How Hemp Retail Alone Generates $1.8 Billion in Economic Activity?

North Carolina is one of the fastest-growing hemp industry regions, where key stakeholders include manufacturers, processors, retailers, etc. However, the retail sector alone is now boosting the overall economy. Retail sales of hemp-derived cannabinoids were only $759K in 2023, but their contribution reached around $1.8 billion in 2025. 

In recent years, the high consumer demand for hemp products has been the major driving force behind billion-dollar sales. Various finished products are part of the hemp sector, including edibles and textile clothing. What factors are shifting consumers toward hemp fibers, grains, and cannabinoids? This article sheds light on the flourishing hemp retail sector, along with its challenges amid ongoing legal reforms 

Whitney Economics Hemp Report: Booming NC Retail Sector

Whitney Economics is a global firm focused on data collection and economic research related to cannabis and hemp businesses. According to its report, the following are key findings about the growing retail sector:

• The number of hemp retail stores has doubled since 2023 in North Carolina. 

• Total economic activity has grown to $4.4 billion, with retail sales supporting other associated businesses and industries.

• Despite the doubling of hemp stores, each store serves around 50 to 68 customers per day on average.

• Hemp consumers spend an average of $46.49 on hemp products.

• Higher sales volumes have also resulted in increased sales tax revenues of around $87.8 million.

Key Drivers of the Hemp Retail Sector

Hemp is an agricultural commodity, and after its legalization following the Farm Bill of 2018, its cultivation started on a massive scale. Farmers, processors, manufacturers, wholesalers, and retailers represent the overall industry. However, if we look at retailing, it is growing speedily based on the demand for various hemp-based finished products.

Hemp is a valuable commodity that offers raw materials used in various industries, including construction, textiles, paper, ink, foods and beverages, and wellness products. Among all these uses, the two fastest-growing sectors with significant market share are:

• Cannabinoid products

• Hemp-based clothing

Multiple factors are behind their growth, which we will discuss one by one.

Hemp-Based Cannabinoids

More than 2,500 businesses are working in the North Carolina cannabinoid market. More than 70 percent of these businesses are in profit, while the rest are almost at the break-even point. The profitability of this retail sector clearly indicates the high demand for such products. That is why small to medium-scale businesses have increased in recent years because of the following factors:

• Higher awareness of the therapeutic properties of hemp-based cannabinoids.

• Shift from pharmaceutical treatments to complementary therapies with natural products such as CBD, CBG, CBN, etc.

• Availability of diversified hemp-based cannabinoids, including the skincare and supplement sectors.

• Easy access to various therapeutic cannabinoids through online stores, specialty wellness stores, pharmacies, etc.

• Availability of diversified edibles, such as tinctures, topicals, capsules, and beverages, for medical and recreational purposes.

Legalization of Hemp-Derived Cannabinoids

The Farm Bill 2018 legalized hemp products, where the legal definition of hemp includes delta-9 THC levels not exceeding 0.3 mg per dry weight basis. After that, many businesses entered the market for various edibles and beverages.

The demand for such products grew rapidly with increased awareness about their health benefits and use for recreational purposes. However, to date, no supplement has been fully approved by the FDA.

New Hemp Bill: Threat to Multiple Businesses

The new hemp bill, passed in 2025, will come into effect in November 2026. According to it, legal hemp is defined as containing total THC not more than 0.4 mg per dry weight basis.

In the past, the absence of clear limitations on various THC variants created opportunities for small businesses to introduce various intoxicating products. Some businesses also used misleading labels. The use of such products also rose among minors due to snack-like packaging. All these factors created the need for a better legal framework.

However, many businesses have product lines containing some level of THC variants, so they fear the bill may shut down their operations, causing huge losses. That is why the bill is receiving mixed reactions, and hemp cannabinoid businesses are strongly advocating for flexibility in product-level regulation rather than a complete ban.

Hemp Clothing Market

In 2021, the hemp clothing market in the world was calculated at a value of $2.29 billion. Based on current market trends, it is expected to grow significantly and is projected to reach around $23.02 billion by 2031.

Market growth factors are mainly due to a remarkable shift from traditional clothing to hemp-based clothing. Some of the key contributing factors are:

• Hemp fiber is best for clothing items because of its light-blocking, antibacterial, and moisture-resistant properties.

• It is dyeable, so cloth manufacturers can use it for shirts, pants, jackets, activewear, etc.

• Growing hemp fibers requires less water resources and lower pesticides compared to other fabrics.

• By removing carbon dioxide from the air, this sustainable crop comes with a lower carbon footprint.

• Hemp stems and seed fibers are beneficial for animal bedding.

• Hemp cultivation improves soil quality, so the plantation of any other crop results in higher production afterward.

Click HERE to learn how hemp becomes a fabric. 

Sustainability: The Biggest Booster of Hemp Clothing

Apart from hemp fiber quality in terms of comfortable clothing, the biggest factor is its sustainability. With increasing global warming and extreme weather conditions, the shift to eco-friendly crops is rising. 

Hemp is one of the best rapidly growing agricultural commodities with less water usage and a low carbon footprint. As a result, customers who want to play a responsible role toward nature prefer textile brands using hemp fibers over traditional cotton, bamboo, etc.

Hemp Clothing Distribution Channels

The hemp clothing industry is growing with more online retail stores than physical ones. People can order from any hemp textile manufacturing company, compare product quality, sourcing, and other aspects through online channels. Apart from online stores, hypermarkets and internet retail stores are also expanding across North America, the Asia Pacific regions, and Europe, etc.

What Future Holds for Hemp Retail Sectors?

The hemp retail sector is growing and becoming profitable. It is supporting state-level economies through sales revenue, tax income, job creation, and small business development. Rising consumer demand is shifting market trends and increasing the need for more innovative yet sustainable products.

However, the new hemp bill poses risks for cannabinoid businesses by creating uncertainty around the legal status of retail products. Will hemp businesses succeed in securing flexible reforms, or will the new regulations push them out of the market? This question is raising concerns among millions of people involved in retail operations and entrepreneurship.