[PRESS RELEASE] – PORTLAND, Ore., Sept. 3, 2025 – Whitney Economics (WE), an international leader in cannabis business consulting, economic data and research on hemp, released a report that examined the THC beverage market from a government perspective. It also addressed demand estimates and estimated legal sales for each state.
Beau Whitney, Chief Economist at WE, said that a confluence factors including changing consumer behaviour, economic softening, and changes in federal regulations, have combined to allow for a rapid growth of THC drinks across the United States. The emergence of THC beverages has helped backfill falling revenues in multiple industries including beer, wine, and distilled spirit.
The report’s summary indicates that:
- According to conservative estimates, the total market potential is between $9.9 and $14.49 billion.
- There is still a lot of upside in the U.S. market. Legal sales were between $1.3 and $1 billion.
- There are roughly 500 – 750 brands in this space nationally, roughly 200 of which are selling via marijuana dispensaries
- Top brands easily surpass $10 million in sales per year.
- THC drinks are currently legal in 28 States, are restricted to marijuana shops in nine others, are only available in seven states and completely banned in six.
- In the absence of federal regulation, states are struggling to develop policies that will protect the consumer while also allowing growth.
- THC beverages are produced using a long supply chain, and they require testing throughout the production process. Cannabis testing is much more complex than the traditional method.
- THC drink growth is expected to continue for at least the next decade. But the immediate forecast depends on changes in state and federal policy.
Art Massolo (Vice President of Business Development at Cycling Frog, one of the sponsors of the report) said, “The cannabis drink market is growing rapidly, but it’s still early days.” “With consumer demand rising and alcohol moderation trends accelerating, THC beverages are helping shape a new kind of drinking culture—one rooted in control, wellness, and enjoyment. The report sheds important light on the future of cannabis.
When THC-containing beverages were sold initially through cannabis dispensaries regulated by state law, they were seen as a niche product. THC-containing beverages accounted for less than 1% of all U.S. cannabis sales. However, they were not considered a serious industry until federal changes, through the 2018 Farm Bill allowed the widespread use of THC drinks in the U.S. In the United States, decoupling hemp from marijuana allowed for ingredients from hemp to be processed and then sold directly to customers with much less regulatory oversight.
The THC beverage market expanded rapidly through multiple channels. This included traditional marijuana retail outlets, direct-to business sales, traditional liquor distributors and online sales direct to consumers. It led to a sales increase of over $1 billion dollars in 2024, and it is expected to grow exponentially within the next few years.
Visit this link for more details on the report. whitneyeconomics.com.