Illinois Hemp Industry Supports Nearly 13,500 Jobs and $2.7 Billion in Revenue, Analysis Finds

A newly released economic analysis finds that Illinois’s hemp-derived cannabinoid industry has grown into a multibillion-dollar economic engine and that proposed restrictions or outright bans (such as one currently being considered by the Chicago City Council) would likely result in widespread business closures, job losses, and declining state and local tax revenues. The report, prepared by Whitney Economics and released December 15, examined survey data from Illinois hemp retailers, manufacturers, and distributors collected in March 2025. According to the analysis, roughly 1,014 businesses support hemp-based retail activity across the state, generating more than $2.7 billion in total revenue when retail, wholesale, and manufacturing activity are combined. The broader economic impact tied to those operations is estimated at $6.5 billion statewide, with approximately $169.1 million flowing to state and local governments through various taxes.

Employment figures outlined in the study underscore the sector’s footprint. Excluding cultivation, the hemp-derived cannabinoid industry employs nearly 13,500 workers in Illinois and pays more than $545 million annually in wages. Retail accounts for roughly 4,750 jobs, while wholesalers employ about 6,300 workers and manufacturers another 2,500, reflecting Illinois’s role as a regional distribution hub for neighboring states.

Chicago alone accounts for a sizable share of the activity. The city is home to approximately 220 identified hemp retailers, which collectively generate about $475 million in annual sales, with CBD products adding an estimated $30 million more. Retail sales taxes from those businesses bring in roughly $31 million per year for the city, in addition to between $5.0 million and $7.5 million in licensing fees. Retail employment in Chicago is estimated at between 1,030 and 1,250 workers, earning more than $37 million in wages.