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Chicago’s hemp sector braces for collapse as city ban looms

Published

4 months ago

December 17, 2025

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Whitney Economics analyzed the potential state and national effects of bans on the sale and production of hemp-derived cannabinoid products. The company conducted a survey in Illinois in March 2025 of Illinois hemp sellers, manufacturers and distributors from the perspective of revenue, state and local taxes, as well as employment and profits.

“The hemp-derived cannabinoid market is a major contributor to the economy of Chicago and Illinois. It is a major source of employment, wages, and state and local tax revenue. Based on a March 2025 survey, respondents indicated that if bans were imposed on the sale and production of hemp-derived cannabinoid products, these companies would go out of business entirely, or otherwise lose state employment. revenue. and increased spending by state and local governments to support displaced workers,” says Beau Whitney.

Illinois hemp derived retail analysis
The state has approximately 1,014 businesses supporting hemp-based retailers. These merchants generate more than $870 million in revenue and have a statewide economic impact of $2.1 billion. Including wholesale and manufacturing, revenue increases by $2.7 billion, with an economic impact of $6.5 billion. These numbers are based on a March 2025 survey of Illinois businesses. These businesses generate about $169.1 million for the state.

Income based on hemp-derived cannabinoids
Annual revenue from hemp cannabinoid products is $2.7 billion.

Employment and wages
Overall, Illinois’ hemp-derived cannabinoid industry, including cultivation, employs nearly 13,500 workers statewide and pays more than $545 million in wages annually.

There are approximately 4,750 retail jobs associated with hemp-derived businesses. Wholesalers add 6,300 jobs and manufacturers add 2,500 jobs. Wholesale jobs are important because Illinois serves as a regional hub for other states.

Distribution of sales of hemp-derived products in Illinois
The sector breakdown of sales percentages shows a fairly even split between THCA flowers, vaporizers, edibles, and beverages. Beverages were projected to grow in 2025 in terms of total market share, primarily at the expense of vapes and edibles, but also at the expense of THCA flower. High state and local marijuana taxes are driving consumers to the hemp-derived market at every level.© Whitney EconomicsSource: Whitney Economics Illinois Hemp Cannabinoid Survey (March 2025)

The effect of excessive taxes on marijuana on consumer purchasing behavior
A separate report examining the impact of cannabis taxes on consumer purchasing decisions shows that lowering state and local marijuana taxes will increase marijuana sales and tax revenue. However, a simple hemp ban will not have a similar effect, as consumers will buy marijuana and hemp products online or in other states, such as Michigan or Missouri, where prices and taxes are significantly lower. (Source: Cannabis Tax in Illinois – Whitney Economics – April 2025)

Chicago specific data
Chicago has identified approximately 220 retail businesses. (These are merchants with a Chicago address). Wholesaler, distributor and manufacturing data is more difficult to obtain. They generate about $475 million in sales from these retailers. CBD sales add roughly $30 million to that number, but this is a rough estimate because CBD is so common in cosmetics and other non-toxic products. Retail sales tax revenue is estimated at $31 million a year from sales tax alone. This does not include $5.0 million – $7.5 million in license fees.

Retail employment is also significant with 1,030 – 1,250 workers, generating $37,214,900 in wages.

The effect of bans on companies and employment
A majority of survey respondents indicated that if there were severe restrictions or legislation banning sales, they would move to another state or go out of business. “One by one, survey respondents told me they were moving away from retail operations in favor of a distribution model,” says Beau Whitney.

Effects of statewide cuts
Across the state, the impact of restrictions or bans is significant. Negative numbers represent losses in the chart below.

For more information:
Whitney Economics
Beau Whitney
(503) 724-3084
www.whitneyeconomics.com

Related Topics:Ban braces Chicagos City collapse Hemp looms sector

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Kentucky’s medical cannabis cultivators in a race for supply

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Most Americans Back Legalizing Marijuana, But Trump Voters Not On Board, Conservative Group’s Poll Shows Amid Rescheduling Rumors

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NC lawmakers revisit marijuana policy following reclassification

Published

15 hours ago

April 28, 2026

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North Carolina lawmakers say they’re fueling debate over the state’s marijuana laws — a move by the Trump administration to reclassify it as a less dangerous drug.

Across the country, a set of laws and enforcements regulate marijuana. The drug is illegal under federal law, but dozens of US states have legalized it. And almost all states have legalized medical marijuana prescriptions for certain ailments. North Carolina is among the remaining states to resist any form of legalization. Republican politicians in North Carolina have resisted passing any bills to legalize or decriminalize marijuana, despite public opinion polls showing broad public support for such changes.

