Drug Rehab USA recently surveyed “1,000 employed adults about what they reach for after work, how quickly they do it, and why.” The survey asked working consumers about their use of many substances, including alcohol, nicotine, and cannabis. Cannabis drinks seemed to be featured prominently in the survey’s results.
“24% of Americans have at least partially replaced alcohol with non-alcoholic or cannabis drinks, led by Gen Z and millennials, 1 in 3 of whom now regularly drink THC-based beverages.” the surveyors stated in their ‘key findings.’
“66% of Americans have tried alternatives to alcohol in the past 6 months, with seltzers and sparkling water (31%), cannabis drinks (27%), and non-alcoholic beers or mocktails (20%) leading the way.” they also wrote.
Cannabis drinks are proving to be big business in the United States, as demonstrated by the results of a recently published market analysis by Whitney Economics (WE). Two dozen states have adopted adult-use legalization measures in the U.S., and forty states have adopted medical cannabis legalization measures. Washington D.C. has approved both.
“A confluence of factors, including shifting consumer behavior, economic softening and federal regulatory changes, combined to open the doors to a rapid expansion of THC beverages across the United States,” WE Chief Economist Beau Whitney said in a press release. “The emergence of THC beverage products has provided a solution that helps backfill declining revenues across multiple industries, including beer, wine and distilled spirits.”
The Whitney Economics analysis also determined the following about the cannabis drinks and beverages sector of the U.S. market:
- The total potential market is valued, conservatively, at between $9.9 billion and $14.9 billion
- Legal sales in the U.S. were $1.0 billion and $1.3 billion, meaning that there is still huge upside potential in this market
- There are roughly 500 – 750 brands in this space nationally, roughly 200 of which were selling via marijuana dispensaries
- Most brands average $2.0 million per year while top brands can easily exceed $10 million or more in annual sales
- At the time of the report, THC beverages are legal in 28 states, legal but restricted in another nine, can only be sold in marijuana stores in seven and completely illegal in six states
- With the lack of a federal regulatory framework, state regulators are struggling with how to establish effective policies that protect consumers while allowing for the growth and expansion of the market
- THC beverage production involved an extended supply chain and testing at multiple stages of production. Much more so than traditional marijuana testing
- THC beverage growth will be sustained over the next decade, but the near terms forecast will be influenced by policy changes at both the state and federal levels
“The cannabis beverage market is gaining serious traction, but we’re still in the early innings. With consumer demand rising and alcohol moderation trends accelerating, THC beverages are helping shape a new kind of drinking culture — one rooted in control, wellness, and enjoyment,” Art Massolo, Vice President of Business Development, Cycling Frog (one of the report’s sponsors) said. “This report shines an important light on where the market is headed next.”
Going back to the results of the Drug Rehab USA survey, many working consumers are reportedly turning to cannabis drinks and beverages to unwind after their shifts are over as part of a growing trend of workers transitioning away from alcohol use.
“66% of Americans have tried alternatives to alcohol in the past 6 months, with seltzers and sparkling water (31%), cannabis drinks (27%), and non-alcoholic beers or mocktails (20%) leading the way.” Drug Rehab USA stated about its survey findings. “To unwind after work, 45% drink alcohol, while 24% use nicotine, 20% turn to cannabis, and 16% choose alcohol alternatives like mocktails, non-alcoholic beer, or CBD.”