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Regulatory Shifts Across States Alabama Enacts Strict Hemp Regulations
Governor Kay Ivey has signed HB 445 into law, introducing stringent controls on hemp-derived THC products. The legislation bans smokable hemp items, limits edibles to 10mg of THC per serving (40mg per package), and mandates licensing through the Alcoholic Beverage Control Board. Online sales and products appealing to children are also prohibited. Businesses must comply by January 1, 2026.
California Reports High Compliance with Hemp THC BanCalifornia's emergency ban on hemp-derived THC products sold outside licensed dispensaries has achieved a 99.7% compliance rate among alcohol-licensed businesses. The ban, initially set for six months, has been extended and is due to expire in late June 2025, with one possible 90-day extension remaining.
Texas Debates Restrictive Hemp LegislationTexas lawmakers are considering a bill that would ban all hemp-derived inhalable products and cap THC content at 5mg per serving. The proposed legislation has sparked opposition from the hemp industry, which argues it could devastate the state's $5.5 billion hemp market.
Market Trends: Rise of Hemp-Based BeveragesCannabis-infused drinks are gaining popularity and impacting alcohol sales. CBD-infused beverages generated $5.3 billion in 2021 and are projected to rise to $16 billion by 2026. Major cannabis companies like Trulieve, Curaleaf, and Green Thumb Industries have launched THC-infused beverages, signaling confidence in the market's growth.
Industry Growth and Research Initiatives U.S. Hemp Production IncreasesIn 2024, U.S. hemp production grew by 40%, reaching a value of $445 million. This growth indicates a resurgence in the industry following previous market contractions.
Brazil Launches Long-Term Cannabis ResearchBrazil's agricultural research agency, Embrapa, has initiated a 12-year program to study cannabis cultivation. The research aims to develop cannabis seed banks, adapt varieties to Brazil's climate, and establish regional production hubs, following a court ruling that legalized hemp planting for medicinal use.