Are Cannabis-infused drinks the future of the beverage industry?

From Dry January to legal weed, the beverage market is being forced to adapt with new cannabis-infused beverages.

According to data from Seattle-based cannabis analytics firm Headset, sales of cannabis-infused beverages increased 40.3% in 2020 versus 2019 across recreational markets in California, Colorado, Nevada, Oregon (medical and adult use) and Washington state.

Why are more people drinking THC beverages?

Could it be lifestyle changes during the pandemic? New approaches to work from home? The bender appears to be over for booming booze sales sparked by the pandemic. During peak stay-at-home orders, retail alcohol sales shot up as much as 55% in March 2020 with spirits, wine and beer among the top sellers.

For the first time in a year, since Covid-19 began spreading across the United States forcing Americans to stay home, retail alcohol sales have fallen. That’s according to data from Nielsen, which reported that total sales declined 1.9% for the week ending March 13.

Healthy options for the New Year

Marijuana beverage companies, for example, have been cashing in on health-related trends such as Dry January, when alcohol drinkers abstain for the month and look for alternative ways to relax. Studies have shown that cannabis helps our bodies regulate stress response.

Smaller brands – Wunder, Cann, Rebel Coast, Fable, verywell, Little Saints, to name a few – use botanical extracts and natural flavors to provide a more interesting approach to non alcoholic options.

Beer sales are declining

Cannabis-infused beverages are expanding flavor options and overall experience. 

But in general, beer sales are showing new downward trends for the first time in decades. 

“It’s a hard time to be in the beer business,” said Harvard University’s Stephen Kaufman, a senior lecturer who evaluated Molson Coors’ cannabis strategy last month on a Harvard Business Review podcast.

Who drinks what?

• Baby boomers and Generation X: 50% of alcohol consumption is in beer.
• Millennials: only 25% of alcohol consumption is in beer, with the rest in wine and hard liquor.
• Generation Z: just 12.5% of alcohol consumption is in beer

As cannabis regulation changes around the United States, products are changing, too. From gummies, edibles, and tinctures, beverages make up a small portion of the market. But they may be more available for the average consumer. To put it simply, beverages are more approachable and easier to integrate into your normal daily life. 

These Cannabis-infused beverages are going to remain stuck in research and development until more nations join Canada and regulate drinks for national and international distribution.