They’re both popular, both recreational alcohol and cannabis cause the user to “feel” their effects. But which is more popular? According to the IWSR, the leading source of data and intelligence on the alcoholic beverage market, says a growing number of consumers, specifically millennials, are showing a preference to consume both booze and buds, versus older generations which tend to stick with just one. This, in turn, is causing a decrease in overall alcoholic sales as their market and audience is now shared.
Once adult-use cannabis was legalized in the state of Colorado, the immediate numbers showed that residents were no longer spending as much money on beer and other alcohol. Total beer sales climbed as the population rose, but the amount consumed per person dropped.
Reports showed that one in three cannabis users reported drinking less alcohol than before it was legalized and nearly half (47%) said they preferred the effects of cannabis over alcohol. The alcohol market, which has been a leader in its culture for years (having been valued at $1,324 billion in 2018) – is finally faced with some serious completion as states across the U.S are legalizing recreational cannabis use. So, how will they compete? Or will the two markets find a way to co-exist?
Combining alcohol with cannabis?
Brands in the alcohol market understand the position they are in – and are finding that instead of working against the competition – they might as well join them. That’s where cannabis-infused drinks come into the picture.
In places like Canada, where cannabis is legal, alcohol companies are now pushing and marketing cannabis-infused beverages. These beverages are infused with cannabidiol (CBD) – which is an active ingredient in cannabis. Cannabis beverages are expected to exceed $1 billion in sales by 2022 – as their popularity is slowly rising as the cannabis beverage market is evolving every day.
In summary, brands could take the coexistence of the alcohol and cannabis markets as a good example of exceeding in competitive markets – even if that means partnering with your competitors.
Unsure of where to begin your creative branding process – or are you unsure of where your state stands on legalization? We know exactly how to lay the foundation for your brand. Give the experts at Cannabis Brands a call today.
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