A report delving into the emerging THC beverage market in the USA says while it’s still early days, drinks infused with the cannabinoid are already gaining serious traction.
THC (tetrahydrocannabinol) is an intoxicating cannabinoid that is increasingly appearing in beverages such as teas and sodas. According to Whitney Economics, THC beverages are now legally accessible in the majority of US states, with only seven states totally banning them.
“A confluence of factors, including shifting consumer behavior, economic softening and federal regulatory changes, combined to open the doors to a rapid expansion of THC beverages across the United States,” says Whitney Economics Chief Economist Beau Whitney.
Among those changes were the federal decoupling of hemp from marijuana via the 2018 Farm Bill. Using hemp-derived THC meant products could be sold directly to consumers with less regulation and oversight.
So, what’s the market currently worth?
Whitney says conservatively, the US THC beverage market is currently valued between $1.0 billion and $1.3 billion. However, the total potential market value is between $9.9 billion and $14.9 billion, leaving plenty of room for growth. Whitney expects growth to “expand exponentially” in the near and medium terms.
There’s no shortage of players trying to crack the market, with 500 – 750 brands in this space nationally. Most are averaging sales of $2 million a year, although some are exceeding $10 million.
But fewer than 20 have reached economies of scale, and production costs remain high compared to other beverage industries. THC beverage production is an intensive process involving an extended supply chain and testing at multiple stages of production; more so than testing associated with conventional marijuana products.
While the next several years for the industry could be bumpy as federal and state policies settle, Whitney is bullish about the sector’s future.
“Given the level of economic activity, regulators are looking for ways to enable the market more so than to ban it. This will ultimately lead to more favorable policy rather than outright bans. It will just take a while for this to occur. Operators will need to prepare for this dynamic.”
Full of interesting facts and figures, U.S. THC Beverage Report (2025) can be downloaded here.
Founded in 2014, Whitney Economics provides data, analysis and thought leadership on the U.S. and global hemp and cannabis industries. Founder Beau Whitney is also currently the Chief Economist for the National Industrial Hemp Council (NIHC) and the National Cannabis Industry Association (NCIA).
