The Fight Over Hemp Beverage Regulation in Washington, D.C.

The hemp beverage industry could disappear in 2026.

Not because consumers stopped buying it. Not because retailers stopped selling it.

But because of federal policy language that could remove hemp-derived consumable products from the market entirely.

Last week, I traveled to Washington, D.C. with a group of amazing women from Women in Hemp, part of the Hemp Beverage Alliance, to meet with House and Senate offices about exactly that issue.

Our goal was straightforward.

Help policymakers understand what is actually happening in the hemp beverage market and why thoughtful regulation matters far more than prohibition.

The women in our group represented nearly every corner of the hemp ecosystem. Some came from agriculture and farming backgrounds. Others were attorneys specializing in hemp regulation, policy advocates, hemp beverage brand founders, lab testing professionals, and industry educators working to bring clarity to the space.

And beyond our work in the industry, we also shared something else.

All of us are consumers of hemp-derived products ourselves. 

That perspective matters.

Because the conversations were not just about hemp beverages, but also about the entire supply chain.

Farmers growing hemp. Manufacturers producing beverages.

Labs ensuring safety and testing. Retailers selling the products. Consumers choosing them.

And right now, that entire ecosystem is trying to help policymakers understand what is at stake. To understand why these conversations are happening now, you have to understand how quickly the hemp beverage industry has grown.

Growth To Ban: How The Hemp Beverage Industry Got Here

The U.S. hemp-derived cannabinoid market now represents more than $28 billion in annual demand and supports roughly 328,000 jobs across farming, manufacturing, logistics, retail, and related industries.

Within that broader market, hemp beverages have emerged as one of the fastest-growing segments. Industry data shows hemp-derived THC beverage sales exceeding $1 billion nationally, with projections reaching $3 to 4 billion over the next several years as more states adopt regulatory frameworks and retailers expand distribution.

Retailers across the country have taken notice. Major chains like Total Wine & More, Target, and other national retailers have already begun carrying hemp beverages in states where regulations allow them.

But while the market has been evolving quickly, federal policy has struggled to keep pace.

During negotiations tied to the federal funding legislation that reopened the government in November 2025, new language affecting hemp-derived consumable products was added to the broader spending package.

The provision introduces a 0.4 milligram THC limit per container for ingestible hemp products.

At first glance, that number may not seem significant. But most hemp beverages currently sold in regulated markets contain between 2.5 and 10 milligrams of THC per serving. Which means that if implemented as written, the provision would effectively remove the vast majority of hemp beverages from the market.

That uncertainty is exactly why many in the hemp industry, including our group, traveled to Washington.

Not to argue against regulation.

But to help policymakers understand how the category actually works and why thoughtful regulation policy matters more than a sudden ban.

The Federal Hemp Bills Being Discussed In Washington

During our meetings in Washington, our group focused on gaining support for several pieces of legislation currently being discussed in Congress.

These proposals are aimed at providing clarity and stability for the hemp industry while regulators work through the broader complexities of cannabinoid policy.

Some of the key bills currently being discussed include:

S.3474 – The Cannabinoid Safety and Regulation Act (Senate Version) This bill proposes a federal framework for regulating hemp-derived cannabinoid products, including safety standards, labeling requirements, and oversight mechanisms.

S.3686 – The Hemp Planting Predictability Act (Senate Version) This proposal focuses on providing stability for hemp farmers by extending certain provisions related to hemp cultivation and regulatory timelines.

H.R.7024 – The Hemp Planting Predictability Act (House version) A companion bill designed to give farmers and producers greater certainty while federal agencies continue developing regulatory guidance.

H.R.7212 – The Hemp Enforcement, Modernization, and Protection Act (House Version) This bill focuses on modernizing enforcement structures and clarifying how hemp-derived products should be regulated within existing federal law.

The goal of these conversations was not simply to promote one specific bill.

It was to help congressional staff understand that the hemp industry is asking for workable regulation and realistic timelines, not a sudden prohibition that destabilizes an entire market.

One of the most interesting parts of these meetings was seeing just how differently offices approached the issue.

Some staff members were already familiar with the bills and the challenges facing the industry. But many others were still trying to understand how hemp products fit into existing regulatory structures and were clearly trying to untangle the complexity of this industry.

That alone shows how important continued education will be as the conversation moves forward.

While policymakers debate the future of hemp regulation in Washington, the market itself continues moving ahead.

Retailers Are Expanding Shelf Space For Hemp Beverages

Retailers are not waiting for federal policy to catch up. They are responding to what consumers are already asking for.

Across the country, stores like Total Wine & More, Spec’s, and other major beverage retailers are beginning to expand shelf space for hemp beverages as consumer curiosity turns into consistent demand.

Total Wine & More founder David Trone described hemp beverages as entering the same adult beverage conversation as beer, wine, and spirits. “This is now an adult beverage category… whether it’s a beer tonight or a glass of wine or an adult hemp beverage.”

For retailers, the category is no longer theoretical. It is already happening on store shelves.

But what retailers want most right now is not prohibition. It is clarity.

Clear federal rules that allow them to operate responsibly and consistently across states. And the reason retailers are paying attention comes down to one thing: the consumer.

The Consumer Driving Hemp Beverage Growth

One of the most important insights emerging in the hemp beverage category is the profile of the consumer driving its growth.

Many assume the category is driven primarily by traditional cannabis users.

But what retailers and beverage executives are increasingly seeing is something different.

During industry discussions at the WSWA conference, David Trone also mentioned that consumers purchasing hemp beverages often overlap with traditional wine drinkers and tend to skew slightly female.

