State of Hemp in 2024, A Year of Transformation and Challenges
By Kerry Hinkle, Director of Membership and Public Affairs, U.S. Hemp Roundtable
Kerry Hinkle, Director of Membership and Public Affairs, U.S. Hemp RoundtableThe hemp marketplace in 2024 highlighted the tension between innovation and regulation. The rise of low-dose hemp-derived Delta-9 THC beverages—manufactured under strict standards and sold in mainstream outlets like grocery stores—marked a significant shift in the industry. These products contrast sharply with the THC-O vapes of years past, which were sold primarily in fringe smoke shops in states where cannabis remains illegal. With “big alcohol” entering the hemp market, the industry gains legitimacy, but it also underscores the urgent need for regulation. Will these beverages fit neatly into the existing three-tier system designed to regulate alcohol? Will distributors carry other formats like edibles, tinctures, or capsules? And how can the direct-to-consumer (D2C) channel be preserved while implementing meaningful age gating?
As 2025 approaches, the Farm Bill remains the industry's top priority. Draft versions from the Senate and House in 2024 proposed drastically different definitions of hemp, creating uncertainty about the industry's legal future. The Senate aimed to close loopholes for THCa flower and some Delta-8 THC products, while the House proposed banning all products with any THC content. Both approaches risk banning popular products and driving consumers to the black market instead of regulating the existing market.
Senator Ron Wyden’s (D-OR) Cannabinoid Safety and Regulation Act, introduced in September 2024, offered a different path forward. The bill emphasizes regulation over prohibition, establishing federal standards for hemp products while allowing states to impose stricter rules. A revised version of this bill is expected in 2025, offering hope for clearer federal guidelines.
At the state level, hemp policy has been a game of “whack-a-mole”, as each state decides to legislate or regulate hemp products differently. California implemented an outright ban on hemp products containing any THC, Georgia opted for comprehensive regulation, and Florida considered milligram caps before Governor Desantis issued a high-profile veto. This incoherent approach to regulation only underscores the need for federal guidelines.
2024 showed a maturity in the market that has been in the making since the 2014 Farm Bill launched pilot programs across the country. Market participants have shown amazing resilience, entrepreneurial spirit, and drive to match a fast-changing legislative environment and shifting consumer demands over the years. 2025 should prove no different, as we watch in real-time this market mature. Buckle up, this ride may be a little bumpy.
