Over the past couple of years, cannabis has crawled out of the shadow of junkie culture and into a multi-billion dollar industry that has taken root in sectors such as healthcare, pharmaceuticals, consumer products and agriculture. Publicly traded companies with inflated valuations compete to be the most innovative, while established blue chips partner with or buy marijuana-related businesses to gain access to the industry.
As the legal cannabis industry continues to grow and public support for legalizing the recreational and medical use of marijuana grows, more investors are taking notice. The latest Gallup poll, released in November 2023, shows that 70% of American adults support the legalization of marijuana in the U.S., up sharply from just 12% who supported it more than five decades ago in 1969.
According to an October 2022 Pew Research Center survey, a majority of Americans (88%) believe marijuana should be legalized either for recreational use by adults (59%) or for medical use only (30%).
As the legal cannabis industry continues to grow and public support for legalizing the recreational and medical use of marijuana grows, more investors are taking notice. The latest Gallup poll, released in November 2023, shows that 70% of American adults support the legalization of marijuana in the U.S., up sharply from just 12% who supported it more than five decades ago in 1969.
According to an October 2022 Pew Research Center survey, a majority of Americans (88%) believe marijuana should be legalized either for recreational use by adults (59%) or for medical use only (30%).
Here, we'll cover only a small but important part of the cannabis industry's spin-offs: for example, we'll talk about the role of major alcohol companies in the cannabis-based beverage market; we'll look at which apps are appropriate for pot, which ones are censored, and how cannabis entrepreneurs can navigate the minefield of social media; and we'll gain an understanding of what people are looking for and why they use cannabis.
Weed-based drinks
Cannabis-based beverages are becoming the new «trend» in the consumption of this product. But is this just a temporary phenomenon? Research shows that it is not. In 2023, the global cannabis beverages market size was worth $1.16 billion and is expected to grow at a CAGR of 19.2% from 2024, all the way to $3.8 billion by 2030.
So what is contributing to the increase in cannabis-infused beverage consumption? Today's consumers are becoming more health conscious and cautious about what they consume. For example, only 62% of young adults under 35 drink alcohol, a decrease from 72% in the last twenty years.
Overall, cannabis use is on the rise. According to the 2022 study, 17.7 million people reported daily or near-daily marijuana use, while only 14.7 million people drink with the same frequency.
Weed-based drinks
Cannabis-based beverages are becoming the new «trend» in the consumption of this product. But is this just a temporary phenomenon? Research shows that it is not. In 2023, the global cannabis beverages market size was worth $1.16 billion and is expected to grow at a CAGR of 19.2% from 2024, all the way to $3.8 billion by 2030.
So what is contributing to the increase in cannabis-infused beverage consumption? Today's consumers are becoming more health conscious and cautious about what they consume. For example, only 62% of young adults under 35 drink alcohol, a decrease from 72% in the last twenty years.
Overall, cannabis use is on the rise. According to the 2022 study, 17.7 million people reported daily or near-daily marijuana use, while only 14.7 million people drink with the same frequency.
Thus, there is a clear trend toward cannabis and away from alcohol, which is a concern for companies in the alcohol industry. In 2023, according to Marijuana Moment, wine and spirits sales have begun to decline, with total alcoholic beverage sales in the U.S. decreasing by 3%.
The reasons for this decline are due in part to more consumers choosing a non-alcoholic lifestyle (45% of millennials prefer non-alcoholic products) and having greater access to legal marijuana, including cannabis-infused beverages. It's no surprise that major alcohol companies like The Boston Beer Company have begun investing in these beverages. In 2022, they introduced their line of cannabis-infused iced teas in Canada under the TeaPot brand.
With the spread of cannabis legalization in the U.S., we can expect more big companies to enter the cannabis-based beverage market as they seek to diversify their revenue streams amid falling alcohol sales. However, the question arises: is the participation of major alcohol brands in the cannabis beverage market a sign of development or a potential threat?
Clearly, the presence of major players can help normalize cannabis use, as well as expand audiences and improve distribution channels. For example, the Total Wine & More chain has already begun working with cannabis brands to sell cannabis-infused soft drinks. The involvement of large companies may help establish clearer and safer regulations for cannabis products.
However, there is a question about the future of the smaller cannabis brands that are rapidly taking over the market. Will Big Alcohol buy them up and become the dominant force in the industry? Will these companies be able to displace the smaller firms, which could have a detrimental effect on their growth and development?
