A huge generational shift in attitude toward alcohol is ongoing, with younger generations consuming less and more people considering alcohol consumption to be harmful, even in moderation.
And wariness toward alcohol has left an inevitable gap in the market, as while younger generations are shying away from alcohol consumption, they still want beverage options when they’re out or when they want to unwind.
Enter the cannabis cocktail.
What Are Cannabis Cocktails?
A cannabis cocktail is a drink infused with cannabis-derived compounds, like cannabidiol (CBD) or tetrahydrocannabinol (THC). Cannabis cocktails combine these ingredients with traditional cocktail ingredients like ice, garnishing and various flavorings in the same way a mocktail would. However, with these drinks, you’re subbing out the alcohol for THD or CBD rather than making the drink virgin.
Across the United States, CBD cocktails are widely accepted across the United States, given that CBD is federally legal, though legality can differ in different states.
THC cocktails are generally restricted to states where recreational cannabis is legal, though some legalities can vary depending on state or federal legislature.
What Is The Impact On The Alcohol Industry?
According to Fortune Business Insights, the global cannabis beverage market was $2.4 billion in 2023 and is projected to grow to $117.05 billion by 2032. The cannabis beverage market is dominated by North America, which in 2023 made up a market share of 21.14 percent. The cannabis beverage market in the U.S. is estimated to reach $81.44 billion by 2032.
“Demand for cannabis-infused beverages is certainly growing while the demand for alcohol had declined in recent years,” Meenakshi Subbaraman, MS, Ph.D., a program director and biostatistician with Behavioral Health and Recovery Studies at the Public Health Institute told Newsweek.
Diana Eberlein, chair of the Coalition for Adult Beverage Alternatives, echoed Subbaraman’s sentiment. She said that “beer and wine sales have declined by approximately 5 percent since 2023, but the non-alc beer sales have surged by over 25 percent (over $800 million).”
The U.S. alcoholic beverages market was evaluated at $2.5 trillion in 2024 and is projected to grow to $5.7 trillion by 2032. Though this market is priced significantly higher than the cannabis beverage market, the projected growth for the alcohol industry is 10.74 percent until 2032, while the projected growth of the cannabis beverage market is over 4000 percent for the same period.
A 2024 report showed that only 62 percent of U.S. adults consumed alcohol, a decrease from 65 percent back in 2019. Recent advice from the U.S. Surgeon General linking alcohol consumption to cancer has heightened health concerns and may potentially influence consumer behavior.
How Do Cannabis Drinks Compare To Alcoholic Beverages?
There is a marked difference between the two beverages, particularly through a health lens, as alcohol is linked to liver disease, addiction, cancer and cognitive decline. Less research exists into cannabis cocktails, though chronic use of cannabis can have impacts on memory and mental health.
Subbaraman told Newsweek, “Cannabis is generally far less harmful than alcohol, so cannabis drinks are likely less harmful than alcohol with fewer aftereffects.”
Jamie Evans, an author and founder of the Herb Somm and co-founder of The Herbal Cocktail Co., told Newsweek that “when consumed at a low dose, cannabis drinks have the potential to enhance any event or occasion, stimulate conversation, and uplift participants, very similar to alcohol.”
Eberlin noted, “While we have some data that would indicate that there has been a decline in violent crime and car accidents in areas where these products are accessible to adult consumers, there is a lack of research and traceable data that would provide more definitive trends and patterns.”
“With alcohol on the decline, distributors and retailers see THC beverages as an alternative that fills their trucks and retail shelves,” Eberlin added.
Who Is Drinking Cannabis Cocktails?
Consumption of cannabis cocktails is growing in multiple demographics.
“Where we’ve seen the largest growth is with the ‘soccer mom,’ 35-50 years of age,” Eberlein said.
“Brands that target a more mainstream lifestyle, versus the ‘stoner’ or stereotypical ‘cannabis user,’ appeal to those either new or returning to cannabis, seeking a discreet and consistent method of consumption,” she added.
“Younger consumers are driving increased demand,” Evans said. “There’s growing adoption of living an alcohol-free lifestyle, especially within the millennial and Gen Z communities. All of these key growth drivers benefit cannabis beverages and their popularity.”
Are Cannabis Cocktails A Viable Replacement For Alcoholic Drinks?
“While still a nascent category, cannabis-infused beverages are an exciting alternative to alcohol and continue to grow in popularity as production increases across the U.S.,” Evans said, adding, “I will always stand behind a well-made alcoholic cocktail. Cannabis cocktails make a fantastic alternative, especially when served with a low dose of THC.”
Eberlein told Newsweek that it’s not an either-or when it comes to alcohol and cannabis.
“When I’m out with my girlfriends, I love splitting a bottle of wine; when I’m at a baseball game in the summer, I want a cold light beer; and when I’m at home looking to take the edge off on a Tuesday, I want a THC beverage,” she said.
But it’s dependent on person to person.
“Cannabis cocktails are a viable replacement for alcohol for some people, like those trying to cut down on alcohol. But alcohol and cannabis have really different effects, e.g., alcohol can be stimulating while cannabis usually isn’t,” Subbaraman said.
“I don’t think they will ever fully replace alcoholic drinks,” Subbaraman added.
Evans told Newsweek that “consumers are seeking alternatives to alcohol as health-conscious purchasing trends continue to rise.”
“From spritzes and aperitifs to sparkling tonics, non-alcoholic wine, and more, there’s something for everyone (and it’s infused with cannabis!).”
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