U.S. THC beverage sales exceeded $1 billion in 2024 and are expected to expand exponentially.
According to a Whitney Economics report, most brands sell $2 million, and top brands can easily exceed $10 million.
“The convergence of factors including changing consumer behavior, economic softening and federal regulatory changes has opened the door to the rapid expansion of THC beverages in the United States,” said Beau Whitney, author of the report.
“The advent of THC beverage products provides a solution that can help backfill revenue declines in multiple industries, including beer, wine and distilled liquor.”
Report says
Other findings include:
- There are up to 750 brands in space nationwide, with about 200 of which sell products in cannabis stores.
- The potential market is worth between $9.9 billion and $14.9 billion, which means significant potential for expansion.
- The lack of a federal regulatory framework means state regulators are working to develop policies on how to protect consumers while allowing market growth.
At the time of reporting, the drinks were:
- Legal in 28 states.
- Legal but restricted in nine other states.
- Only available in cannabis stores in seven states.
- Totally illegal in six states.
Many cannabis multilayer operators have added cannabis-derived THC products, such as beverages, to their product lines.
Major mainstream retailers such as Total Wine & Spirits have proven eager to carry THC drinks.
Drink sales account for only 1% of the national cannabis market, the report said.
“The cannabis beverage market is gaining serious appeal, but we are still in the early stages,” said Art Massolo, vice president of business development at Cycling Frog, which is the THC beverage brand and one of the sponsors of the report.
“Thc drinks are helping shape a new type of drinking culture – a rooted in control, health and enjoyment.”
