Cannabis Beverage Sales Surge as Alcohol Consumption Declines

The popularity of cannabis beverages is on the rise in the United States, with consumers increasingly opting for drinks infused with tetrahydrocannabinol (THC) instead of traditional alcoholic beverages. This shift comes as a notable decrease in alcohol consumption has been reported; a recent July 2023 Gallup survey indicated that only 54% of U.S. adults now drink alcohol, marking the lowest level of consumption since the organization began tracking this data in 1939.

Cannabis drinks, which include a variety of options such as seltzers, juices, sodas, and teas, often also feature cannabidiol (CBD). Proponents of these beverages claim that they can help relieve symptoms of pain and anxiety without the intoxicating effects associated with alcohol. The evolving preferences of consumers are reflected in the market, where sales of THC beverages are projected to increase from $1.1 billion in 2022 to nearly $5.6 billion by 2035, according to Beau Whitney, chief economist at Whitney Economics.

Market Trends and Consumer Preferences

The surge in demand for cannabis-infused drinks is evident as more brands enter the market. Whitney noted that there is a “replacement factor” occurring, where consumers are choosing THC beverages over wine, beer, and spirits. The growing acceptance of cannabis beverages is also highlighted by Michelle Rutter Friberg, director of government relations at the National Cannabis Industry Association. She stated that the innovative growth within the hemp-derived beverage sector signals significant consumer enthusiasm.

Retailers are taking notice of this trend. Major chains, including Target, are beginning to explore the sale of THC beverages. Target has confirmed it is testing these products at select liquor stores in Minnesota, marking a significant step for a large retailer entering the cannabis beverage market. This follows the lead of other retailers like Total Wine & More, which already feature cannabis drinks on their shelves.

Health Considerations of Cannabis Beverages

Despite the appeal of cannabis drinks as healthier alternatives to alcohol, medical professionals caution consumers about potential side effects. According to Dr. Céline Gounder, cannabis can affect various bodily functions, including brain and heart health. Short-term side effects may include anxiety, paranoia, and impaired coordination. “The effects depend on how much cannabis is used, how it’s taken, and how accustomed the user is to it,” Gounder explained.

Long-term use, particularly among adolescents, can lead to lasting cognitive issues and may result in cannabis use disorder, defined as the inability to stop using cannabis despite negative consequences. The potential effects of a cannabis-infused beverage can be felt within 15 to 20 minutes, which is quicker than the onset time for edibles. Dr. Staci Gruber, an associate professor of psychiatry at Harvard Medical School, emphasized the importance of moderation, advising newcomers to be cautious until they understand how a particular product affects them.

This evolving market landscape reflects a significant shift in consumer behavior, particularly among women aged 30 to 40, who are increasingly seeking lower-calorie, non-alcoholic options. Whitney noted that many women are replacing their evening glass of wine with THC beverages, driven by health-conscious choices.

As the cannabis beverage market continues to expand, it remains to be seen how it will reshape the landscape of social drinking and consumer habits in the coming years.