Intoxicating Hemp Beverages and Hemp-Derived Products
Last Updated: January 20, 2026
The Issue
Products derived from the hemp plant that contained less than .3% delta-9 THC became legal with enactment of the 2018 Farm Bill. The law allowed farmers to produce hemp for products like rope and textiles, and also created a market for hemp-derived CBD products and intoxicating hemp products like packaged beverages. As the market for these products proliferated, various states took different stances on the legality of these products, which has created a confusing patchwork of state laws.
To close the so-called “hemp loophole,” Congress enacted legislation that takes effect in November 2026 to limit total THC content, regardless of its source, to a 0.4 mg. threshold per container for any product designated for human or animal consumption. This limit would ban all hemp-derived products currently on the market, including non-intoxicating CBD products, and ban all synthetic THC products such as delta-8 and delta-10.
Retail Impact
Unless Congress changes current law, all hemp-derived products other than those with purely industrial applications will become illegal in November 2026, and most CBD products currently sold in the convenience channel will become illegal to sell. All intoxicating hemp products on the market will also be banned. Legislation has been introduced that seeks to delay the ban.
NACS Position
In some states, hemp-derived products are a growing in-store category. An outright ban on these products could result in the growth of an illicit market similar to illicit vape products. To maintain a level playing field, NACS supports regulation of these products to ensure they are sold legally and responsibly.