NAICS Code for Cannabis Industry (Hemp, CBD, Medical & Recreational Marijuana)

There is no single NAICS code for the cannabis industry. Hemp, CBD, medical marijuana, and recreational cannabis businesses are classified based on the primary activity of each establishment—such as growing, manufacturing, wholesaling, or retailing—not on the product itself.

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Quick Verdict: Which NAICS Code Applies?

Primary Activity Suggested NAICS Code Notes
Indoor / greenhouse cannabis or hemp growing 111419 Includes hydroponic and controlled-environment growing
Outdoor / open-field cannabis or hemp growing 111998 Applies regardless of THC or end use
Farm support, trimming, planting, cultivation services 115112 Service providers, not crop owners
CBD, hemp oil, THC extraction & processing 325411 Manufacturing activity, not farming
Cannabis or hemp wholesaling 424590 Raw material & merchant wholesalers
Medical or recreational dispensaries 453998 Retail sales; no cannabis-specific NAICS exists

Critical Warning: Vertically Integrated Cannabis Businesses

Pro tip: Vertical integration is the #1 source of NAICS misclassification in the cannabis industry.

If a business grows, processes, and sells cannabis, each physical establishment must be classified separately based on its dominant activity. A grow facility does not inherit the dispensary’s NAICS code, and a retail dispensary does not inherit the grower’s code—even if owned by the same company.

NAICS assignments are made at the establishment level, not the enterprise or license level.

Process-Based Cannabis Classification (Seed to Sale)

NAICS follows a process-based hierarchy. Cannabis classification depends on where an establishment operates within the supply chain:

  • Growing: Indoor (111419) or outdoor (111998)
  • Farm support: Planting, trimming, cultivation services (115112)
  • Manufacturing: Extraction, refinement, oil processing (325411)
  • Wholesaling: Bulk distribution of flower, seed, or inputs (424590)
  • Retail: Medical or recreational dispensaries (453998)

This logic mirrors official NAICS boundary guidance found in Included vs Excluded Activities.

Cannabis & Hemp Growing: Indoor vs Outdoor

Indoor growing: Classified under NAICS 111419 when cannabis or hemp is grown under cover, in greenhouses, or via hydroponic systems.

Outdoor growing: Classified under NAICS 111998 when crops are grown in open fields, regardless of cannabinoid content.

Cultivation Support & Preparation Services

NAICS 115112 applies to businesses providing planting, soil preparation, trimming, nutrient management, or similar agricultural services where crop ownership is not primary.

CBD Oil, Hemp Oil & THC Manufacturing

Extraction and processing operations typically fall under NAICS 325411 — Medicinal and Botanical Manufacturing, covering botanical oil and chemical processing activities.

Cannabis & Hemp Wholesalers

NAICS 424590 applies to merchant wholesalers distributing cannabis flower, seed, hemp inputs, or raw materials to retailers or processors.

Medical & Recreational Cannabis Dispensaries

Dispensaries are typically classified under NAICS 453998. NAICS does not currently provide a cannabis-specific retail code.

Risk Control: Common Cannabis NAICS Errors

  • License-based coding: State cannabis licenses do not determine NAICS
  • Product-based coding: Cannabis type does not override process
  • Vertical integration overlap: One code incorrectly applied to all facilities
  • Retail vs manufacturing confusion: Extraction is not retail

For compliance-driven use cases, reference NAICS Codes for Government Programs & Compliance.

To browse official definitions, use the NAICS Code Lookup Directory.