $28.4 billion to the market, and generates $1.5 billion in state tax revenue annually. A blanket ban will shutter businesses, disrupt livelihoods and destabilize local economies.
To be sure, concerns about hemp safety are not without merit, especially those involving chemically altered THC products, which are not sold through DoorDash. Recently, a group of 39 state attorneys general mistakenly conflated all hemp THC products with potentially dangerous synthetic ones when they urged Congress to clarify the definition of hemp. In addition to banning these synthetic products, Congress should provide clear guidelines to those seeking to play by the rules.
To more broadly address safety concerns, lawmakers would be wise to convene all stakeholders in the debate — farmers, retailers, public health experts and regulatory experts — to create a federal framework. Setting clear rules on age requirements, testing, labeling and enforcement mechanisms could build consensus. The goal should be protecting consumers from harm without eliminating legitimate businesses, punishing farmers and outlawing an entire industry.
Bans are easy, but history tells us they don’t work. They are blunt instruments that exacerbate problems and fuel an illicit market. More than a century ago, the United States enacted Prohibition on alcohol. Widespread public opposition, loss of tax revenue, increased organized crime and corruption contributed to its swift repeal. For most Americans, the concept of banning alcohol today sounds as outdated as it is impractical. So, too, should sending hemp products back to the black market after nearly a decade of legalization.
Thoughtful policy is complex and rarely crafted in the dark. Before outlawing an entire industry, Congress should hear the concerns of those who would be affected. Not just the jobs that hang in the balance, but also the consumers. Millions of Americans, especially younger generations, have spoken with their wallets and embraced hemp-infused beverages. Countless farmers, manufacturers, merchants and consumers who have grown used to this legal market would have the rug pulled from under them overnight unless Congress reverses course.