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The $1 Billion Buzz: U.S. THC Beverages Poised to Soar

THC BEVERAGE $1 BILLION BOOM


The $1 Billion Buzz: U.S. THC Beverages Poised to Soar

In 2024, THC beverage sales in the U.S. sprinted past the $1 billion mark — and that’s just the beginning. According to Whitney Economics, most brands pull in around $2 million in sales annually, while industry leaders easily surpass $10 million. Projections suggest the market could swell to as much as $10 billion in the years ahead.

“A confluence of factors — shifting consumer habits, economic cooldown, and evolving federal rules — opened the doors to a rapid expansion of THC beverages,” said report author Beau Whitney.
“These products are helping shore up revenue that's declining in beer, wine, and spirits sectors.”

Key Findings:

  • There are up to 750 brands nationwide; roughly 200 are sold via marijuana dispensaries.
  • The total potential market is valued between $9.9 billion and $14.9 billion.
  • Yet, THC beverages currently account for just 1% of all cannabis sales.

High-profile multistate cannabis operators are adding hemp-derived THC drinks to their portfolios — and even mainstream alcohol retailers like Total Wine & More are jumping in.

“We’re still in the early innings,” notes Art Massolo of Cycling Frog, a major beverage brand. These drinks are cultivating a “new kind of drinking culture — rooted in control, wellness, and enjoyment.”

The Legal Patchwork: Where Are THC Beverages Outright Banned?

While many states permit hemp-derived THC drinks under regulation, several have banned or severely restricted them. As of mid-2025, states where intoxicating THC beverages are prohibited or restricted include:

  • California – Banned outside dispensaries; many hemp-derived THC beverages are outright barred.
  • Idaho – Enforces a zero-tolerance policy; any THC product is illegal.
  • Iowa – Tight potency caps (e.g., 4 mg per can), making typical THC drinks noncompliant.
  • Kansas – Explicitly prohibits any consumable hemp product with active THC.

Additionally, Texas nearly enacted a full ban on THC consumables — but Governor Abbott vetoed the bill on June 22, 2025, opting instead for regulated oversight and calling lawmakers back for a special session.

So, while Texas doesn’t currently ban THC beverages, the legal landscape remains volatile.

TL;DR Snapshot

Metric Value / Insight
2024 U.S. THC drink sales Exceeded $1B
Average brand sales ~$2M
Top brand sales > $10M
Forecasted market potential $9.9B–$14.9B, possibly reaching $10B+
Brands in market ~750, with ~200 in dispensaries
Current cannabis market share ~1%
Banned / restricted states California, Idaho, Iowa, Kansas; Texas narrowly avoided a ban


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