THC drinks have been around for several years, yet it’s only in the last year or so that they’ve begun generating significant attention (and category growth). The rise of THC-infused beverages is impacting alcohol sales in the US, driven by shifting consumer preferences, health considerations, and the regulatory environment (both nationally and in each state).
Key Trends and Market Impact
- Declining Alcohol Consumption: Alcohol use is decreasing, particularly among younger adults. A 2023 Gallup study indicated a 10 percentage point drop in alcohol consumption among 18- to 34-year-olds over two decades, from 72% to 62%. Times Union
- Surging THC Beverage Sales: THC-infused drinks are gaining a foothold as an alternative to traditional alcoholic beverages. Some retail markets report that THC drinks now account for rounghly 15% of their total sales. Finshots+1Fox Business+1
- Rapid Market Growth: The U.S. cannabis beverage market, valued at $2.4 billion in 2023, is projected to grow to $117.05 billion by 2032. Public Health Institute
Factors Driving the Shift
- Health and Wellness: With the plethora of warnings over the past few years, consumers are increasingly seeking healthier alternatives to alcohol. THC beverages, which are often low-calorie (and hangover-free), appeal to many people who are looking to catch a different kind of buzz.
- Society is Evolving: Movements like “Dry January” and the “Sober Curious” trend reflect a growing interest in moderation and alternative social lubricants, contributing to the rise of THC beverages. Times Union
Alcohol Industry Wakes Up
- Alcohol Industry Adaptation: Major alcohol companies are investing in the cannabis beverage sector to diversify their portfolios. Constellation Brands for example invested $5 billion in Canopy Growth, a Canadian cannabis company, to develop THC beverages. Finshots+1Wikipedia+1
- Product Innovation: Major alcohol brands like Pabst Blue Ribbon have introduced THC-infused seltzers, aiming to capture the interest of consumers seeking alternatives to traditional alcoholic drinks. Wikipedia