From 951 to 2,197 Stores: The Rapid Expansion of Hemp Retail

In North Carolina alone, the hemp industry comprises hundreds of manufacturers, wholesalers, and retailers, with a worth of around $3.2 billion. In the retail sector, a wide range of hemp finished products is diversifying the industry. In 2023, there were only 951 retail stores, and they kept on growing with consumer demand. At present, the number of retail stores is 2,197.

A single retail unit deals with around 52 to 68 customers per day, with an average spending of $46.49 per transaction. The significant sales volume and number of customers demonstrate acceptance of hemp consumer products for wellness and therapeutic use.

These stats are for the retail operations of just one state; other states are also witnessing the rapid expansion of hemp retail markets. Learn what the key factors behind this economic growth are and what types of retail outlets are working in the supply chain.

Evolution of Hemp Retail: Physical Stores, Online Growth, and New Products

Hemp finished products reach the final customer in a variety of ways, providing easy access to purchase. Here are some retail units meeting consumer demand:

Growing Number of Cannabis Dispensaries

In retail operations, dispensaries hold a significant place. They are authorized platforms to get legalized cannabis products containing THC content under legal limitations. In 2024, the total number of dispensaries was recorded at around 12,156.

1. Leading States with Maximum Dispensaries

Oklahoma was the leading state with 2,387 dispensaries. Some of the other states with a significant number of such medical retail outlets include California, Colorado, Michigan, Oregon, Washington, Massachusetts, and Montana.

2. Access to State-approved Cannabis Products

Dispensaries start selling cannabis, including hemp-based products, after getting a license from the relevant regulatory authority. For example, in New York State, a dispensary needs a license from the Office of Cannabis Management to begin retailing various products.

The following are the key factors behind the growing number of dispensaries:

Registered dispensaries partner only with licensed processors, manufacturers, and distributors, ensuring product authenticity and compliance.

Greater transparency significantly expanded the customer base, thus increasing demand for more licensed outlets.

Legal dispensaries help prevent illegal use and restrict access by minors by enforcing strict ID verification before sale. So, the regulatory authorities encouraged such licensing.

Online Stores with Vast Delivery Networks

Compared to physical products, many hemp products, particularly CBD products, are now easily available online. From tinctures, gummies, and capsules to topicals like creams and lotions, they are trending across the internet.

Most companies deliver countrywide. However, some states have stricter regulations, so some online websites exclude those locations for delivery. In areas where licensed dispensaries or specialty stores are not available, consumers prefer such websites.

Although online purchases increase the risk of minor access, they still account for a significant share of total retail sales. The following limitations of physical stores are behind the expansion of cannabinoid online businesses:

1. Higher Rental Cost

The cost of physical stores in the form of rent is quite high. Running online stores requires only a warehouse and partnerships with distributors to deliver parcels.

2. Non-availability of Insurance Coverage

Insurance companies also hesitate to offer coverage for such cannabis businesses due to legal uncertainty in some jurisdictions, and the chances of illicit use make insuring cannabis or hemp physical stores tricky.

3. High Competition

Hemp products have various regulatory limitations from state to state. Some states promote their cultivation or manufacturing, while others strictly prohibit marketing or possession. This difference attracts businesses to areas with flexible conditions and legal support. That is why specific locations now have a high number of stores with saturation.

4. Ease of Online Marketplaces

Multiple platforms are available that are not manufacturers or cultivators but rather serve as a bridge between hemp businesses and target customers. By handling websites and apps, and promoting them in targeted areas, such marketplaces serve as middlemen. So, CBD or other cannabis manufacturers handle their sales operations with online marketplaces rather than running physical stores.

Rise of Innovative Hemp-Derived Products

Apart from CBD and other cannabinoids, hemp extracts are now used in a variety of personal care products. You can find CBD in soaps and lotions for skin rejuvenation. Likewise, industrial hemp seeds are used for protein powder, and hemp seed oil is extracted and used as a seasoning for various cuisines.

The availability of a wide category of hemp-based finished products attracts new customers to retail sales, enhancing the overall market share toward economic growth.

Challenges of the Hemp Retail Sectors

The rapid boom in hemp retailing over the past few years is a good sign for the industry's survival and growth. However, too many businesses entering the market join toward saturation. The brands are now competing on price, although the extraction and filtration processes for various cannabinoids are costly. This situation is shrinking their profit margins.

On the other hand, some regions still lack infrastructure and supply chain networks, giving fewer opportunities for local businesses. So, entrepreneurs need to target untapped markets where both federal and state regulations support such products.

North Carolina's Approach: S265 and Retail Sector Clarity

In North Carolina, where hemp retail has grown from 951 to 2,197 stores, the industry supports thousands of jobs and contributes significantly to the state's $4.4 billion hemp economy. Senate Bill 265 (S265), known as the Protecting Our Communities Act, addresses many of the regulatory challenges facing retail operations.

Sponsored by Senators Todd Johnson, Michael Lazzara, and Danny Britt, S265 establishes a comprehensive framework for hemp retail that includes:

21+ age restriction Proper packaging and labeling Requirements Third-party HPLC product testing requirement Licensing for Manufacturers, Distributors, and Retailers Enforcement Measures for ALE and state-based law enforcement agencies

Many North Carolina retail businesses have expressed support for clear regulations, recognizing that defined standards can improve consumer trust and create a more stable marketplace. By establishing accountability measures rather than overly restrictive policies, S265 aims to support legitimate retail operations while addressing public safety concerns.

The bill provides the operational clarity that North Carolina's 2,197 hemp retail stores need to continue serving customers and contributing to local economies across the state.

Future Outlook: Supporting Growth Through Smart Regulation

The hemp retail sector has shown remarkable growth in North Carolina and across the country. As the industry matures, comprehensive regulatory frameworks like S265 can help maintain this momentum by providing businesses with clear operational guidelines.

For North Carolina's retail sector, the focus remains on balancing consumer safety with business viability. The 2,197 retail stores currently operating represent significant economic activity, customer jobs, and local tax revenue. S265's approach prioritizes protecting this economic contribution while implementing safety measures that benefit consumers and communities.

As discussions continue around hemp regulation in 2026, North Carolina's retail sector stands to benefit from policies that establish clear rules, support compliant businesses, and ensure product quality standards. The growth from 951 to 2,197 stores demonstrates the industry's economic potential when supported by reasonable regulatory frameworks.