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Topic: CPG Market Research Market Research Trends Beverage Brand Strategy

The THC Beverage Revolution: What Retailers Need to Know This Quarter

by Amy Basile
Jul 2, 2025 5:35:30 PM

Bottom Line Up Front

THC beverages are experiencing explosive growth, with some retailers reporting these products now comprise over 10% of total revenue—outselling traditional spirits categories like bourbon and vodka. 1

 

The Outlook 

THC beverages represent more than a trend—they're reshaping the broader beverage alcohol landscape. As one industry expert noted, there's "no question" these products are disrupting traditional alcohol sales. 8

For retailers willing to embrace this category, the opportunity to capture new consumers and drive incremental revenue has never been stronger. 

 

Market Momentum Accelerates 

The numbers tell a compelling story. Cannabis beverages generated $54.6 million in Q1 2025, marking a robust 15% year-over-year increase. 2

More striking is the hemp-derived segment, which reached $382 million in 2024 sales and is projected to nearly double to $750 million by 2029. 1

This isn't just a niche trend—it's disrupting the category. One Minnesota liquor chain reported THC beverages growing from zero to 15% of total sales in just two years, with the owner noting, "We've never seen anything explosive like this." 3

pexels-elsa-olofsson-3357043-5331316

 

The Surprising Consumer Profile 

Forget the stereotypical cannabis consumer. The data reveals THC beverage buyers are primarily: 

  • Parents of young children (ages 3-5), who show the highest level of interest in trying a THC beverage among consumers with kids. 4
  • Women aged 21-34, who lead overall consumption patterns. 4
  • Stressed professionals, who seek alcohol alternatives for relaxation. 4 

This demographic shift explains why THC beverages are thriving in mainstream retail rather than traditional dispensaries. 

pexels-shvetsa-4586634

 

The "California Sober" Effect

THC beverages are riding the wave of America's changing relationship with alcohol. With 25% of adults participating in Dry January 2024 (up from 16% in 2023), consumers are actively seeking sophisticated alternatives that provide relaxation without the hangover. 5 

The appeal is clear: these beverages offer a controlled, predictable experience with lower doses (2.5-5mg THC preferred by most consumers ²) that allow for social consumption without impairment. 

pexels-charlotte-may-5947009

 

Innovation Driving Growth 

Flavor Evolution

Classic flavors have their place, but tropical blends (mango, pineapple, passionfruit) and botanical infusions (lavender, chamomile, herbs) capture consumer interest with more sophisticated taste profiles. 6 

Functional Benefits

The newest products combine THC with minor cannabinoids like CBN for sleep or CBG for focus, positioning these beverages as wellness products rather than just recreational drinks. 6

Format Diversity

Sparkling waters lead the category, followed by ready-to-drink mocktails and functional wellness shots. 6

pexels-jdgromov-5668205

 

Geographic Hotspots 

While mature markets like Colorado and Arizona show declining sales, emerging markets are exploding: 

  • Michigan: +112% growth 2
  • Ohio: +79% increase 2
  • Illinois: +47% rise 2

Retail Integration Success 

Major chains are embracing the category. Total Wine & More, Spec's Wine Spirits & Finer Foods, and ABC Fine Wine & Spirits now stock hemp-derived THC beverages alongside traditional alcohol. 5  

Brands like Melo Seltzer, available at Total Wine, have become go-to's for new consumers seeking alcohol alternatives with flavor-first profiles and consistent effects.

The key insight: these products are more commonly found in liquor stores than dispensaries due to simpler logistics and broader consumer appeal. 5 

pexels-roman-odintsov-4869320

 

Top THC Beverage Brands to Watch in Q3

  • Sunny Dayz:  Low-dose sparkling seltzers infused with THC and designed for a relaxed buzz, with quick onset and easy taper.

  • Melo Seltzer: Fruit-forward and THC-infused, these crisp drinks are a favorite for replacing alcohol without losing the fun.

  • High Rise: Real-fruit sparkling waters made with THC, CBD, and a clean-label ingredient list—ideal for the wellness crowd.

  • Nowadays:  Fast-acting, microdosed THC beverages built for social settings where you want to feel something without going overboard.

  • Wynk: Balanced with both THC and CBD, these sugar-free seltzers deliver a subtle onset, mellow effects, and smooth, sustained social energy.

 

Strategic Considerations for Q3 

  • Inventory Planning: Focus on low-dose options (under 10mg THC), sparkling formats, and tropical/botanical flavors. 6
  • Customer Education: Clear labeling and dosage guidance are essential for building consumer confidence.
  • Placement Strategy: Position near non-alcoholic alternatives rather than with traditional cannabis products to capture the sober-curious demographic.
  • Regulatory Awareness: State regulations vary significantly. Stay informed about local compliance requirements as this category continues to evolve. 7

 

Ready to capitalize on the THC beverage opportunity?

MDRG provides the strategic market intelligence and consumer insights you need to navigate this rapidly evolving category.

Contact us today to discuss how our research expertise can accelerate your success in the THC beverage market.

 

References

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Topics from this blog: CPG Market Research Market Research Trends Beverage Brand Strategy

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