As the nationwide intoxicating hemp market continues to surge alongside its marijuana cousin, more companies are tapping into the opportunities in what’s estimated to be a multibillion-dollar niche market. And within that massive hemp-derived THC market, beverages are gaining steam.
“There’s a lot of excitement, a lot of interest, a lot of momentum in the category” of hemp-based THC-infused beverages, said Liz Stahura, co-founder and chief operating officer of BDSA, during a webinar Tuesday hosted by Green Market Report.
Although BDSA doesn’t have solid data for the hemp market the way it does for marijuana, Stahura estimated that hemp-based drinks could grow into a $1.4 billion to $4 billion market in the United States over the next four years.
That’s apart from BDSA’s estimate that the legal marijuana market will grow to $44 billion by 2028, up from last year’s nation-wide $31.2 billion market, Stahura noted.
And even within regulated marijuana dispensaries, Stahura said, beverage sales are likely to roughly double by 2028. That doesn’t take into account hemp drink sales at mainstream retailers in states such as Texas or North Carolina, or direct-to-consumer hemp beverage sales over the internet.
Those sales avenues are also growing, said Mack Hueber, president of New York-based hemp brand Ayrloom.
“A lot of beverage brands are still doing a lot of direct-to-consumer. There’s a lot of channels where we can get consumers to try THC beverages,” Hueber said, adding that being able to expose consumers legally to new THC products in states that don’t yet have legal marijuana markets is a “huge win” for hemp companies like his.
But there are also plenty of logistical hurdles to navigate for hemp beverage makers, Hueber noted, including potency caps that vary from state to state. He noted that just in the New York, New Jersey and Connecticut tri-state area, his company has to produce three different SKUs for every flavor of canned hemp beverage they offer because each state has a different THC cap for drinks.
In his home state of New York, Hueber said, the maximum he’s allowed to sell is one milligram of THC per 12-ounce can. In Connecticut, it’s three milligrams. And in New Jersey, the cap has yet to be set, but he said regulators appear to be leaning towards 10 milligrams.
“Very different than alcohol,” Hueber said.
Constantly shifting state regulations are also among Hueber’s top business concerns, given how new the market is and how quickly various states are leaping to restrict hemp products. That has also, contributed to hesitancy by a lot of major mainstream retailers who could choose to carry intoxicating hemp drinks, like Total Wine.
“There’s a lot more that are hesitant to touch this category yet, until more concrete laws or regulations exist,” Hueber said.
But what Hueber’s company has found – particularly with its experience in the alcohol industry through its parent company, Beak and Skiff, which has a hard cider available in 24 states – is there’s success to be found in swapping in hemp drinks for alcohol, particularly with the help of alcohol distributors that Hueber already does business with.
“Liquid to lips wins,” Hueber quipped. “Directly from the alcohol playbook.”
Hemp-based drinks alone could grow into a $1.4 billion to $4 billion market in the U.S. over the next four years. Read More
