California’s pot companies are increasingly abandoning the state’s legal marijuana market in favour of the burgeoning hemp industry, driven by a host of economic and regulatory advantages. Entrepreneurs like Kim Howard of Green Bee Botanicals have found the shift to hemp invigorating, escaping the high taxes and stringent regulations that plague the marijuana sector. Hemp, which remains federally legal, allows companies to sell in 30 states without the burdensome restrictions of the marijuana market. This pivot not only reduces operational costs but also opens up expansive new markets, as seen with companies like Wyld and Rose, which have successfully transitioned their THC-rich products to the hemp sector.

Despite the allure of hemp’s lower regulatory barriers, the shift is causing upheaval within the cannabis industry. The migration has perplexed regulators and sparked tension between hemp and marijuana businesses, particularly due to the lack of strict regulations governing hemp products. Concerns have been raised about the accessibility of intoxicating hemp products to minors, as they circumvent the safety checks mandatory for marijuana. California lawmakers have attempted to address these disparities with new legislative proposals, but the hemp industry continues to flourish.

Source: SFGate