About three in four young adults say they’re substituting cannabis for alcohol at least once per week—a “fast-emerging” trend that reflects the “rapid expansion” of the hemp product marketplace—according to a new survey and analysis.
The report from Bloomberg Intelligence (BI) found that, across various demographics, cannabis is increasingly being used as an alternative to alcohol and even non-alcoholic beverages as more companies—including major multi-state marijuana operators (MSOs)—expand their offerings.
BI warned that participation in hemp markets could be fraught with financial risks, as “lawmakers might act to prevent hemp-derived THC product.”
According to the report published on Monday, it is possible that soda producers will have a harder time later establishing top-brands if they do not participate.
The market has been driven by the two emerging trends of increasing marijuana substitution for alcohol, and consumers’ preference to consume cannabis rather than smoking it. Trulieve and Curaleaf are large US multistate companies that have just launched hemp based THC beverages. “Unlike state-legal THC beverages, hemp-based THC is available at mainstream liquor shops.
A chart published by BI shows that 74 percent (of those 18-24) self-report cannabis use “instead” of alcohol at least once a week. This compares to 65 percent for those aged 25-34 and 42 percent for those aged 45-54.
Two fast-emerging market trends are driving the cannabis industry: increasing substitution of alcohol for marijuana and an increase in preference by users to consume their cannabis rather than smoking it. @BBGIntelligence https://t.co/9yURmgtYkx
— Todd Harrison (@todd_harrison) March 17, 2025
That is largely consist with a growing body of studies indicating that cannabis—whether federally legal hemp or still-prohibited marijuana—is being utilized as a substitute for many Americans amid the reform movement.
YouGov released a study last week that found a majority believe that alcohol use is harmful. In spite of the risks, more people say that they prefer alcohol consumption to cannabis.
In a separate survey conducted in January, it was found that over half of cannabis users said they drank less or no alcohol after using marijuana.
Yet another survey—which was supported by the National Institute on Drug Abuse (NIDA) and released in December—found that young adults are nearly three times more likely to use marijuana than alcohol on a daily or near-daily basis.
That poll provided more granular, age-specific findings than a similar report published last year, finding that more Americans overall smoke marijuana on a daily basis than drink alcohol every day—and that alcohol drinkers are more likely to say they would benefit from limiting their use than cannabis consumers are.
A separate study published in the journal Addiction last year similarly found that there are more U.S. adults who use marijuana daily than who drink alcohol every day.
In December, BI also published the results of a survey indicating that substitution of cannabis for alcohol is “soaring” as the state-level legalization movement expands and relative perceptions of harm shift. This poll also revealed that a large portion of Americans substitute marijuana and painkillers for tobacco.
Another BI analysis from last September projected that the expansion of the marijuana legalization movement will continue to post a “significant threat” to the alcohol industry, citing survey data that suggests more people are using cannabis as a substitute for alcoholic beverages such a beer and wine.
Yet another study on the impact of marijuana consumption on people’s use of other drugs that was released in December suggested that, for many, cannabis may act as a less-dangerous substitute, allowing people to reduce their intake of substances such as alcohol, methamphetamine and opioids like morphine.
A study out of Canada, where marijuana is federally legal, found that legalization was “associated with a decline in beer sales,” suggesting a substitution effect.
These analyses are in line with recent data from other surveys that looked more widely at American attitudes towards marijuana and alcohol. For example, a Gallup survey found that respondents view cannabis as less harmful than alcohol, tobacco and nicotine vapes—and more adults now smoke cannabis than smoke cigarettes.
A separate survey released by the American Psychiatric Association (APA) and Morning Consult last June also found that Americans consider marijuana to be significantly less dangerous than cigarettes, alcohol and opioids—and they say cannabis is less addictive than each of those substances, as well as technology.
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