THC-Infused Beverage Sales Surpassed $1 Billion in 2024 — But An Uphill Battle Still Awaits

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A report from Whitney Economics estimates that THC beverage sales raked in between $1 billion and $1.3 billion throughout 2024. Though growth is on track to continue at an exponential rate, an uneven patchwork of legislation may pose serious difficulties for the industry in years to come.

Even if you’ve never consumed one of these drinks before, there’s a good chance you’ve encountered one in the wild. They’re sold under cheeky brand names like CANN or High Spirits, often with colorful packaging that advertises an easy-going, health-conscious attitude. Most importantly, THC beverages are now available not only at licensed dispensaries, but also at established retailers like Total Wine & More.

Chief economist Beau Whitney attributes the surge to several factors. As global demand for alcohol has lulled in recent years, it appears that younger demographics (namely Gen Z) are trading out liquor for cannabis — whether it be flower, gummies or, in this case, infused drinks. The shift has coincided with a wellness movement that’s proliferated podcasts and trending brands of the day. Low-calorie, low-sugar options are firmly in the zeitgeist, and few industries have been able to capitalize on the concept quite like THC beverages.

The report suggests that the total market value of the category currently sits somewhere between $5 billion and $15 billion. Of the sales that were recorded in 2024, 24% came from marijuana dispensary retail and 74% came from hemp retail. This is an important distinction — one that hints at the rocky waters ahead.

The THC beverage market as we know it today exists because of the 2018 Farm Bill. In it, the federal government removed hemp, defined as cannabis with less than 0.3% THC by dry weight, from the national list of Schedule 1 substances. It was a watershed moment. Within a couple of years, products advertised as delta-8 and delta-9 THC began cropping up at stores across the nation, offering consumers a mildly inebriating experience minus the illegality.

States like Minnesota implemented frameworks to oversee production, distribution and sales on the local level. Others moved quickly in the other direction. Idaho, Iowa, Utah, Wyoming and Arkansas have implemented total bans on hemp-derived THC products, while legislative debates rage on in areas like Rhode Island.

Much like how marijuana legalization emerged as a states’ rights issue in the mid-2010s, hemp is experiencing the same in 2025.

Texas is a key battleground. Following months of heated back and forth, the Texas Legislature recently swatted down a bill that would’ve banned consumable hemp products containing “any detectable amount of cannabinoid.” Gov. Greg Abbot, a vocal proponent of the ban, signed an executive order on Wednesday adding key exceptions. The order directed state agencies to begin a rulemaking process banning hemp sales to minors, in addition to revised testing, labeling and application requirements for manufacturers.

“Texas will not wait when it comes to protecting children and families,” Abbot said in a public statement. “While these products would still benefit from the kind of comprehensive regulation set by the Texas Legislature for substances like alcohol and tobacco, my executive order makes sure that kids are kept safe and parents have peace of mind now, and that consumers know the products they purchase are tested and labeled responsibly.”