Tennessee, like many other states, has a thriving hemp-derived product market. Demand for products derived from hemp that contain cannabidiol and/or ‘alternative cannabinoids’ such as delta-8 and THCa have increased significantly in recent years.
The hemp industry in Tennessee is in flux on the regulatory side, with new rules recently taking effect. For example, edible products are now capped at 25 milligrams of cannabinoids per serving, although individual product units can contain multiple servings.
A measure passed last year allowed the Tennessee Agriculture Department to create rules about how to produce, distribute, and sell hemp-derived products, and currently, the industry is governed by ’emergency rules’ until final versions can be implemented.
“The department is sorting through more than 19,000 comments made during the rulemaking process — the most feedback the department’s ever received, she said. The permanent rules should be finalized by Christmas, when the emergency rules expire, according to Szappanos Hart.” stated the Chattanooga Times Free Press in its local coverage.
“A 6% sales tax (on top of the state’s 7% sales tax) has already been in effect for hemp-derived products.” the outlet also reported. “So far, that tax has generated a little more than $10 million since July 2023, according to data from the state’s revenue department.”
The United States hemp-derived THC beverage sector alone is projected to reach $4.1 billion by 2028 according to a recent market analysis by Euromonitor International. The researchers at Euromonitor International estimated that the market was worth $239 million in 2023.
The hemp-derived THC beverage sector has greatly benefitted from the national 2018 Farm Bill that legalized hemp production across the United States. Adult-use cannabis beverages are commonly sold at licensed cannabis dispensaries, however, hemp-derived THC beverages are sold through a wide variety of retailers, including online retailers.
Euromonitor International is projecting that hemp-derived beverages will experience considerably more growth in the coming years compared to adult-use beverages.
“In 2023, sales of cannabis beverages (excluding hemp-derived intoxicating products) reached USD952 million, making up nearly 3% of the total cannabis market.” Euromonitor International stated.