Cannabis Companies Generate $8B In Texas Where It's Barely Legal: Is Weed Poised To Surpass Wine?

Cannabis businesses in Texas are booming, despite the fact that recreational marijuana is still illegal. In 2022, cannabis companies in Texas brought in over $8 billion in revenue, according to a new report from Whitney Economics. They're edging close and closer to the wine industry, say analysts.

How Did This Happen?

There are now over 60,000 registered medical marijuana patients in Texas who alone are generating between $19.1 billion to $22.4 billion in economic growth for the state. The cannabis industry is also creating jobs. The 50,000 Texans employed in the industry are earning over $1.6 billion in wages

Meanwhile, the wine industry generated more than $20 billion for the Texas economy, according to Wine America, supporting more than 141,000 jobs with nearly $7 billion earned in worker wages.

Should Come As No Surprise: Alcohol Down, Weed Is Up

Aaron Grey of Alliance Global Partners recently shed light on the promising future of the cannabis industry at the Benzinga Cannabis Capital Conference in Miami. He compared weed sales and use to booze.

"Since 2010, cannabis use among ages 21-29 is up 55%, while alcohol use is down 11%. This isn't just a trend, it's a multi-decade growth opportunity," Grey said. 

Texas Medical Marijuana Industry

Texas has a relatively limited MMJ state program, which provides for low-THC oil with less than 1%. There are nine qualifying conditions for MMJ, up from just one since the law went into effect in 2015, thanks to the 2018 Farm Bill.

The Texas Hemp Coalition, a nonprofit dedicated to hemp advocacy and education, called the Whitney Economics report a "landmark study" that "affirms the true value the hemp industry provides our state," reported the Austin Business Journal.

Imagine If Texas Had Fully Legal Weed

With these numbers and the mere fact that medical cannabis/hemp sales are catching up to wine, one can only imagine what might happen when legal cannabis is available in the Lone Star State, with its population of nearly 30,000,000.

High Times first reported this story.

Photo: El Planteo