Hemp vs. Marijuana: A Complete Guide for Retailers and Businesses

As the cannabis industry is growing rapidly, it presents both opportunities and challenges for retailers. The foundational growth of businesses in the cannabis market lies in understanding the difference between hemp and marijuana. 

Hemp and marijuana vary in many key areas, including chemical composition, legal status, labeling, market regulations, and more. If you are a retailer or reseller seeking to expand your cannabis business, these differences can impact your legal obligations and commercial success. 

Therefore, learning all the key distinctions can help retailers develop more effective strategies and target their markets more accurately. In this detailed guide, you will understand the difference between hemp and marijuana in various aspects that will help you stay compliant, maintain customer trust, and expand your business.

Hemp vs. Marijuana: Understanding the Basics 

Many people often think that hemp and marijuana are different species of cannabis plants, but that’s not the truth. Hemp and marijuana both originate from the Cannabis sativa plant and are classified differently based on tetrahydrocannabinol (THC) content. THC is a psychoactive compound that produces “high” effects in the body. 

Hemp is typically a mix of both male and female cannabis plants and contains 0.3% THC or less on a dry weight. Moreover, it contains a large proportion of cannabidiol (CBD) that is associated with producing non-intoxicating effects; thus, hemp is usually non-psychoactive in its properties. 

The hemp plant has more fiber, so it is mostly used in industries (fiber, textiles). It is also popular in the wellness and food industry, where it is used in making products like CBD oils, hemp seeds, etc. 

On the other hand, marijuana is the part of the female Cannabis Sativa plant that contains a large amount of THC, ranging from 0.3% to 30%, and a small amount of CBD. It is commonly cultivated under specific conditions to maximize its “high” psychoactive effects and is used for recreational and medicinal purposes, like the management of chronic pain, epilepsy, nausea, and many other medical conditions. 

Key Differences between Hemp and Marijuana for Retailers

For retailers, understanding the difference between hemp and marijuana is not just about gaining knowledge but also about analyzing the market trends and making business strategies that lead them toward the success of their brand. 

Here are the key differences between hemp and marijuana in terms of their product usage, legal status, marketing requirements, and more. 

1.   Legal Status

Legal differences between hemp and marijuana are important because they determine how products are used, labeled, sold, and distributed in the market. The hemp is legal under the federal 2018 Farm Bill because it contains low THC content (less than 0.3%).

 This bill has legalized the consumption, cultivation, and sale of hemp and hemp-derived products such as CBD products, nutritional supplements, seed milk, etc. However, marijuana comes under the category of Schedule I controlled substances at the federal level in the US. 

In some US states, marijuana can be used for recreational and medicinal purposes under strict regulations, but other states have banned it entirely. As a result, marijuana presents a complex legal situation. So, before possessing or handling marijuana-based products, retailers need to get familiar with specific state laws. 

2.   Product Sourcing 

Product sourcing is the process of finding, selecting, and acquiring products while considering strict supply chain implications. Although hemp is legal in the US at the federal level, it faces challenges because of poor infrastructure processing, which results in supply delays and shortages and enhanced logistic costs. 

While marijuana products are illegal at the federal level, they must only be sourced from licensed wholesale suppliers. Moreover, the transport of marijuana products from state to state is prohibited, so in-state suppliers are preferred. Thus, marijuana supply chains are complex and require strict compliance with the regulations.

3.   Labeling and Marketing 

Hemp-derived products generally follow the general FDA rules for labeling, including accurate ingredient lists, no false or misleading information, representation of THC content below 0.3%, and non-psychoactive effects. These products can be marketed freely and sold online and shipped across states. 

On the other hand, Marijuana products have strict state-to-state labeling and marketing laws. These laws include THC content, warning labels, child-proof packaging, and adult-use-only signs. To market the marijuana products, retailers must gain approval from the concerned department of the state. 

4.   Consumer Experiences

As both hemp and marijuana have different properties, so do their experiences. Hemp products are typically ingested (in capsules, beverages) or applied topically (in soft gels, lotions) and are ideal for consumers who seek pain relief, relaxation, and other benefits without experiencing a high.

However, marijuana products are usually smoked, vaped, or used as edibles and provide potent “high” effects. These products are preferred by consumers who want relief from chronic pain, insomnia, or stress. 

Why Retailers Need to Understand the Difference?

Knowing the distinctions between hemp and marijuana is essential for retailers for various reasons. As the global market of cannabis products is growing, understanding the difference between hemp and marijuana can help retailers navigate the market dynamics, target the right products for customers, and make informed decisions.

Moreover, in 2025, the regulatory environment of hemp and marijuana products is continuously evolving. This influences everything, such as the product availability, accessibility, sourcing, and labeling requirements for both retailers and consumers. 

Hemp-derived products are usually sold under state laws, while marijuana products are restricted under state laws and require proper licensing. Retailers who know hemp and marijuana can better align their businesses based on consumer demands and regulatory trends.

Another key requirement that makes it necessary for retailers to know the difference between hemp and marijuana is to educate consumers. Retailers must properly guide consumers about the psychoactive effects, dosages, legal limits, benefits, and side effects of both hemp and marijuana. It helps retailers build customers’ trust and avoid false claims about the products. 

Final Thoughts  

For retailers and B2B buyers, comprehending the differences between marijuana and hemp is important because it impacts business strategy and decision-making. Knowing about the product, its uses, and regulations can help retailers operate their business efficiently and market their products more effectively.

If you are a retailer or B2B buyer looking for cannabis products, visit our wholesale inventory to get the best quality hemp and marijuana-derived products at competitive prices.