The Hemp Beverage Boom Faces a Turning Point
- Vik F.
- May 12
- 4 min read
The hemp beverage industry has been moving fast, but now it’s approaching a moment that could reshape everything. When the 2018 Farm Bill passed, it quietly kicked off one of the biggest shifts in modern beverage history. By legalizing hemp and removing it from the DEA’s list of controlled substances, the bill gave producers a green light to start creating everything from hemp seed snacks to Delta-9 THC seltzers. And they did. The result? A booming, chaotic, and often misunderstood market that is still figuring itself out.
That Farm Bill didn’t just legalize hemp. It also defined it as cannabis with no more than 0.3 percent Delta-9 THC on a dry weight basis and allowed it to be sold and shipped across state lines. But here’s the catch—it treated hemp like an agricultural crop, not a finished consumer product. That means while it opened the door for innovation, it didn’t lay out any clear rules for what happens once hemp gets turned into something intoxicating, like a beverage.
Since then, hemp-derived THC products have taken off. You’ve seen them on shelves in gas stations, grocery stores, and wellness shops. They’re sold in states where cannabis is still illegal and marketed as smoother, more accessible alternatives to alcohol or edibles. In many ways, these beverages filled a gap—and consumer interest has kept the momentum going. But they’ve also created a regulatory gray area that’s hard to ignore.
Right now, there is no consistent federal oversight for how these products should be made, labeled, tested, or sold. Some states have stepped in with age limits or potency caps. Others haven’t done anything at all. That’s led to a wide range of products in the market, some responsibly made and others not. And in places without regulations, minors can access these beverages just as easily as an energy drink.
At the same time, the numbers are showing just how big this space could get. BDSA reported that U.S. legal cannabis sales hit nearly 30 billion dollars in 2023, with projections rising even higher for 2024. Adult-use markets now account for more than half of global cannabis sales, and emerging East Coast and Midwest states are expected to lead the next growth wave. Hemp beverages may not be sold in dispensaries, but they are tapping into that same audience—people looking for flexible, functional, and buzz-worthy options.
Industry voices are calling for structure, not shutdowns. The Wine and Spirits Wholesalers of America have publicly supported federal regulation of hemp-derived THC products and even backed the legalization of adult-use cannabis. They’re pushing for a framework that mirrors the success of the alcohol industry’s three-tier system. That means putting controls in place that prioritize safety, traceability, and age-restriction, without shutting the door on the category entirely.
Across the country, more than 100 bills in 34 states are trying to figure this out. Some are calling for bans on synthetic hemp-derived compounds. Others want to introduce testing requirements, marketing rules, or retail restrictions. The inconsistency has created confusion not just for consumers, but for retailers and producers too. In the absence of a federal baseline, every state is trying to decide what these products should be allowed to do and where they should be allowed to go.
With the 2018 Farm Bill set to expire in 2025, the conversations about what comes next are already well underway. Industry leaders are urging lawmakers to get specific in the next version. That includes establishing a clear definition for intoxicating hemp-derived products and restricting the use of synthetics that mimic THC but are created through chemical conversion. Many are calling for national testing protocols, labeling standards, and federal age restrictions to ensure these products are not marketed to minors or misrepresented on shelves. Track-and-trace systems, already used in the alcohol and cannabis industries, are also being discussed to create accountability across the supply chain.
Another possible update is creating a formal product category just for hemp beverages. That move could help distinguish them from cannabis edibles or traditional alcoholic drinks while still giving regulators a clear structure to follow. There are also calls to align future regulation with existing FDA rules, particularly under the Food, Drug, and Cosmetic Act, which currently treats any product containing THC as “adulterated” and unauthorized for interstate sale.
Whether or not the next Farm Bill takes all these ideas into account remains to be seen, but the pressure is mounting. Producers want clarity. Consumers want safety. And policymakers are finally realizing that the genie is not going back in the bottle. Hemp beverages are here, and they are not a passing trend. They are carving out space in coolers, menus, and consumer routines, and they deserve a framework that supports both innovation and responsibility.
What happens next will shape how this category matures. The right structure could turn the current patchwork into a scalable, regulated, and respected segment of the adult beverage market. Until then, brands will have to stay alert, adaptable, and ready to help shape the future of hemp one sip at a time.
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