Cannabis beverages are the latest “trend” in cannabis consumption methods. But are cannabis beverages simply a trend? Research says “no.” In 2023, the global cannabis beverages market size was valued at USD $1.16 billion. From 2024, the market is projected to grow at a CAGR of 19.2 percent to reach $3.8 billion by 2030.
So what’s driving the increase in the consumption of cannabis-infused drinks? Today’s consumers are gradually becoming more health conscious and wary of the materials they put in their bodies. For example, only 62 percent of adults under age 35 drink alcohol. This number decreased from 72 percent just two decades ago.
In fact, cannabis consumption, as a whole, is on the rise. A study from 2022 found that 17.7 million people reported daily or near-daily marijuana use. Meanwhile, 14.7 million people reported drinking at the same frequency.
It appears that the scales are tipping toward cannabis use and veering away from alcohol. And yes, Big Alcohol feels threatened. A recent Marijuana Moment article claims that Big Alcohol is experiencing a slump in sales of wine and spirits—in 2023 alone, total beverage alcohol volumes in the US decreased by 3 percent.
Why? This decline is partly due to consumers choosing to live an alcohol-free lifestyle (45 percent of millennials now demand no-alcohol products) and the increased consumer access to legal cannabis, including cannabis-infused beverages.
Therefore, it’s hardly surprising that Big Alcohol is looking to step into the cannabis beverage market. For instance, The Boston Beer Company, which owns brands Samuel Adams Boston Lager, Twisted Tea, Truly hard seltzer and Angry Orchard, has already entered the cannabis beverage market. In 2022, The Boston Beer Company introduced its TeaPot cannabis-infused iced teas in Canada.
As cannabis legalization becomes more widespread throughout the U.S., we can only expect to see additional companies in Big Alcohol break through the cannabis beverage market to diversify their revenue and make up for profit loss on declining alcohol sales.
The real question is:Is Big Alcohol’s push into cannabis beverages a sign of progress or a potential problem?
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Here’s what we know: Having Big Alcohol in the corner of cannabis-infused beverages can help normalize the use of cannabis. It can also provide cannabis drinks to a wider audience and better distribution channels. Even Total Wine & More, an American alcohol retailer is partnering with cannabis brands to sell infused seltzers. Big Alcohol’s involvement might also push for clearer, safer regulations in cannabis products.
All of the above would be great, of course. But what would happen to smaller cannabis brands that have been steadily making a name for themselves in the industry? Would Big Alcohol buy them up and take over control of the cannabis beverage industry? Would alcohol tycoons sweep these smaller cannabis brands off their feet and out of business, intentionally or unintentionally?
Other concerns include that Big Alcohol prioritizes profit over quality and if they begin to dominate the cannabis beverage space, infused drinks may become watered down and even less effective. Not to mention, the additives Big Alcohol adds to wine, beer and other spirits are far from healthy. In fact, alcoholic beverages are known to “contain a variety of carcinogenic contaminants that are introduced during fermentation and production, such as nitrosamines, asbestos fibers, phenols, and hydrocarbons.”
Is this the future we want for cannabis consumers?
These are the concerns many cannabis business leaders are voicing today. Monica Olano, founder and CEO of Cali Sober Mom and cannabis reform advocate, was quoted in the Cannabis Regulator article, “Cannabis Businesses Selling Out to Big Alcohol,” stating, “Studies have shown that alcohol brands use additives in their products that are linked to cancer. Are we going to let the hemp and cannabis industry sell out to [Big Alcohol] and potentially taint our wellness product with harmful additives? This would erase a lot of hard work the industry has done to create safer, healthier alternatives to alcohol with a focus on wellness.”
So what’s the answer to the question: Is Big Alcohol’s push into cannabis beverages more of a progress or a problem?
Here’s the deal. Big Alcohol’s role in the cannabis beverages market will bring both opportunities and challenges. What consumers should be wary of when purchasing cannabis-infused drinks is the ingredients, especially as more alcohol leaders step into the cannabis industry. If you’re looking to indulge in a cannabis seltzer for wellness benefits, make sure there are no harmful additives in the drink you choose.
As cannabis business leaders, it’s important to voice your concerns but also be open to the possibility of Big Alcohol entering the cannabis market. Look for ways to collaborate rather than to dominate or to be dominated.
In the coming years, I expect to see Big Alcohol brands partnering with small to mid-sized cannabis companies to create cannabis products at scale. The best-case scenario is for these industries to come together to meet consumer demand and health concerns at face value.
H/T: www.rollingstone.com