Other concerns include that Big Alcohol is putting profit over quality, and if they start dominating the cannabis beverage market, infused drinks could become diluted and even less effective. Not to mention that the additives that Big Alcohol adds to wine, beer, and other spirits are far from healthy. In fact, alcoholic beverages are known to «contain many carcinogenic contaminants that are introduced during fermentation and production, such as nitrosamines, asbestos fibers, phenols and hydrocarbons».
Is this the future we want for cannabis consumers?
These concerns are being voiced by many cannabis business leaders today.
Monica Olano, founder and executive director of the Cali Sober Mom organization and cannabis reform advocate, was quoted in the article «Cannabis Businesses Selling Out to Big Alcohol» stating: «Studies have shown that alcohol brands use additives in their products that have been linked to cancer. Are we really going to let the cannabis and hemp industry sell out to [Big Alcohol] and potentially ruin our healthy products with harmful additives?».
Other concerns include that Big Alcohol is putting profit over quality, and if they start dominating the cannabis beverage market, infused drinks could become diluted and even less effective. Not to mention that the additives that Big Alcohol adds to wine, beer, and other spirits are far from healthy. In fact, alcoholic beverages are known to «contain many carcinogenic contaminants that are introduced during fermentation and production, such as nitrosamines, asbestos fibers, phenols and hydrocarbons».
Is this the future we want for cannabis consumers?
These concerns are being voiced by many cannabis business leaders today.
Monica Olano, founder and executive director of the Cali Sober Mom organization and cannabis reform advocate, was quoted in the article «Cannabis Businesses Selling Out to Big Alcohol» stating: «Studies have shown that alcohol brands use additives in their products that have been linked to cancer. Are we really going to let the cannabis and hemp industry sell out to [Big Alcohol] and potentially ruin our healthy products with harmful additives?».
So what's the answer to the question: is the big alcohol companies' penetration of the cannabis-infused beverage market more of a progress or a problem?
Here's the bottom line. Big Alcohol's role in the cannabis-infused beverage market will bring both opportunities and challenges. What consumers should be wary of when purchasing cannabis-infused beverages is the ingredients, especially as more alcohol leaders enter the cannabis industry. If you want to indulge in a cannabis seltzer for the health benefits, make sure the beverage you choose is free of harmful additives.
In the coming years, we expect to see major alcohol brands partnering with small and medium-sized cannabis companies to create large-scale cannabis products. The best-case scenario for these industries will be to merge to meet consumer demand and address health concerns at face value.
Big social media and cannabis
Popular social media apps owned by billionaires like Mark Zuckerberg and Ilon Musk have their own rules, policies, and algorithms aimed at controlling cannabis-related content. Despite the legality of pot in some regions, users still risk being blocked or deleted for violating strict regulations on these networks.
Here's the bottom line. Big Alcohol's role in the cannabis-infused beverage market will bring both opportunities and challenges. What consumers should be wary of when purchasing cannabis-infused beverages is the ingredients, especially as more alcohol leaders enter the cannabis industry. If you want to indulge in a cannabis seltzer for the health benefits, make sure the beverage you choose is free of harmful additives.
In the coming years, we expect to see major alcohol brands partnering with small and medium-sized cannabis companies to create large-scale cannabis products. The best-case scenario for these industries will be to merge to meet consumer demand and address health concerns at face value.
Big social media and cannabis
Popular social media apps owned by billionaires like Mark Zuckerberg and Ilon Musk have their own rules, policies, and algorithms aimed at controlling cannabis-related content. Despite the legality of pot in some regions, users still risk being blocked or deleted for violating strict regulations on these networks.
YouTube eased restrictions on cannabis-related content in 2021, giving educators in this area a chance to become more visible. Your post will be protected if it is educational in nature. This is one of my favorite platforms due to its great reach. In October 2024, YouTube, owned by Google, had 2.7 billion monthly active users. It's also where monetization becomes possible, reaching 1,000 subscribers and 4,000 hours of views within a year.
The platform formerly known as Twitter is now called X and shows friendliness to content about cannabis. After its acquisition by Ilon Musk in 2023, it was announced that it would allow advertising for CBD and THC products.
Cannabis-related hashtags are often trending on X, making the platform a safe space for free speech and topics about weed, which is also evidenced by the many impressive photos from growers around the world.
