Houston THC Drink Boom at Risk as National Hemp Ban Advances

Houston’s fast-growing market for hemp-derived THC drinks faces a major threat as federal lawmakers consider a national ban on products that contain intoxicating hemp compounds. Local manufacturers, retailers, and bar owners warn that the proposal could unravel one of the city’s most dynamic new consumer industries.

Federal proposal sparks concern for Houston businesses

The potential ban, now moving through Congress as part of a broader agricultural policy bill, targets hemp-derived cannabinoids that create intoxicating effects. That category includes the THC seltzers and mixers that have surged in popularity across Houston over the past two years.

Houston-based producers say the proposal threatens hundreds of local jobs and millions in annual revenue. Many entrepreneurs built their businesses around the 2018 federal Farm Bill, which legalized hemp products that contain no more than 0.3% delta-9 THC. Because that legislation did not restrict other cannabinoids, companies created drinks using compounds like delta-8 and hemp-derived delta-9.

Industry leaders argue that the ban would shut down a growing economic sector and push consumers back toward unregulated or illicit alternatives. Several Houston retailers reported steady monthly sales growth as more customers choose low-dose THC drinks instead of alcohol.

Why it matters for Houston

Houston has become a regional hub for hemp beverage production, distribution, and retail. Local breweries and beverage startups have added THC product lines, while bars and restaurants increasingly offer infused mocktails. A national ban could disrupt that momentum.

• Small businesses may need to lay off staff or close.
• Local manufacturers could lose investments in production equipment and packaging.
• Consumers would have fewer alternatives to alcohol-based drinks.

Residents who enjoy the drinks for relaxation or wellness say a ban would limit legal, regulated options. Retailers worry that customers would shift to other states or online sellers operating in gray markets.

What’s next

Industry groups, including several based in Texas, plan to continue lobbying lawmakers for changes to the bill. Some propose setting potency limits instead of banning entire product categories. Others want clearer labeling rules and age restrictions rather than a full prohibition.

If Congress approves the ban, businesses would likely receive a transition period. However, owners say that any nationwide restriction would still trigger major financial losses.

Houston entrepreneurs plan to prepare contingency strategies but note that few alternatives match the rapid growth and consumer demand of hemp-derived THC drinks.

This article is a summary of reporting by the Houston Chronicle. Read the full story here.