By Lars Miller, creator of Herbal Profiles
I first tried a cannabis beverage, Cann, in 2021 from a regulated dispensary in Chicago. I loved the experience, but I didn’t live in a legal state. So, when I went back home, I continued to drink alcohol. Fast forward to 2022: I found out I could get Cann delivered directly to my house in Indiana due to the 2018 Farm Bill.Â
I loved it. After moving to Florida in 2023, I started regularly ordering Cann and discovering new brands, too. I was drinking more cannabis beverages (and non-alcoholic beers) and less alcohol. I didn’t even intentionally quit drinking alcohol. I just realized after about two months that I hadn’t had any and, honestly, I never felt the need to go back.
Today, I publish the Herbal Profiles newsletter, where I explore the cannabis beverage industry and share insights, job listings, founder spotlights, and brand reviews. My goal is to foster a community around these healthier alternatives to alcohol. I also aim to amplify and normalize the THC beverage category. While still in its infancy, it is poised for significant growth.Â
Today’s THC beverage market
The category does have a modest market share compared to the larger cannabis and alcohol markets. But the landscape is changing every day, driven by shifting consumer preferences and new retail opportunities.Â
The cannabis beverage market is projected to reach $117 billion by 2032, reflecting a compound annual growth rate of 58% from 2024 to 2032. This growth is driven by increasing legalization, consumer interest in health and wellness products, and innovative product offerings.
In California, the regulated cannabis industry reported revenues of approximately $2.5 billion over a recent six-month period, with THC beverages contributing around $35 million. Low-dose options (10mg and under) accounted for $3.4 million of this total.
This relatively small share is due to the retail situation. The traditional dispensary channel is not the optimal location for these beverages; people shopping there want high-potency products. For dispensaries, low dose beverages don’t move and stocking them can be costly.
Redefining retail: expanding THC beverage sales
In a liquor store or grocery store—where people are already shopping for beverages—cannabis beverages move quickly. There’s a pilot program in California where a chain of 42 liquor stores has been selling hemp-based beverages, showcasing their vast potential in traditional retail settings. The program revealed that a single order of hemp-based beverages could outsell the entire under-10mg THC beverage segment in dispensaries—roughly a two-week inventory. If such operations were scaled statewide or nationally, the footprint and visibility of THC beverages would increase dramatically.
Introducing THC beverages into liquor stores aligns them with an environment well-versed in handling regulated substances. This strategy not only leverages existing infrastructure, but also gives these beverage brands access to a customer base already familiar with age-restricted products.
The benefits include convenient consumer access to THC products and the normalization of cannabis in mainstream shopping venues. For example, I recently went to a local Total Wine & More and was in and out in under five minutes with my THC bevs—while also grabbing a bottle of wine for my wife.
Final thoughts
The THC beverage market is on the brink of significant growth. By integrating these products into established retail channels, leveraging the health and wellness trend, and continuing to innovate, the industry can unlock substantial potential. The pilot programs and current market trends provide a clear blueprint for success—a blueprint that could be replicated across the country to help the THC beverage market flourish.
As the market continues to grow, it’s essential to stay informed about regulatory changes, consumer preferences, and technological advancements that could shape the future of THC beverages. With the right strategies and a focus on innovation, the THC beverage category is set to become a major player in the cannabis industry.
About the author
Lars Miller is a content strategist and creator of Herbal profiles, the go-to newsletter for cannabis beverages. Every week, he explores the cannabis beverage industry and shares insights, job listings, founder spotlights, and brand reviews. Subscribe here.
Dry Atlas is a media company focused on alcohol alternatives. We deliver non-alcoholic beverage news, insights, and recs to over five million people annually. To stay up to date on all things non-alc, subscribe to our weekly newsletter.
