According to a report on the THC beverage industry in the USA, while the market is still young, beverages infused with cannabinoids are already making traction.
THC (tetrahydrocannabinol) is an intoxicating cannabinoid that is increasingly appearing in beverages such as teas and sodas. Whitney Economics states that THC-containing beverages are legal in the majority US states. Seven states have completely banned them.
A confluence factors including changing consumer behaviour, economic softening, and changes in federal regulations combined to allow for a rapid growth of THC drinks across the United States. says Beau Whitney is the Chief Economist of Whitney Economics.
The 2018 Farm Bill was one of the changes that led to the decoupling between hemp and marijuana. By using hemp-derived THCA, products can be sold to consumers directly with less regulatory oversight.
What is the current market value?
Whitney estimates that the US THC beverages market has a value between $1 billion and $1.3billion. The total market potential is $9,9 billion to $14.9 billion. This leaves plenty of room for future growth. Whitney anticipates that growth will “expand in a very rapid manner” over the next few years.
There’s no shortage of players trying to crack the market, with 500 – 750 brands in this space nationally. The average sales are $2 million per year. However, some brands are selling more than $10 million.
Only 20 of the beverage companies are at economies-of-scale, but production costs still remain high when compared with other industries. THC beverage manufacturing is a complex process that involves a long supply chain, and multiple testing stages. This testing goes beyond the testing of conventional marijuana products.
Whitney, who is optimistic about the future of the industry, says that the federal and state policy landscape will settle in the coming years.
In light of the economic activities, the regulators prefer to find ways to encourage the market rather than prohibit it. It will eventually lead to more favorable policies rather than bans. This will take some time. “Operators will have to be prepared for this dynamic.”
The U.S. THC Beverage report (2025) is full of fascinating facts and figures. can be downloaded here.
Whitney Economics, founded in 2014, provides data, analyses and thought leadership about the U.S. hemp and marijuana industries. Beau Whitney founded Whitney Economics in 2014. He is the current Chief Economist of the National Industrial Hemp Council, and National Cannabis Industry Association.