In a market estimated at multi-billion dollars, the intoxicating hemp industry continues to grow alongside marijuana. More companies are recognizing the potential of this niche. In the massive market for hemp-derived THC, beverage sales are on the rise.
During a Tuesday webinar hosted by BDSA and co-founded by Liz Stahura (chief operating officer, BDSA), she said: “There is a great deal of excitement, interest, momentum” in the category of hemp-based THC infused beverages. Green Market Report.
Stahura, a hemp drink manufacturer in the United States estimated that a market of $1.4 billion up to $4 Billion could be created over the course of the next four-year period.
Stahura pointed out that BDSA has estimated the marijuana legal market to grow from $31.2 billion last year in Canada, to $44 Billion by 2028.
Stahura added that even in marijuana dispensaries regulated by the state, Stahura predicted beverage sales would double around 2028. It doesn’t account for hemp drink sales in mainstream retail stores such as Texas, North Carolina and North Carolina. Or direct to consumer hemp beverage sales on the internet.
Mack Hueber of the hemp brand Ayrloom in New York said that these sales channels are growing as well.
There are many beverage brands that still sell directly to consumers. Hueber noted that “there are many ways to get people to try THC drinks.” He added that hemp-based companies can benefit from exposing consumers to THC in areas that do not yet allow marijuana sales.
Hueber also noted that hemp beverage producers face a number of challenges, such as potency limits which vary by state. Hueber noted that his company must produce at least three SKUs of each flavor they sell in New York, New Jersey, and Connecticut because every state sets a different cap on THC.
Hueber, who lives in New York state, said that the maximum amount of THC he can sell per 12-ounce container is 1 milligram. Connecticut allows three milligrams. In New Jersey the limit has not yet been set but regulators are leaning toward 10 milligrams.
Hueber stated that “alcohol is very different from marijuana.”
Hueber is also concerned about the constantly changing state laws, especially given that hemp is a relatively new product and many states have already begun to ban it. This has led to some major retailers, such as Total Wine, hesitant to stock hemp-infused drinks.
Hueber added, “There are still many who hesitate to use this term until concrete legislation and regulations have been established.”
But what Hueber’s company has found – particularly with its experience in the alcohol industry through its parent company, Beak and Skiff, which has a hard cider available in 24 states – is there’s success to be found in swapping in hemp drinks for alcohol, particularly with the help of alcohol distributors that Hueber already does business with.
Hueber quipped, “Liquid in the lips is winning.” “It’s straight from the alcohol playbook.”