Navigating the Green Frontier: Understanding Cannabis, Hemp, and Marijuana
Navigating the Green Frontier: Understanding Cannabis, Hemp, and Marijuana Estimated reading time: 7 minutes Key Takeaways Cannabis is the umbrella term encompassing both hemp and marijuana, with distinctions based primarily on THC content and legal classification. Hemp contains 0.3% THC or less and serves industrial, agricultural, and wellness purposes, legally recognized since the 2018 Farm Bill. Marijuana refers to THC-rich cannabis (above 0.3% THC) cultivated for psychoactive and therapeutic properties, now legal in over 30 U.S. states. Understanding these distinctions is critical for entrepreneurs, investors, and consumers navigating regulatory, financial, and cultural landscapes in the cannabis industry. Table of Contents Introduction Key Takeaways Cannabis: The Umbrella Term Hemp: The Industrial Powerhouse Marijuana: The Psychoactive Side of Cannabis Why This Distinction Matters Looking Ahead Frequently Asked Questions Ready to Transform Your Business with Steven Mitts? Sources Introduction In the rapidly evolving world of cannabis, understanding the nuanced differences between cannabis, hemp, and marijuana is crucial for consumers, policymakers, entrepreneurs, and investors alike. These terms are often used interchangeably, but each has distinct characteristics that impact their legal status, usage, and market potential. As of October 14, 2025, the cannabis industry continues to experience unprecedented growth and regulatory evolution. As the founder of IV20 Spirits, Steven Mitts has seen firsthand how these distinctions shape product development and business strategy in the cannabis industry. With over 20 years of experience building disruptive products across defense, security, and consumer markets, Steven Mitts brings invaluable expertise to entrepreneurs navigating this complex landscape. Cannabis: The Umbrella Term Cannabis serves as the scientific genus encompassing a family of plants, including both hemp and marijuana. Think of it like this: all marijuana and hemp plants are cannabis, but not all cannabis is marijuana or hemp. Cannabis plants are typically classified into three species: Cannabis sativa, Cannabis indica, and Cannabis ruderalis. While most commercial cultivation today involves hybrids, this botanical classification underpins both industrial and medicinal applications. Cannabis contains over 100 cannabinoids, with THC (tetrahydrocannabinol) and CBD (cannabidiol) being the most notable. THC is responsible for the psychoactive “high,” while CBD is non-intoxicating and associated with various therapeutic benefits. Emerging cannabinoids like CBN, CBG, and THCA are gaining popularity for their unique properties, such as CBN’s sedative potential and CBG’s anti-inflammatory effects. Steven Mitts and SM Services help entrepreneurs understand these scientific distinctions and leverage them for product innovation. Through strategic consulting, Steven Mitts guides businesses in identifying market opportunities within the cannabinoid spectrum, ensuring compliance while maximizing commercial potential. Hemp: The Industrial Powerhouse Hemp refers to Cannabis sativa plants containing 0.3% THC or less by dry weight, as per U.S. federal law. Its negligible THC content means hemp doesn’t produce psychoactive effects, but it offers tremendous versatility. Historically, hemp has been cultivated for industrial and agricultural use, with its fibers used in textiles, construction materials, and bioplastics. Its seeds are nutrient-rich, often cold-pressed for oil or used as a plant-based protein source. In recent years, hemp has become the primary source for CBD extraction in legal wellness markets. The 2018 Farm Bill legalized the regulated cultivation and sale of hemp in the U.S., opening the floodgates for CBD-based businesses. Hemp-derived CBD is now infused into everything from skincare products to sleep aids, creating a booming market projected to surpass $20 billion globally. For entrepreneurs entering the hemp market, understanding regulatory frameworks and supply chain logistics is essential. SM Services provides comprehensive guidance on hemp-based business development, from product formulation to market positioning, helping clients navigate the complexities of this rapidly expanding sector. Marijuana: The Psychoactive Side of Cannabis Marijuana typically refers to Cannabis sativa or indica plants with more than 0.3% THC, cultivated for their psychoactive properties. While “marijuana” is widely used in legal and medical contexts, the term has a controversial history tied to early 20th-century anti-immigrant propaganda. Many industry professionals now prefer terms like “cannabis” or “THC-rich cannabis.” Marijuana is consumed in various forms, including smoked, vaporized, ingested, or applied topically, delivering both recreational highs and therapeutic effects. The medical marijuana movement, which began in California in the 1990s, helped destigmatize cannabis and paved the way for today’s robust legal markets in over 30 U.S. states. Medicinal marijuana is used to treat conditions like chronic pain, epilepsy, PTSD, and nausea related to chemotherapy. Why This Distinction Matters For entrepreneurs operating at the intersection of regulated cannabis and consumer goods, understanding these distinctions is not just academic—it’s regulatory, financial, and cultural. At IV20 Spirits, Steven Mitts has pioneered cannabis-forward innovation in the alcohol space, starting with terpene-infused, non-THC spirits, and now expanding into Delta-9 hemp-derived psychoactive variants of the patented “Lit Joint” bottle. By staying within federal thresholds for THC content, Steven Mitts has created a platform to explore both sensory and psychoactive cannabis experiences under one nationally recognized beverage brand. This strategic approach demonstrates how deep understanding of cannabis distinctions enables innovative product development while maintaining regulatory compliance. SM Services specializes in helping businesses develop similar strategic frameworks, ensuring that product innovation aligns with legal requirements and market opportunities. Whether you’re launching a cannabis brand or pivoting an existing business into the cannabis space, understanding these distinctions is fundamental to success. Looking Ahead With federal rescheduling of cannabis potentially on the horizon, understanding these distinctions will help inform smart regulation and better consumer education. Merging scientific taxonomy with cultural understanding is key to breaking stigma, promoting innovation, and building trust across the cannabis supply chain. As public acceptance and legislative momentum continue to rise, so too must our clarity in communication. Whether you’re building a cannabis brand, investing in cannabis stocks, or simply curious about cannabinoids, knowing the difference between hemp, marijuana, and cannabis can help you navigate this green frontier with greater confidence. Frequently Asked Questions What is the main difference between hemp and marijuana? The primary difference is THC content. Hemp contains 0.3% THC or less by dry weight and is federally legal in the U.S., while marijuana contains more than 0.3% THC and remains federally controlled despite state-level legalization in many areas.