US lawmakers have introduced new limits on THC levels in hemp-derived beverages and edibles, reshaping a fast-growing sector that has increasingly competed with the alcohol market. From November 2026, products will only be permitted on shelves if they contain no more than 0.4 milligrams of THC per container. Industry groups estimate the threshold will remove most existing products from the market.
The change addresses long-standing ambiguity in the 2018 Farm Bill, which decriminalised hemp but did not specify how THC limits applied to liquid or edible products. Brands used this gap to sell delta-9 THC beverages produced from hemp-derived CBD, creating a multibillion-dollar category that operated outside conventional cannabis regulations.
Hemp-based psychoactive drinks have expanded rapidly in states where recreational cannabis remains illegal. Market forecasts projected the US cannabinoid sector would reach several billion dollars by 2025, fuelled by rising consumer interest in alternatives to alcohol. Analysts have linked the sector’s growth to falling alcohol consumption, with beer and spirits producers reporting pressure on sales volumes.
Large alcohol companies have lobbied for tighter oversight of hemp derivatives. Trade groups representing brewers and distillers argued for clearer regulation and higher compliance standards, saying THC beverages were entering retail channels without the controls applied to alcoholic products. Some alcohol producers previously invested in cannabis ventures but later scaled back due to inconsistent regulation and weak returns.
Major players in the cannabis sector have been expanding into hemp-derived drinks. Tilray, which has recorded recent quarterly revenue growth, reports significant market share in North America and has advocated for limits that still allow lower-dose products to remain viable. Retail distribution had widened in recent months, with mainstream chains beginning to stock hemp-derived THC beverages.
The new federal standard now provides a clear national limit, setting the conditions for a shake-up across manufacturers, retailers and distributors operating in the hemp beverage category. Businesses in the alcohol sector are expected to press for further rules that align intoxicating hemp products with existing regulatory frameworks.