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| Getty images; Tyler Le |
A few years ago, cannabis-infused beverages were being touted as the next big thing in both the beverage and cannabis industries. Industry insiders envisioned them taking a significant bite out of the alcohol market, showing up in coolers across America, and redefining social drinking culture. But for all the promise and excitement, the reality so far has been far less bubbly. Sales are growing, but adoption remains niche, regulations are inconsistent, and no one is quite sure who the ideal consumer really is.
For entrepreneurs like Mark Thomas Lynn, founder of Afterdream and head of premium spirits and beverage company AMASS Brands Group, the journey has been a roller coaster. The company first launched its THC-infused drink in 2021, only to pull it from shelves nine months later due to a tangled web of legal restrictions on where and how it could be sold. “Even though people were going crazy over the product, we were like, ‘Oh my God, this is just too byzantine,’” Lynn recalls. The rules simply hadn’t caught up with the concept.
Afterdream returned to the market in May this year, with AMASS hoping the second round will fare better. While the regulatory landscape is still far from perfect, Lynn believes consumer curiosity has grown — especially for low-dose, non-alcoholic, and social drinking alternatives. “If I have a delicious drink that doesn’t floor me, do I reach for that instead of a glass of wine?” he asks.
A Market That’s Growing — But Still Tiny
THC beverages aren’t just a dream anymore; they’re a real, if modest, category. Research from the Brightfield Group suggests hemp-derived THC drinks will generate $571 million in sales this year, with projected growth to $756 million by 2029 — a solid 33% increase. But even that would leave the market microscopic compared to mainstream alcohol: the U.S. beer industry alone generated $117 billion last year, with Modelo expected to pull in $5 billion by itself in 2024.
“There was a lot of hype behind drinks but not necessarily a lot of consumer adoption,” says Zehner, an analyst at Brightfield Group. While companies and investors keep predicting mass adoption, the truth is, the product’s core audience remains hard to pin down. Alcohol drinkers aren’t always willing to swap their wine or beer for cannabis, cannabis enthusiasts often want higher potency than these drinks deliver, and some consumers still carry bad memories of unpleasant edible experiences.
Taste, historically another barrier, is improving thanks to better formulations. But that alone isn’t enough to overcome the structural and cultural hurdles keeping THC drinks from becoming a household staple.
The Legal Maze
To understand why cannabis beverages have such an uphill climb, you need to look at the 2018 Farm Bill, which legalized hemp (cannabis with less than 0.3% THC) at the federal level. This created a legal loophole that allowed companies to make and sell hemp-derived THC products — in some interpretations, completely legally; in others, in a gray area.
But state laws are the real minefield. Rules vary wildly:
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Minnesota has embraced THC drinks, allowing sales in liquor stores, bars, and restaurants.
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Texas and Florida have been strong markets but face ongoing legal battles.
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California and Colorado, despite having legal marijuana markets, have cracked down on hemp-derived THC to protect licensed cannabis businesses from competition.
“If a state has a legal cannabis market, it probably has limited the sales of hemp-derived THC significantly, if not outright banned it,” Zehner explains.
The uncertainty is constant. In 2024 alone, Kentucky lawmakers clashed over closing the hemp loophole, Texas’s governor vetoed a ban on THC drinks, and Florida updated its serving size rules — forcing brands like Keef Brands to reprint labels and adjust formulations overnight. “They keep moving the goalposts,” says Keef’s CRO, Blake Patterson.
Cultural Barriers and Consumer Awareness
Legal issues aside, THC drinks face a fundamental branding challenge: most people don’t even know they exist. “If you ask people if beer exists, they say yes. If you ask if wine exists, they say yes. But if you ask when they last had a THC beverage, consumer awareness is really low,” says Scott Selix, cofounder of Climbing Kites, a cannabis beverage startup.
Selix points out that “big cannabis” consumers — much like heavy liquor drinkers — often want higher doses than these beverages provide. Most THC drinks range from 2 mg to 10 mg per can. For newcomers, that’s enough for a light buzz, but for seasoned users, it may barely register. This “beer-versus-liquor” dynamic makes them tricky to market.
Dispensaries haven’t been great outlets for the category, either. Drinks are bulky, require refrigeration, and represent only about 1–1.5% of dispensary sales. “Beverages are difficult to carry for a dispensary where the rest of their inventory is something that’s smaller, easier to move,” says Elisabeth Stahura of BDSA.
Winning Over the Canna-Skeptics
One promising frontier is appealing to consumers who are cannabis-curious but hesitant — the so-called “reclusive soccer mom” demographic. These are people who might never set foot in a dispensary but could pick up a THC drink from a liquor store or convenience shop.
Brands like Brēz are leaning into this opportunity by positioning their products as an antidote to bad edible experiences. Founder Aaron Nosbisch says they’ve refined their formulations to work faster and fade faster, mimicking alcohol’s onset and duration. This gives consumers more control — and helps reduce the anxiety of not knowing how long the high will last.
Still, THC drinks aren’t one-size-fits-all. “We have to educate people on when and where these drinks make sense,” Selix says. “It’s not always about replacing alcohol entirely — it’s about offering another choice.”
Signs of Hope in Certain Markets
Where THC drinks are legal and easy to buy, they can thrive. In Minnesota, liquor store profits have surged thanks to THC sales. Brēz reported $1.25 million in sales in its first year (2023) and nearly $29 million in 2024. Big players, including Total Wine and DoorDash, are now selling or delivering these beverages.
The alcohol industry is watching closely — and nervously. Some alcohol companies are even testing their own cannabis drink lines. “The hemp space has shown that this category can be successful if it’s properly marketed,” Patterson says.
THC drinks still promise a unique value: a buzz without the hangover, fewer calories than beer, and a perception of being “healthier” than alcohol. But despite improving taste and growing distribution, widespread adoption remains an uphill climb. The regulatory environment is more favorable than it was a few years ago, yet unpredictable enough to keep brands on edge.
For now, the cannabis beverage industry is stuck in a wait-and-see mode — and so are consumers. You might toss a four-pack of THC seltzers into the cooler for your next barbecue, just to see if anyone bites. But you might also find them untouched at the end of the night — even if there was a joint making the rounds.
