Updated 3/11/2024 at 2:33 p.m. to include a complete list of cannabinoids included in the market size estimate; (cannabidiol (CBD) is not included)
The U.S. market for Delta-8 THC and other hemp-derived cannabinoids has increased a whopping 1,283% in just three years, growing from $200.5 million in sales 2020 to nearly $2.8 billion in 2023, according to cannabis data and analytics firm Brightfield Group.
By comparison, the U.S. state-regulated adult-use and medical cannabis industry dwarfs the hemp-derived cannabinoid market with sales of nearly $31.8 billion in 2023, according to Brightfield data. California’s and Michigan’s regulated adult-use and medical markets alone each top the minor cannabinoid market’s total sales with nearly $5.1 billion and $3 billion, respectively, according to data compiled by Cannabis Business Times.
Delta-8 THC Captures the Lion’s Share of Sales
Delta-8 THC (short for delta-8 tetrahydrocannabinol)—a psychoactive compound that occurs naturally in small amounts in cannabis but is most commonly “converted in a lab from cannabidiol (CBD) and Delta-9-tetrahydrocannabinol (THC),” Dr. Ethan Russo told Cannabis Business Times in March 2021—tops the sales charts for hemp-derived cannabinoids by a landslide, generating $1.2 billion in sales in 2023 and comprising 44% of the U.S. market, according to Brightfield.
Hemp-derived Delta-9 THC is second in market share, followed by THCA, HHC and Delta-10 THC.
RELATED: Hemp-Derived Delta-9 THC: What’s Next?
“The explosion of the hemp-derived THC market is clearly a thorn in the side of the legal cannabis industry,” Brightfield Group Managing Director Bethany Gomez told CBT. “While hemp-derived THC is exploding in many areas of the country, established recreational cannabis markets are struggling under intense competition and heavy tax burdens. They cannot compete on price and convenience with the unregulated hemp-derived THC market. Many consumers don’t understand the difference between regulated cannabis and hemp-derived THC, creating both confusion and opportunities for brands eyeing national expansion.”
Cannabinoids included in Brightfield’s report and market-size estimate are:
- Delta-10
- Delta-8
- Delta-9
- Delta-9O
- HHC
- THCA
- THCH
- THCJD
- THCO
- THCP
- THCV
Also included are sales by product type (e.g., flower/pre-rolls, vapes, drinks). You can access the free report here.
With a state patchwork of regulations developing around both hemp-derived Delta-8 and Delta-9 THC, as well as other psychoactive hemp-derived cannabinoids, time will tell what this market’s future is. But for now, hemp-derived products’ availability everywhere from unlicensed retailers to gas stations has no doubt helped fuel this massive growth surge.