Cannabis become a serious rival of beer

The floor shifts under the beer industry – and marijuana is one reason

The beer is the third most popular drink worldwide behind water and tea. But in the United States, Cannabis becomes a serious rival for beer? According to the latest investigations by Investment Bank TD Cowen, sales with US Cannabis achieved 29 billion US dollars in 2023, compared to around 10 billion US dollars five years ago. This number now corresponds to about 11 percent of the total US alcohol market, compared to only 4 percent in 2018. The sales of cannabis are expected to achieve 37 billion US dollars by 2027, which is due to increased legalization and the change in social attitudes.

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TD COWEN, which covers alcohol and cannabis as part of their portfolio, predicts the number of monthly cannabi users by 18 million in the next five years, while alcohol will probably lose around 2 million regular consumers. They also forecast the number of monthly cannabial users in the next five years by 18 million, while alcohol will probably lose around 2 million regular consumers.

Independent reporting from the Financial Times supports this trend. In states in which cannabis is legal, two thirds of cannabi consumers stated that they drink less alcohol, with beer affected the most affected category. A similar trend was observed in Canada, where the per capita turnover of beer after national legalization decreased by more than 2 percent annually.

Some analysts in the alcohol industry grant the alarm. A forbes article at the beginning of this month combined the underperformance of alcohol stocks with the growing health-conscious behavior and increased cannabis consumption, especially in younger adults who are looking for alternatives to traditional drinking.

Despite the shift in expenses, beer remains a staple food for many consumers. A current analysis by YouGov and Google Trends shows that Miller is the most popular beer in 30 states, including the middle west and southeast. Coors leads in eight states, including California, Texas and Arizona, while Guinness searched the most in New Jersey, Georgia and South Carolina. In addition, Budweiser, Bud Light, Blue Moon and Corona are still to maintain strong sales, although everyone has a smaller share of popularity at state level.

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This developing consumer landscape indicates a long-term new balance of alcohol and cannabis markets. Much of the shift is powered by younger millennials and gen z, which increasingly prioritize wellness, moderation and cannabis as a social alternative to alcohol. Industry observers say that beer companies may have to adapt-entertainment by diversification in drinks enriched by cannabis or rethinking how they market themselves to health-conscious consumers.

When more states move towards legalization and postponement of the public mood, the once clear boundaries between cannabis and the alcohol industry begin to blur. Regardless of whether beer can keep its soil or cannabis, it remains to be seen, but the competition is clearly underway.