Cannabis beverage sales boom in January as Americans drink less، threatens alcohol industry
Cannabis beverage sales، the no- and low alcohol drinks market، are booming in January as Americans drink less، so that the weed sales Boom threatens alcohol industry and it's expected to grow by 25% between now and 2026، according to data from drinks market which shows about a third of Americans under the age of 25 doing the start of this year detox use the drug and see marijuana as a healthier alternative of alcohol drinks.
Rising Cannabis sales in January
Cannabis sales rise in January as detoxing drinkers swap drugs and more Americans، especially younger ones، perceive the weed as healthier drinks threatening alcohol industry that nncreasing popular alcohol breaks like Dry January are buoying the emerging US cannabis market.
Legal Cannabis edibles usually contain 10 milligrams of THC per serving، with inexperienced consumers typically advised to start with a smaller amount، that means Cann isn’t aimed at stoners who want to get as high as possible and Web searches for Dry January reached an all time high in the first week of the year، doubling from more than a year ago.
Widening legalization of Cannabis in the USA
Cannabis sellers، emboldened by widening legalization in the USA، now actively market to January abstainers with new products and targeted advertisement، while research shows more than 33% of Americans under the age of 25 doing the start of year detox use the drug and weed sales also grow more in January in some legalized states than other months.
Data from Bloomberg Second Measure، which tracked a subset of US credit and debit card transactions for LiquorBarn Co.، Total Wine & More and BevMo! Inc.، found that alcohol sales fall in January as observed sales hit a post pandemic low this month at three of the largest US liquor chains، and tend to drop in places that legalize Cannabis which grows more.
A lot of people are now upping their Cannabis purchases
Matt Darin، chief executive officer of Curaleaf Holdings Inc.، the most valuable publicly listed marijuana company، affirmed that a lot of people coming into its dispensaries that are saying they are not drinking for January and therefore they’re now upping their Cannabis purchases.
Matt Darin revealed that interest in Cannabis has grown yearly since 2016 alongside a growing aversion to alcohol among younger Americans and about half of 18- to 25-year-olds responding to a national survey said they drank in the past month، down from 60% in 2015.
Legal Cannabis edibles boom this year
Legal Cannabis edibles boom this year makes proponents of drinking breaks claim health benefits ranging from better sleep and clearer skin to improved heart and liver function that it may spell tough times ahead for the liquor industry، especially as more US states look to legalize recreational Cannabis as currently 24 states and Washington D.C. allow it، and at least Florida and Hawaii could see votes this year.
Blair MacNeil، Tilray Brands Inc.’s president of Canadian operations assured that there’s a lot of Cannabis consumers who needed the government to tell them it was OK to use Cannabis after it has a hundred years of stigma.
Revenues at Curaleaf to grow 6% on average in the first quarter this year in USA
Revenues at Curaleaf، Green Thumb Industries Inc.، Verano Holdings Corp.، Tilray and Canopy Growth Corp. are set to grow about 6% on average in the first quarter this year in USA but at the state level، Oregon’s Cannabis sales have jumped 19% on average in January since 2018 versus 12% on average in other months and in Colorado، weed sales grow the fastest in January on average، while، beer volumes have fallen about 2.6% annually since Canada legalized recreational use of Cannabis in 2018.
Vivien Azer، TD Cowen’s former managing director of cannabis، indicated that i n North America، beer sales are expected to have fallen in the last quarter of 2023 for the first time since the pandemic forced bars and restaurants to close with the drop of 1.7% across Molson Coors Beverage Co.، Constellation Brands Inc.’s beer segment، Boston Beer Company and Anheuser-Busch Inbev SA’s North America business would cut about $150 million in revenue.
Federal legalization of Cannabis remains elusive in USA
However، USA alcohol sales aren’t likely to face the same pressure as Canada’s anytime soon as federal legalization of Cannabis remains elusive as the drug is currently on par with heroin in US law، though health officials have recommended loosening its restrictions، which some see as a meaningful step toward national legalization.
That reclassification could come as soon as April if Democrats seek to appeal to younger pro Cannabis voters ahead of the 2024 presidential election، although Cannabis has a hundred years of stigma that is now crumbling as edible products whose sales spike in January are seen by the industry as a the best way to tackle that stigma.
Growing perception of Cannabis as less harmful than alcohol
The growing perception of cannabis as less harmful than alcohol among younger generations stems in part from marijuana’s more than 30-year-old medical usage in the US to treat disorders including chronic pain، anxiety and anorexia، while Issues with addiction and mental disorders like psychosis remain، especially from overuse of high potency products and it is the one category where there is the greatest overlap between folks who are moving away from alcohol or supplanting Cannabis use for alcohol consumption.
Some people wary of those risks، or just wanting a drug-free January، non-alcoholic spirits are also growing in popularity as it is kind of like the World Cup for tham as it is expected every January to be the biggest month ever and that’s what is the case this year as well.
