Texas’ hemp industry is bracing for a dramatic shakeup on March 31, when new state restrictions take effect that will fundamentally reshape what consumers can purchase.
Popular smokable products containing Delta-8 THC will vanish from store shelves, leaving retailers with minimal inventory and businesses scrambling to adapt.
“It essentially wipes out 75 to 85 percent of our entire business,” said Kyle Arora, who is one of the many THC business owners across Texas currently bracing for the impact of the new regulations.
The change comes as state leaders seek to close what they view as a legal loophole left by the 2018 federal farm bill, which legalized hemp products containing low levels of Delta-9 THC. Since then, a booming industry has emerged, with Texas retailers selling hemp-derived products that produce a comparable effect to standard marijuana in the forms of vapes, joints and edibles.
Smokable THCa banned, edibles survive
Under the new rules, smokable THCa-the cannabinoid in Texas hemp products that converts into Delta-9 THC when heated -will be virtually eliminated from shelves. Only edibles and THC-infused beverages, which have lower concentrations of THC, are expected to remain legal.
For stores that also sell nicotine and tobacco products, those products will be their primary route to fall back on.
“Banning THCa flower won’t stop people from smoking. It won’t reduce demand. It will just shut down legitimate businesses and push consumers straight to the black market,” said the Texas Hemp Business Council in a statement responding to the new regulations.
AUSTIN, TEXAS – NOVEMBER 21: THC edibles are displayed on shelves at the Austin Smoke & Gift Shop on November 21, 2025 in Austin, Texas. Federal lawmakers have approved a provision that will eradicate hemp products containing more than 0.4 milligrams of THC in the state of Texas. (Photo by Brandon Bell/Getty Images) (Brandon Bell/Getty Images)
Stricter regulations and skyrocketing fees
The Texas Department of State Health Services outlined other sweeping changes this month, including stricter testing standards, child-resistant packaging, clearer labeling, and a major increase in licensing fees-from an annual to $258 to $10,000 for manufacturers and $155 to $5,000 for retail outlets.
According to Lukas Gilkey, a hemp activist and CEO of Austin-based Cannabis company Hometown Hero, these new rules will “essentially require everybody to have to hire additional staff” to keep up with the expected influx of paperwork requirements.
Small businesses brace for impact
Industry leaders warn the shakeup could devastate smaller hemp retailers. “We may or may not be able to adapt and pivot and survive with the new categories,” Arora said.
Some stores will revert back to regular smoke shops that only offer nicotine and tobacco products. But for stores like THC Club in Houston, this is not an easy alternative.
“Businesses like us have built our entire model strictly on hemp-derived cannabis; we don’t have that [nicotine sales] to fall back on,” said Arora.
Lawmakers push for child protection
A coalition of conservative political leaders, law enforcement officials, and health organizations has been aiming for an outright ban on all hemp-derived products for years, viewing the substance as a “poison” in their communities. Â Lt. Gov. Dan Patrick has labeled the THC market in Texas as “unscrupulous” and “exploitative” and argues a ban is the only way to protect children.
Texas Gov. Greg Abbott vetoed last year’s attempt to outlaw hemp entirely, instead leaving agencies like the Texas Department of Health Services to release tighter regulations.
AUSTIN, TX – MAY 27: Lt. Gov. Dan Patrick displays a range of intoxicating THC products available in Texas to illustrate his concerns that seemingly harmless snacks and drinks pose a danger to public health among children and adults. He urged reporters during a news conference to take this story seriously, as Senate Bill 3, which bans all THC products and has been sent to Gov. Greg Abbott’s office, May 28, 2025. (Sara Diggins/Austin American-Statesman via Getty Images) (Austin American-Statesman/Hearst/Houston Chronicle via Getty Imag)
Beginning March 31, the new regulations become law, products will be taken off shelves and the industry will have to adjust-fast.
Arora and other business owners remain hopeful that groups like the Texas Hemp Council will ultimately secure an injunction, though not before the rules take effect.
His message to lawmakers is direct: “Listen to your constituents, the majority of Texans do not want this.”
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This article originally published at Texas hemp crackdown hits March 31-what weed users can still buy.