DENVER – Sales of beer, wine, and spirits continue to fall in the United States as more Americans seek to moderate their alcohol consumption. At the same time, cannabis consumption is rising and the market for cannabis-infused beverages shows significant potential, according to a new report from CoBank’s Knowledge Exchange.
Younger generations drive cannabis-drink boom
Driven largely by younger generations for health and economic reasons, U.S. sales of cannabis beverages are projected to reach $2.8 billion by 2028. That remains small compared to the U.S. market for alcoholic beverages. However, growth rates for the two product categories differ considerably. Cannabis beverages have a projected compound annual growth rate of 16.9 percent through 2028, while at-home alcoholic beverages are expected to see a CAGR of 2.4 percent through 2030.
Drivers for cannabis drinks’ market growth vary by generation, according to CoBank food and beverage economist Billy Roberts. Millennials and Gen Z lead the trend, citing cannabis beverages as a lower-calorie and “more-natural” alternative to alcohol, as well as the ability to consume cannabis in a format such as seltzer or tonic. For older consumers seeking relaxation or a medical benefit, cannabis beverages offer an appealing alternative to more traditional consumption methods. But headwinds including a higher price point remain a challenge for cannabis-infused drinks.
Innovation and flavor lead the way
Roberts said continued growth in the category likely will be fueled by advancements in flavor and effects-forward formulations.
“The trend toward non-alcoholic beverages and their rapid growth in sales is prompting considerable innovation in the space,” he said. “Alcoholic drinks will continue to fight for share not only with non-alcoholic iterations of familiar bar favorites, but also with an increasing array of cannabis-infused beverages positioned to offer benefits ranging from stress relief and enhanced sleep to fitness recovery.”
To compete, “beverage producers in the consumer-packaged-goods space are introducing options with novel sensory experiences that can stand on their own, rather than simply mirroring alcohol-based counterparts,” he added.
Global wine and spirits markets show similar decline
Declining alcohol consumption is not unique to the U.S. In 2024, global wine consumption fell to its lowest level since 1961, according to the International Organisation of Vine and Wine. In the U.S. alone, wine consumption fell by 5.8 percent in 2024. More broadly, volume sales across all alcoholic segments continued to erode in 2025, as noted in NielsenIQ’s The Halftime Report.
Meanwhile, virtually all alcohol beverage categories have seen competitors enter the market offering low-alcohol or non-alcoholic beverages, with beer alternatives proving most successful. Non-alcoholic beer purchases among U.S. households increased 22 percent from December 2023 to November 2024, according to consumer research firm Circana. And while the market size of non-alcoholic wine may pale in comparison to other adult beverages, it registered a 41-percent increase in dollar sales in 2024.
Sober-curious lifestyles reshape consumer demand
Nearly half of Americans are trying to drink less alcohol in 2025, with the number markedly higher among younger generations. According to data from NCSolutions (now part of Circana), the level of interest in sober-curious lifestyles has increased 44 percent in the past two years and a quarter of American adults report drinking no alcohol in 2024. Avoiding or limiting alcohol is not entirely borne of an interest in avoiding mood-altering beverages. Instead, consumers appear much more motivated by economic and wellness reasons.
Cannabis drinks and sober-curious trends: Key questions answered
Why are alcohol sales declining in the U.S.?
Economic pressures, shifting wellness priorities, and younger generations’ preference for moderation have reduced demand for beer, wine, and spirits.
How fast is the cannabis-beverage market growing?
According to CoBank, U.S. cannabis-infused beverage sales are projected to hit $2.8 billion by 2028, reflecting a 16.9 percent CAGR.
What types of cannabis drinks are most popular?
Low-dose seltzers, tonics, and “functional” formulations offering calm, sleep, or fitness-recovery benefits lead sales and new product development.
What challenges do cannabis beverages face?
High price points, regulatory hurdles, and limited retail access remain barriers, though innovation in taste and onset speed is helping close the gap.
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