Hemp vs. Cannabis: A Retailer’s Overview

In the cannabinoid marketplace, the terms hemp and cannabis are often used interchangeably, but for retailers and brand partners, the differences are crucial.

Legally, the 2018 Farm Bill created a clear separation: hemp is defined as cannabis containing no more than 0.3% THC on a dry-weight basis, while cannabis (legally referred to as marijuana) contains more than 0.3% THC and remains federally classified as a controlled substance. This distinction shapes how products can be marketed and, more importantly, how they can be distributed. Hemp-derived products can typically cross state lines, while cannabis products must remain within licensed state markets.

Hemp and cannabis also differ in their cannabinoid profiles. Hemp is grown for CBD and other non-intoxicating cannabinoids like CBG and CBN, while cannabis is bred for higher THC levels. As a result, hemp appeals to wellness-focused consumers seeking calm without intoxication, while cannabis caters to recreational and medical users who want THC-driven effects.

The product applications reflect these differences:

• Hemp-derived products often include gummies, chocolates, tinctures, infused beverages, topicals, and even pet wellness products.

• Cannabis-derived products are more commonly found in the form of flower, pre-rolls, concentrates, vape cartridges, and high-THC edibles.

Distribution is another key difference. Hemp products can be scaled nationally with fewer barriers, while cannabis requires strict state licensing and compliance. For retailers, hemp offers broader reach and lower risk, while cannabis presents higher-margin opportunities in localized markets.

Customer education is where retailers can stand out. Many shoppers still ask:

• “Will hemp get me high?”

• “Is hemp legal here?”

• “How does CBD differ from THC?”

Clear, simple answers build trust and position your business as a reliable source.

For retailers and distributors, understanding hemp vs. cannabis is more than terminology—it’s a business advantage. Hemp offers accessibility and flexibility, while cannabis creates opportunities in regulated markets.

At Unwind Distribution, we help partners stock compliant, high-quality hemp products and navigate the complexities of this fast-moving industry.