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Cannabis beverages struggle to win broad adoption
A patchwork of laws and consumer hesitancy keeps hemp-derived THC drinks from becoming mainstream, despite market growth.
A closer look at why cannabis drinks have not yet become mainstream despite industry optimism and growing regulatory attention.
Cannabis Drinks Struggle to Break Through Despite Progress
AMASS Brands Group relaunched its Afterdream THC beverage in May after an earlier 2021 release was pulled due to unclear selling rules. The company says the regulatory environment is clearer but still unsettled, and that scale remains a challenge. Market researchers estimate hemp-derived THC beverages could reach hundreds of millions in sales this year, far below the beer and wine markets.
Key Takeaways
"The regs could still go the wrong way here, and this could be very challenging."
Mark Thomas Lynn on regulatory risk
"There have been different approaches to how tightly they are regulated, whether they're regulated, whether it's just kind of a free-for-all."
Elisabeth Stahura on regulatory framework
"There is an absurd amount of white space here, and I think it's going to take a long time to get where this industry eventually grows to."
Scott Selix on market trajectory
"If we can start to seed these people with these beverages, it is going to get them at some point in time into our dispensaries."
Keef Patterson on audience reach
Industry observers describe a long road ahead. A stable federal stance and predictable state rules are needed for real growth, and that consensus has not arrived. The opportunity may lie in changing consumer habits toward low-dose, social, non-alcoholic options. Brands are racing to improve taste and packaging while educating shoppers who still see cannabis as stigmatized. If lawmakers tighten rules or roll back the hemp loophole, the growth story could falter quickly.
Highlights
- Taste matters more than hype in this slow burn
- A drink that fits in at a bar not a lab
- Education is the real barrier to adoption
- Regulatory patchwork could slow the entire market
Regulatory and political risk could slow cannabis drinks
A patchwork of state laws and shifting federal rules create ongoing uncertainty for hemp-derived THC beverages. Legislative fights and proposals to close hemp loopholes, plus bans in some states, could curb future growth.
Markets will tell the pace as rules settle and consumer trust grows.
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