As state-level regulations shift rapidly, functional beverage makers must navigate a fragmented landscape where access, compliance and strategy vary dramatically by market

The regulatory environment for hemp-derived cannabinoids continues to evolve at a rapid pace, and recent developments in Ohio and Texas highlight just how fragmented – and consequential – these changes can be for beverage manufacturers, retailers and distributors.

In Ohio, the passage of Senate Bill 56 marks a significant shift. The law effectively bans the sale of most hemp-derived THC beverages, as well as edibles and other intoxicating hemp products, outside of licensed medical or adult-use cannabis dispensaries. For functional beverage brands operating in the hemp channel, this represents a near-total loss of access to traditional retail environments such as grocery stores, convenience outlets and liquor stores.

Even more notably, the law prohibits consumers from bringing hemp-derived THC beverages purchased in other states into Ohio, adding a layer of enforcement that extends beyond in-state commerce. While breweries and industry stakeholders have filed legal challenges, with litigation pending before the Ohio Supreme Court as of late March 2026, the immediate impact is clear: Ohio has become one of the most restrictive markets for hemp THC beverages in the country. Click here for more details on Ohio’s Senate Bill 56.

In contrast, Texas has taken a more nuanced regulatory approach. Rather than implementing an outright ban, the state has focused on tightening how total THC is calculated in hemp-derived products. By refining the “math” used to determine compliance – particularly around total THC versus delta-9 THC concentration – Texas regulators are aiming to close perceived loopholes while still allowing certain consumable products to remain on the market.

This distinction is critical for beverage manufacturers. While Texas remains a viable market, it now demands a higher level of precision in formulation, testing and labeling. Brands must ensure their products meet stricter thresholds, often requiring reformulation or enhanced quality assurance protocols to stay compliant. For a broader overview of hemp regulations in Texas, click here.

For B2B operators, these diverging paths underscore a larger industry reality: there is no such thing as a “national” hemp strategy. Instead, success depends on building flexible, state-specific approaches to product development, distribution and compliance.

This includes investing in robust regulatory monitoring, working closely with legal counsel and developing adaptable formulations that can be adjusted based on jurisdictional requirements. It also reinforces the importance of clear documentation, accurate labeling and reliable testing – especially as states like Texas increase scrutiny without eliminating market access entirely.

At the same time, brands must be prepared for continued volatility. Hemp laws are currently in flux due to ongoing litigation and evolving policy priorities at the state level. What is permissible today may change tomorrow, making agility a key competitive advantage.

For functional beverage companies, the takeaway is clear: regulatory strategy is no longer a back-office function – it’s central to market access and long-term growth. Navigating this complexity successfully will separate the brands that scale from those that stall. For advice on how to stay ahead of trends and regulations, contact the experts at Volunteer Botanicals.