Senate President Phil Berger said he expects his chamber to revisit efforts to legalize medical marijuana this week. “We will have a conversation within our caucus if they are interested in whether we do something,” Berger told reporters Tuesday.

The recent actions of Republican President Donald Trump may add a new dimension to these conversations. Trump’s acting attorney general on Thursday signed the drug classification as a less dangerous and less strictly regulated drug than marijuana. Federal law does not legalize marijuana for medical or recreational use.

Cannabis News

Indiana GOP Governor Directs State Agencies To Meet With Medical Marijuana Advocates As Federal Rescheduling Takes Effect

Published

15 hours ago

April 28, 2026

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Indiana state officials are holding a series of meetings with medical marijuana advocates at the behest of the Republican governor.

After a day The Trump administration announced that federal cannabis regulation is moving forwardOfficials from the Indiana Department of Veterans Affairs, Department of Health and other state agencies spoke with Hoosier Veterans for Medical Cannabis and Indiana NORML to discuss next steps at the state level.

The meetings, activists said, were at the request of Gov. Mike Braun (R).

“The governor has reached out to us to meet with other heads of his department to get their input on this move,” military veteran Jeff Staker, one of the advocates, told Fox 59. “Our next step, hopefully, will be in the governor’s office.”

Lucy Luman, who is also a veteran and serves as president of Indiana NORML, he said That federal reform “addresses major challenges our lawmakers have raised before.”

Advocates previously met with Indiana Secretary of Business Affairs Mike Speedy, they told WHTR-TV.

“It tells you that the governor has considered it well, and I hope that our organization and others will come into the governor’s office and discuss with him and brainstorm more,” Staker. he said. “You have to realize that a lot of our state legislators have been waiting for that to happen.”

“The feds have made their move, and now it’s time for Indiana to make ours,” he said. “And of course we want to do well.”

State Rep. Jim Lucas (R) said federal marijuana rescheduling “takes away the arguments that the opposition had in our state.”

State Sen. Rodney Pol (D) agreed, saying the Trump administration’s action has “helped get the ball rolling.”

last month, The governor said the “crescendo will rise” in the call to legalize marijuanaregional dynamics as well as law enforcement by opting for reform. But for now, he said, the GOP legislative leadership is “not interested in doing anything anytime soon,” even though “half of Hoosiers probably smoke illegally.”

Braun said he thinks lawmakers should take an “extra look” at medical cannabis and, while he’s personally “agnostic” about legalization, the reality is Indiana is “now surrounded by four states” that allow medicinal or adult use of cannabis.

“Probably half of Hoosiers smoke illegally,” he said, noting that suburban Kentucky allows patients to access medical cannabis, while Illinois, Michigan and Ohio have recreational marijuana laws.

“I’m going to listen to law enforcement. They’ve even changed their minds about legalizing and regulating,” Braun said, adding that he compared cannabis to gambling. The state was late to pass laws allowing adults to gamble, he said, but now ranks among the top three states nationally in terms of per capita revenue from vice.

“Some people won’t want to, just on principle. A lot of police and sheriffs in our state are willing to cross the border (to buy cannabis). It’s going to be a growing problem, so far, the way our state legislature has opposed it,” he said. “I’ve been more agnostic about it. I can see the points of view, and I’ve seen law enforcement move somewhat.”

“So that will give you the best description of where the dynamic is in our state,” the governor told WOWO. “I think the leader of the Senate and the Speaker of the House in particular are cool — and they control the legislative agenda — they’re not interested in doing anything anytime soon. But I think the crescendo will rise, and that pretty much describes where we are.”

Braun also addressed the issue in another recent interview, saying the state will “probably have to address” the issue and pairing cannabis reform with sports betting.

State legislators already He stated that there is no legalization of marijuana in the 2026 sessionThis is another year where Indiana will be left out as one of the few states without effective medical or adult use cannabis laws.

The governor said this separately in January He “fits in” with the idea of legalizing medical cannabis in the state. Instead, Indiana lawmakers this session have focused on efforts to ban THC hemp products, though The fight for 2026 appears to be over after a last-minute push failed late last month.

Braun has previously said that federal marijuana reorganization He could add “some fire” to the local push to legalize cannabis in his state.

Among Indiana residents, a survey released in January found that nearly three in five supported the legalization of medical and recreational cannabis.

