THE 2025 HEMP BAN – What it means to the CBD Beauty Cosmetic industry?

 

In whole, the new Hemp Ban amendment, set to go in effect in a year, bans the sale of hemp products with more than 0.4 milligrams per container of total delta-9-tetrahydrocannabinol (THC) — a psychoactive cannabinoid, or compound found in the cannabis plant. It also instates the same milligram cap for cannabinoids with similar effects in products and bans cannabinoids synthesized or manufactured outside of the plant. 

CBD products are not explicitly banned, but new federal legislation signed on November 12, 2025, imposes strict new limits on total THC content that could make most existing full-spectrum CBD products illegal. The primary target of the ban is intoxicating hemp products, such as Delta-8 and THCA, but non-intoxicating CBD products with even a low amount of naturally occurring THC may be affected. 

 

The key changes and their implications:

  • Targeted Products: The ban applies to hemp products containing more than 0.4 milligrams of total THC per container, effectively eliminating nearly all intoxicating hemp products currently on the market.
  • Redefinition of Hemp: The law changes the federal definition of “hemp” to include total THC (including THCA) in the calculation, a shift from the previous delta-9 THC only measurement, which made high-THCA “marijuana-like” flower technically legal under the 2018 Farm Bill.
  • Effective Date and Grace Period: The new restrictions on hemp-derived products will take full effect on December 31, 2026, after a one-year grace period starting January 1, 2026. 

The bill does not ban the sale of nonintoxicating cannabidiol (CBD) and industrial hemp products.

THC-infused oils are advertised as having calming effects and potential therapeutic benefits. Brands sell full-spectrum, broad-spectrum and isolate versions of these oils — a rule of thumb that can also be applied to most THC products.

Full-spectrum products contain THC and other compounds while broad-spectrum products contain cannabinoids (which can be synthetic), but not THC. Meanwhile, isolate products contain only one type of THC, such as delta-8 THC.  

Lotions can also contain THC, which early research suggests could be used to treat allergic reactions affecting the skin.

Bodian said the extent of products affected by the bill won’t be clear until the FDA publishes its list on cannabinoid products. 

“Any cannabinoid that isn’t on the list that’s forthcoming from the FDA would not be compliant,” she said. “Even if the cannabinoid is on the list, if it’s manufactured in such a way, it would be prohibited.”

 

What the “Ban” Means for the CBD Beauty Cosmetic Industry

The new legislation, included in a recent government funding bill, fundamentally redefines what constitutes “legal hemp” under federal law, moving beyond the 2018 Farm Bill’s framework. 

  • Strict THC Limit: The law bans any hemp product containing more than 0.4 milligrams of total THC per container. This is a major shift from the previous limit of 0.3% delta-9 THC by dry weight. Industry experts state that even many non-intoxicating, full-spectrum CBD lotions and balms exceed this new milligram cap, making them federally illegal once the grace period ends.
  • Targeting of Specific Cannabinoids: The ban covers all natural and converted forms of THC (including Delta-9, Delta-8, etc.) in various product forms, including topical creams. It also explicitly prohibits cannabinoids that are synthesized or manufactured outside the cannabis plant.
  • Impact on Product Availability: The U.S. Hemp Roundtable estimates this change could wipe out 95% of the $28 billion hemp industry, putting an estimated 300,000 jobs at risk. For the beauty and cosmetic sector, this means a likely industry-wide reformulation of products or an exit from the market for non-compliant brands.
  • Exemptions: The law does not ban all hemp-derived products. Industrial hemp products like grain and fiber, and non-intoxicating hemp seed oil used in some cosmetics (valued for essential fatty acids, not CBD or THC content), should remain protected, provided they meet the new total THC standards.
  • Regulatory Uncertainty: While the FDA has not previously issued a fixed regulation for CBD in cosmetics, it is now required to publish a list of all naturally produced cannabinoids and provide a definition of a “container” within 90 days of the bill’s enactment, which will provide more clarity on enforcement. 

State-licensed cannabis dispensaries are not affected by the new federal legislation targeting hemp-derived THC products. The ban specifically targets unregulated hemp products sold in general retail outlets like gas stations and convenience stores, while regulated dispensaries operate under separate state-specific laws for legal marijuana. 

 

Steps for the Topical CBD Industry

Businesses in the CBD beauty and cosmetic industry have a one-year grace period to adjust before the ban takes effect on November 13, 2026. Recommended actions include: 

  • Conducting comprehensive product testing to assess compliance with the 0.4 mg total THC limit.
  • Evaluating supply chains and contracts.
  • Exploring product reformulation or pivoting business models to operate within state-regulated cannabis markets if feasible.
  • Engaging with trade associations advocating for a legislative correction during the one-year window.