CANNABIS drinks are the latest “trend” in cannabis consumption methods. But are cannabis drinks simply a trend? Research says no. In 2023, the global cannabis beverage market size was valued at $1.16 billion. From 2024, the market is projected to grow at a CAGR of 19.2% to reach $3.8 billion by 2030.

So what’s driving the rise in consumption of cannabis-infused beverages? Today’s consumers are gradually becoming more health conscious and wary of the materials they put into their bodies. For example, only 62 percent of adults under 35 consume alcohol. That number is down from 72 percent just two decades ago.

In fact, cannabis use as a whole is on the rise. A study from 2022 found that 17.7 million people reported daily or near-daily marijuana use. Meanwhile, 14.7 million people reported drinking with the same frequency.

The balance seems to be tipping towards cannabis use and away from alcohol. And yes, Big Alcohol feels threatened. A recent one Article Marijuana Moment claims Big Alcohol faces declining wine and spirits sales — in 2023 alone, total U.S. liquor decreased by 3 percent.

Why? This decline is partly due to consumers choosing to live an alcohol-free lifestyle (45 percent of millennials now requires alcohol-free products) and increased consumer access to legal cannabis, including cannabis-infused beverages.

So it’s no surprise that Big Alcohol is looking to enter the cannabis beverage market. For example, The Boston Beer Company, which owns the Samuel Adams Boston Lager, Twisted Tea, Truly hard seltzer and Angry Orchard brands, has already entered the cannabis beverage market. In 2022, The Boston Beer Company introduced its TeaPot Cannabis Infused Iced Teas in Canada.

As cannabis legalization becomes more widespread in the US, we can only expect to see additional Big Alcohol companies move through the cannabis beverage market to diversify their revenue and offset lost profits from declining alcohol sales.

The real question is: Is Big Alcohol’s push into cannabis beverages a sign of progress or a potential problem?

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Here’s what we know: Drinking hard alcohol in the corner of cannabis-infused drinks can help normalize cannabis use. It can also offer cannabis beverages to a wider audience and better distribution channels. Even Total Wine & More, an American alcohol retailer is partnership with cannabis brands to sell infused seltzer. Big Alcohol’s involvement could also force clearer and safer regulation of cannabis products.

All of the above would be great, of course. But what would happen to the smaller cannabis brands that have steadily made a name for themselves in the industry? Would Big Alcohol buy them out and take control of the cannabis beverage industry? Would the alcohol tycoons crowd out these smaller cannabis brands and lose business, intentionally or unintentionally?

Other concerns include Big Alcohol prioritizing profit over quality, and if they begin to dominate the cannabis beverage space, infused beverages may become diluted and even less effective. Not to mention the additives that Big Alcohol adds to wine, beer and other spirits are far from healthy. In fact, alcoholic beverages are known to “contain a variety of carcinogenic contaminants which are introduced during fermentation and production, such as nitrosamines, asbestos fibres, phenols and hydrocarbons.”

Is this the future we want for cannabis users?

These are the concerns many cannabis business leaders are voicing today. Monica Olano, founder and CEO of Cali Sober Mom and cannabis reform advocate, was quoted in the Cannabis Regulator article, “Cannabis businesses sell for high alcohol,” stating, “Studies have shown that alcohol brands use additives in their products that are linked to cancer. Are we going to let the hemp and cannabis industry sell out to (Big Alcohol) and potentially contaminate our wellness product with harmful additives? This would erase a lot of the hard work the industry has put in to create safer, healthier alternatives to alcohol with a focus on wellbeing.”

So what’s the answer to the question: Is Big Alcohol’s push into cannabis beverages more of a breakthrough or a problem?

Here’s the deal. Big Alcohol’s role in the cannabis beverage market will bring both opportunities and challenges. What consumers should look out for when purchasing cannabis-infused beverages are the ingredients, especially as more alcohol leaders enter the cannabis industry. If you want to treat yourself to a cannabis seltzer for health benefits, make sure there are no harmful additives in your drink of choice.

As leaders in the cannabis business, it is important to voice your concerns but also be open to the possibility of Big Alcohol entering the cannabis market. Look for ways to collaborate rather than dominate or be dominated.

In the coming years, I expect to see Big Alcohol brands partnering with small and mid-sized cannabis companies to create cannabis products at scale. The best case scenario is that these industries come together to take consumer demand and health concerns at face value.