That insight reflects what many in the industry are now seeing at retail. A significant portion of hemp beverage consumers are women over the age of 35, looking for alternatives to traditional alcohol.

They are professionals.

Parents.

Entrepreneurs.

Consumers looking for different ways to socialize and unwind.

The women from Women in Hemp who traveled to Washington represented that same shift.

As we sat across from congressional staffers, we were not just industry stakeholders. We were also part of the very consumer demographic helping drive the category.

And that reality often gets lost in policy conversations. But it matters.

Because behind every regulatory debate are real consumers whose demand for these products is already reshaping the beverage industry. As consumer demand grows and retailers expand shelf space, another part of the beverage ecosystem inevitably becomes involved: distribution.

The Role of Distributors In The Hemp Beverage Industry

Another critical part of the beverage ecosystem is distribution.

Many hemp beverage brands are beginning to explore partnerships with beverage distributors that already move beer, wine, and spirits through the three-tier system.

Companies like Southern Glazer’s Wine & Spirits, Reyes Beverage Group, Breakthru Beverage Group, and RNDC are closely watching how the category evolves.

For distributors, hemp beverages represent both opportunity and uncertainty.

Opportunity because the category is growing rapidly.

Uncertainty because regulatory frameworks still vary widely across states.

Clear federal guidance would allow distributors to evaluate hemp beverages within the same structured systems that already support alcohol and non-alcoholic beverage brands today.

But even with distribution support, getting a product onto a shelf is only half the battle. The real challenge is helping consumers discover and understand a new emerging category.

What We See In Hemp Beverage Retail Tastings

As EVP of Marketing at Hire Dragons, my perspective on this issue also comes from what we see every week inside retail stores across the U.S.

Our company helps beverage brands grow through story-driven staffing for retail brand activations, in-store tastings, and consumer engagement campaigns across the U.S.

That means our teams work directly with suppliers, distributors, and retailers across the beverage ecosystem.

Suppliers trying to build brand connection and growth.

Distributors working to move new products into accounts.

Retailers looking for products that resonate with their customers.

And increasingly, hemp beverages are entering that system.

From what we see in the field during the in-store hemp beverage tastings, the consumer response has been remarkable.

Across thousands of brand activations, our teams consistently see conversion rates exceeding 50% among consumers who sample the product or hear the brand story.

They are curious, want to learn more about the category, and appreciate having another adult beverage option.

For retailers and brands, that level of engagement is significant.

It signals not just curiosity, but real purchasing behavior. And it’s one of the reasons hemp beverages are rapidly changing the beverage landscape.

More consumer interest. More retailer attention. More innovation from brands entering the category.

All of this momentum in the market is now forcing a bigger question in Washington: what kind of hemp regulation will actually work?

Why Hemp Beverages May Be the Best Place To Start Regulation

One of the biggest challenges policymakers face right now is that hemp is not just one category of products.

The hemp industry includes everything from fiber and textiles to cannabinoids, supplements, smokable hemp, topicals, and beverages.

Trying to regulate all of those categories at once creates enormous complexity.

Different product types have different safety considerations, different consumer uses, and different distribution systems.

When everything is lumped together under a single regulatory conversation, the result is often confusion, delays, and policies that are difficult to implement.

That was something we saw firsthand in several of our meetings in Washington.

Staff members were trying to understand an industry that spans agriculture, health policy, consumer packaged goods, and controlled substances all at once.

It is a lot to untangle.

A more practical path forward may be to start with hemp beverages first.

Why?

Because beverages already fit naturally into an existing regulatory framework. The alcohol industry already operates with clear rules around age verification, product testing, labeling requirements, distribution systems, and responsible retail practices.

Those guardrails already exist.

Rather than reinventing the wheel, several states have started adapting those same regulatory principles for hemp beverages.

States like Minnesota, Texas, and Louisiana have already implemented regulatory frameworks that include testing requirements, labeling standards, age restrictions, and dosage limits.

That real-world experience provides policymakers with something extremely valuable.

Working models.

Starting with hemp beverages would allow regulators to build clear rules around a category that already resembles an existing system.

At the same time, extending the timeline for broader hemp regulation would give policymakers the space to thoughtfully evaluate other hemp product categories that require different approaches.

Sometimes the most effective policy path is to start where the structure already exists and build from there.

What Happens If Hemp Beverages Are Banned

There is another reality policymakers need to consider.

The genie is already out of the bottle.

Consumers have discovered hemp beverages. 

Retailers are selling them.

Brands are investing in the category.

Farmers are growing hemp to support it.

Demand is already here.

History has shown that banning a product rarely eliminates demand. It simply moves it somewhere else.

The adult beverage industry has lived through moments like this before. Prohibition did not stop alcohol consumption. It pushed it to the black market where safety disappeared and accountability vanished.

Eventually, policymakers realized something important. Regulation protects consumers far more effectively than prohibition.

If hemp beverages were suddenly banned at the federal level, consumers would not suddenly stop looking for them.

Instead, the market would likely shift to unregulated online sales, underground distribution, and products without proper testing or safety standards. The result would be exactly what policymakers are trying to avoid: no age restrictions, no lab testing, no labeling transparency, and no accountability.

Regulation protects consumers. Prohibition removes the safeguards.

The conversations happening in Washington right now will shape the future of the hemp beverage industry.

How To Support Responsible Hemp Beverage Regulation

If you are a retailer, distributor, beverage brand, or consumer, your voice matters right now.

Contact your House and Senate representatives.

Tell them one thing clearly.

Support responsible hemp beverage regulation. Do not ban the category.

Consumers want safe products.

Businesses want clear rules.

Farmers want stable markets.

And responsible regulation can make all three possible.