This week, Congress passed the Agriculture, Rural Development, Food and Drug Administration (FDA), and Related Agencies Appropriations Act as part of a broader package to reopen the federal government. One of the key provisions of the legislation would effectively ban the sale of hemp-derived THC products and significantly restrict many non-intoxicating CBD goods.
The measure expands the existing 0.3% delta-9 THC dry weight concentration limit to include all intoxicating cannabinoids, bans both synthetic cannabinoids and naturally occurring cannabinoids produced synthetically, and imposes a 0.4 milligram total THC limit per container. It would also override the authority of states that have legalized or regulated hemp-derived THC products. The proposed ban applies to virtually all hemp products intended for human consumption, with a one-year compliance period before taking effect in November 2026.
Congress’s late-breaking action reflects growing concerns about intoxicating hemp products being sold without consistent oversight, age restrictions, or testing standards. The provision as drafted will reshape the $5.4 billion market, with wide ranging economic implications.
Many states, including Minnesota, Tennessee and Florida, had already put in place specific rules for hemp-derived products, such as limits on certain formats like vapes and flower and requirements around potency and packaging. Under these state-based systems, Brightfield Group projected the hemp-derived market to remain strong and reach 7.5 billion dollars in sales. The new federal provisions will preempt these state approaches, establish a single national standard beginning in November 2026. Market forecasts suggest that some of the projected growth in hemp-derived products will be redistributed to adjacent categories, including functional and non-alcoholic beverages, other mood- and relaxation-oriented products, and regulated alcohol and cannabis channels.
Within the hemp derived THC market, beverages have been one of the most dynamic categories. Sales of hemp-derived THC drinks grew from 630 million dollars in 2024 to nearly 1.1 billion dollars in 2025 and were projected to reach 2.6 billion dollars by 2030, even without significantly expanded distribution. In Brightfield Group’s Q3 2025 consumer survey, nearly half (47.8 percent) of THC drink consumers report drinking less alcohol since adopting these products, most often to avoid hangovers (40.9 percent) or reduce overall alcohol use (38.2 percent).
Between now and November 2026, when the restrictions are scheduled to take effect, there is room for further discussion and potential refinement of the policy framework. Policymakers, industry groups, and public health stakeholders are likely to remain engaged as they work to balance safety, consumer protection, and economic considerations. In parallel, companies may explore contingency plans by expanding into adjacent functional beverage and wellness categories, as CBD brands like Vybes and Recess have done in the past, or by pursuing new opportunities within regulated cannabis and alcohol channels.
The hemp industry, along with the broader cannabis, beverage, and functional wellness sectors, has repeatedly demonstrated its ability to innovate, adapt to new rules, and respond to evolving consumer needs. What comes next will likely include a mix of advocacy, coalition building, product innovation, and partnership pivots as stakeholders navigate a shifting regulatory and competitive landscape.
Updated: 11/14/2025