The United States consumable hemp market has experienced remarkable growth since the passage of the 2018 Farm Bill, which federally legalized hemp production. While all segments of the hemp sector benefitted, none expanded more explosively than the floral hemp category and the wide range of products derived from it.
In states without legalized adult-use cannabis, hemp-derived consumables filled a critical gap for consumers and patients. A thriving market rapidly emerged—particularly for cannabinoid-rich products extracted from floral hemp—which became widely available even where cannabis remains prohibited.
A Booming Industry Faces Sudden Reversal
According to the USDA’s 2025 National Hemp Report, floral hemp production soared last year:
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20.8 million pounds of floral hemp grown in 2024 (up 159% from 2023)
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11,827 acres harvested (a 60% increase)
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1,757 pounds per acre average yield (up 669 pounds year-over-year)
Texas alone generated between $19.1 and $22.4 billion in economic activity from hemp-derived cannabinoid retail, manufacturing, and wholesale sectors as of mid-2025.
However, the momentum is now under threat. Earlier this month, federal lawmakers approved an appropriations package reinstating prohibition on most hemp-derived THC products. The Senate passed the measure, the House followed, and the President signed it into law soon after.
The prohibition will not take effect for one year, leaving a narrow window for Congress to introduce a corrective measure. Without such intervention, the U.S. consumable hemp market appears headed toward a steep contraction.
Searching for a Path Forward
The policy shift has sent shockwaves through the hemp sector, prompting companies to explore new strategies for survival. One option gaining attention is a pivot to Europe.
In European markets, consumable hemp products—often referred to as “cannabis light”—typically contain lower THC levels than their U.S. counterparts. Regulations vary widely between countries, and the landscape is far from uniform. Still, operators facing a shrinking domestic market may find viable opportunities abroad, provided they conduct careful due diligence and build strong local networks.
Beyond consumable products, Europe increasingly values industrial hemp for a variety of applications, including:
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Fiber production
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Sustainable materials
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Soil bioremediation
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Wastewater dye removal
These trends align with Europe’s broader environmental and circular-economy strategies, potentially opening additional avenues for U.S. companies with expertise in hemp cultivation, processing, or product development.
Europe as a Strategic Landing Spot
For American hemp businesses evaluating new markets, timing and connections will be crucial. A prime chance to gain both will come in April, when the International Cannabis Business Conference (ICBC) in Berlin convenes.
The event will bring together many of Europe’s leading hemp entrepreneurs, investors, and policymakers—offering a rare, concentrated networking opportunity for U.S. operators seeking a foothold in the European landscape.
As the U.S. industry braces for regulatory rollback, Europe could emerge as an increasingly attractive destination for companies determined to keep innovating and growing.