Specifically, Ball State University’s (BSU) Bowen Center’s annual Hoosier Poll found that 59 percent of residents support the legalization of cannabis for medical and recreational purposes. An additional 25 percent return allowing patients to access medical marijuana, bringing total support for that reform to 84 percent.

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Braun, for his part, He previously said it is “probably time” to introduce therapeutic cannabis among state patients. The comments came alongside a separate poll showing that nearly 9 in 10 Indiana adults (87 percent) support the legalization of marijuana.

The main Republicans in the Legislature, however, They have openly opposed marijuana reform.

“It’s no secret that I’m not,” Senate President Pro Tem Rodric Bray (R) said at the end of 2024. “I don’t have people coming to me with really compelling medical cases to find out why it’s so beneficial. And any situation I’ve seen, it’s passing medical marijuana, it’s basically passing recreational marijuana.”

House Speaker Todd Huston (R) questioned any medical benefits associated with marijuana, calling the substance a “mental health deterrent.” He and others suggested that lawmakers in favor of reform simply want to increase state revenue.

Marihuana Moment is made possible with the help of readers. If you rely on our pro-cannabis journalism to stay informed, consider a monthly Patreon pledge.

Cannabis News

Oakland Launches Nation’s First Cannabis Equity Certification Mark

Published

2 days ago

April 27, 2026

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In 2017, the city of Oakland made history by becoming the first city in the country to launch a Cannabis Equity Program, which helps those affected by the “War on Drugs” enter the cannabis industry and create thriving local businesses. The program changed policy conversations about cannabis equity in California and across the nation.

Now, in an effort to raise awareness about venture capital and help them survive and thrive, Oakland has launched the nation’s first initiative to promote city-certified venture capital businesses in the cannabis industry. The Oakland Legendary Cannabis Certified Equity Label lets buyers know they support businesses that invest in creating high-quality products by prioritizing equity. The label commemorates the city of Oakland as the birthplace of modern cannabis legalization and highlights its operators as legendary pioneers who define cannabis culture and set standards that are now accepted worldwide. Oakland currently has 50 licensed Equity cannabis businesses.

“Oakland continues to lead with courage and conviction. During my time in Congress, I chaired the Cannabis Caucus and called for cannabis equity programs to address the harm done to Black and Brown communities,” said Oakland Mayor Barbara Lee. “Today, the Oakland Legendary label puts power back where it belongs, helping consumers make informed choices and ensuring that those with the most influence lead and thrive in today’s economy. Oakland is proud to lead the way!”

“The City of Oakland is committed to fostering the economic success of local venture capital companies,” said Ashleigh Kanat, director of Oakland’s Department of Economic and Workforce Development. “The Oakland Legendary brand lets consumers know they’re supporting a certified Oakland stock business and getting a true Oakland experience: premium, authentic and locally produced with a story they won’t find anywhere else. This differentiation will increase the presence of cannabis products in the market.”

“The Oakland Legendary brand is the gold standard for quality,” says Dale Sky Jones, Executive Chancellor of Oakland University. “These are the ones who defined the culture and perfected the craft long before there was a legal market. When you buy Oakland Legendary, you’re not just supporting a local business; you’re getting the world’s most authentic, high-caliber cannabis. These brands are true trendsetters, and once you try them, you’ll understand why Oakland remains the epicenter of the world’s finest cannabis.”

“Root’d believes it is extremely important to highlight the brands of operators who were disproportionately impacted by the War on Drugs and educate the consumer on the importance of protecting the equity brands that have shaped the culture and community of cannabis. These core equity brands are the root ecosystem of our culture; the bigger and stronger the roots, the healthier Root’d’s culture McCullough” 510 has a long legacy in the cannabis industry and has been featured on the front page of the New York Times for being one of the first dispensaries in the nation. “It’s important to us that we direct consumers to amazing products and also shop with a purpose.”

Consumers can easily identify Oakland’s legendary certified equity operators through the Oakland Legendary certification mark on packaging, advertisements, and certified equity dealer windows. In a nod to the resilience of the community, the brand’s official positioning is slightly tilted, with the word “Legendary” rising, symbolizing the upward trajectory and sustained growth of Oakland’s capital operators.

The Oakland Legendary awareness campaign includes exclusive use of the certification mark on packaging and marketing materials and “I Hella ♡ Oakland Legendary Cannabis” swag. High-visibility billboards are located along Highway 880 to publicize the program. The public awareness campaign is supported by the National Equity Trade Network.

Source: Oakland