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- The Inflection Point for Beverage - Herbal Profiles #110
The Inflection Point for Beverage - Herbal Profiles #110
Non-alc drinks pass $1B while hemp-derived beverages surge past $3.8B. Here’s why both are driven by the same consumer mindset.


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Welcome Note
Welcome Back Gardeners to the 110th edition of Herbal Profiles!
Happy Friday yall! Will anyone be in Miami today and tomorrow for iii Points? I will be heading down to shoot some photography with Cann! So if you’re there give me a shout!
Let’s get into it.
-Lars
The subreddit I moderate with Chris Fontes is about to hit 1,400 subscribers! And my other subreddit for the broader CPG industry is also growing, hitting 100 subscribers. I would love to have you join us on either or both subreddits!
The Free Spirits Podcast with David Gonzalez and myself just dropped episode 16 of season 2 with Kevin Provost, CEO, MoreBetter Ltd.
If you could take the time to drop a review of the podcast or even just share it with a friend or two, it really does help us grow and continue to bring you this show.
Any comments or questions? Leave comment on this post or shoot me an email. Would love to hear from you!
News Roundup
Target begins selling THC drinks in some Minnesota locations - Target confirmed a pilot program offering THC beverages in several Minnesota stores, featuring local brands compliant with state regulations. Company representatives said the launch aims to test consumer response before wider rollout.
Ohio moves to ban intoxicating hemp products, including THC drinks - Ohio lawmakers introduced a measure to ban hemp-derived THC products, citing concerns over unregulated intoxicating beverages. The proposal follows recent enforcement orders and could impact hundreds of small retailers across the state.
Boulevard Brewing debuts Quirk THC Seltzer, “Berry Jane” - Kansas City–based Boulevard Brewing announced its first THC beverage under the Quirk brand, a hemp-derived seltzer called “Berry Jane.” The launch marks the brewery’s entry into the THC category, expanding its non-alcoholic and functional drink lineup.
Cannabis drinks are having a moment even as Americans consume less alcohol - A new CBS News report highlights growing consumer demand for THC beverages as alcohol consumption hits its lowest level since 1939, according to Gallup. Whitney Economics projects U.S. THC beverage sales to rise from $1.1 billion in 2024 to nearly $5.6 billion by 2035, with brands like Cann, Cycling Frog, and Nowadays leading the category.
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The $1B Club: How Non-Alc and THC Drinks Hit Their Stride at the Same Time
A few weeks ago, I wrote that THC drinks aren’t replacing alcohol — they’re expanding the fridge.
According to new data from NIQ and Brightfield Group, non-alcoholic beer, wine, and spirits are now a $925 million market, on track to surpass $1 billion in off-premise sales by year’s end. Meanwhile, the U.S. hemp-derived THC market, barely a blip in 2020, has grown to $3.8 billion, with drinks becoming one of its fastest-moving formats.
This has been a long time coming frankly. With the huge surge in alcohol drinking during the pandemic and Dry January becoming more of a thing every year since then, it was only a matter of time. Every industry has inflection points and for these industires I believe 2025 marks something bigger, a convergence of two parallel industries meeting at the same cultural moment.
Both non-alc and THC beverages are built on the same consumer promise: social enjoyment.
The Parallel Rise
Non-alcoholic beverages have been posting double-digit growth since 2021, while traditional alcohol categories, especially beer and wine, have seen slight declines. NIQ’s 2025 data shows the non-alc segment growing +22% year over year, driven by premium product design, better flavor profiles, and a new generation of drinkers comfortable mixing NA options into their social lives.
At the same time, Brightfield Group projects the hemp-derived THC market to expand another 16% year over year, led by beverages, gummies, and vapes. THC drinks now account for a meaningful portion of the category’s $3.8 billion total, up from just $200 million five years ago.
Both growth stories trace back to the same three macro drivers:
Wellness as a lifestyle choice.
Consumers aren’t trying to quit; they’re trying to control. The success of low-dose THC beverages mirrors the rise of non-alc beer and functional seltzers that promise balance over buzz.
Premiumization through purpose.
Consumers will pay more for brands that help them feel intentional, not indulgent. In both categories, design and narrative matter as much as dosage.
Moderation as identity.
What used to be called “sober curious” is now a mainstream mindset. The social drinker is defined by optionality.
Behind both movements is the same person the Flex Drinker we discussed last weeks. They’re not sober. They’re selective. They buy wine, weed, and water.
Brightfield’s research shows that 47% of THC beverage users have reduced their alcohol intake, but not eliminated it. In fact, they over-index as alcohol drinkers compared to the general population. Meanwhile, NIQ found that 92% of non-alc buyers still purchase alcohol regularly.
And demographically, the profile is nearly identical across both categories:
Young to mid-career adults (Millennials and older Gen Z)
Urban or suburban
Higher income
Educated
Health-conscious but not abstinent
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The Distribution Loophole
One reason both categories hit scale in 2025 is that they found ways around the gatekeepers.
The result? Online non-alc sales jumped +208% year over year, according to NIQ, as brands like Hiyo, De Soi, and Ghia mastered digital marketing and fulfillment.
THC beverages took a different path. Their “loophole” wasn’t digital (though that is allowed and a big portion of sales too) it was legal. The 2018 Farm Bill legalized hemp-derived cannabinoids containing no more than 0.3% Delta-9 THC by dry weight. That gap allowed brands to develop fully intoxicating products under federal legality, sold through convenience stores, liquor stores, and e-commerce platforms that were previously off-limits to cannabis.
By early 2025, Brightfield reported that liquor store and on-premise purchases of THC drinks had doubled year over year, as states like Texas and Minnesota normalized retail distribution.
The net effect: both non-alc and THC drinks became accessible where alcohol lives.
Legacy beverage players now face three strategic choices:
Ignore it. Continue to treat non-alc and THC as peripheral trends. (Spoiler: this ends badly.)
Buy in. Invest in or acquire smaller brands to diversify portfolios. (Molson Coors, Constellation, and Boston Beer are already here.)
Collaborate. Partner with hemp or functional beverage brands to build cross-category ecosystems.
Those who make the leap early will control the emerging hybrid market where buzz, balance, and wellness intersect. Those who hesitate risk losing relevance in every direction.
The Inflection Point
If 2020-2024 were the proof of concept, 2025 has been the inflection point.
Both the non-alc and THC beverage industries have matured past curiosity. They’ve reached credibility. Retailers are dedicating full sections. Liquor distributors are signing contracts. Investors are treating both like long-term bets rather than side experiments.
Because the truth is, most consumers don’t care whether their drink came from a brewery, a hemp processor, or a functional lab. They care how it makes them feel, and how it fits into their lives.
Closing Thoughts
The $1B non-alcoholic milestone and the $3.8B hemp-derived THC surge are two chapters of the same story. That story is one of a cultural movement, one that values presence over escapism, and control over consequence. These drinks are a collection of choices that fit every mood, moment, and mindset.
That new mindset is not about what is missing, but what is possible.


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