The platform formerly known as Twitter is now called X and shows friendliness to content about cannabis. After its acquisition by Ilon Musk in 2023, it was announced that it would allow advertising for CBD and THC products.
Cannabis-related hashtags are often trending on X, making the platform a safe space for free speech and topics about weed, which is also evidenced by the many impressive photos from growers around the world.
LinkedIn has become a successful space for cannabis-related businesses. You can see many photos of plants and industry hashtags here. Many professionals consider this platform to be the best for communicating about pot, as LinkedIn has created a unique free space for cannabis business discussions, targeting an audience of 21 and older.
Reddit serves as a great community-building tool, providing the ability to post photos and set age limits for individual Subreddits. This platform allows users to get advice from vendors who specialize in specific genetics. Also of interest is a Subreddit called Trees, which was founded in 2009 and has over 2 million members.
Weed has also found its place in Discord, which was first popularized in the gaming community. This is because the platform provides end-to-end encryption for audio and video. The creation of servers and channels allows cannabis entrepreneurs to openly discuss their ideas and projects.
Reddit serves as a great community-building tool, providing the ability to post photos and set age limits for individual Subreddits. This platform allows users to get advice from vendors who specialize in specific genetics. Also of interest is a Subreddit called Trees, which was founded in 2009 and has over 2 million members.
Weed has also found its place in Discord, which was first popularized in the gaming community. This is because the platform provides end-to-end encryption for audio and video. The creation of servers and channels allows cannabis entrepreneurs to openly discuss their ideas and projects.
However, Telegram is no longer a safe space for cannabis producers due to recent policy changes. Many well-known creators have lost their accounts. Recent changes on Telegram prohibit activities considered illegal in most countries. The cannabis community will miss this space, and many are hopeful that pot will become legal in most countries in the future.
TikTok is an untapped market for weed. If content on this app goes viral, it will really take off. On the other hand, if you get tagged, your account will be shadow-banned and its reach will drop. In my experience, it's a gamble worth taking for many weed brands. Big risk, big reward.
Meta is a cruel mistress for cannabis creators. The Zuckerberg-led platforms — Instagram, Facebook and Threads — all share the same draconian anti-weed policy. Its Community Guidelines for Restricted Products and Services states, «Meta does not allow advertising that promotes or offers to sell THC products or cannabis products containing related psychoactive ingredients or drug-related paraphernalia such as bongs, tissue paper and vaporizers».
TikTok is an untapped market for weed. If content on this app goes viral, it will really take off. On the other hand, if you get tagged, your account will be shadow-banned and its reach will drop. In my experience, it's a gamble worth taking for many weed brands. Big risk, big reward.
Meta is a cruel mistress for cannabis creators. The Zuckerberg-led platforms — Instagram, Facebook and Threads — all share the same draconian anti-weed policy. Its Community Guidelines for Restricted Products and Services states, «Meta does not allow advertising that promotes or offers to sell THC products or cannabis products containing related psychoactive ingredients or drug-related paraphernalia such as bongs, tissue paper and vaporizers».
Instagram is one of the most widely used apps in the world with over 2 billion monthly active users. Regardless, building a community on Instagram remains an invaluable tool for the cannabis movement. Since its inception, cannabis creators have been building huge numbers of followers, but their accounts have been deleted without warning. It's a painful reality.
Cannabis industry
Imagine a huge, $27-billion (and growing) industry that can't take advantage of traditional consumer infrastructure like Amazon or PayPal. Yet millions of people and companies are actively participating. How to address the lack of infrastructure?
The cannabis industry is in the process of transitioning from black and gray markets to strict government regulation. This creates challenges due to the lack of standardized infrastructure and high compliance requirements. For example, the US has implemented seed-to-sale cannabis tracking software that requires significant data and technology integration. Ten years ago, such systems did not exist: companies must monitor the plant's journey from seed to final product.
Cannabis industry
Imagine a huge, $27-billion (and growing) industry that can't take advantage of traditional consumer infrastructure like Amazon or PayPal. Yet millions of people and companies are actively participating. How to address the lack of infrastructure?
The cannabis industry is in the process of transitioning from black and gray markets to strict government regulation. This creates challenges due to the lack of standardized infrastructure and high compliance requirements. For example, the US has implemented seed-to-sale cannabis tracking software that requires significant data and technology integration. Ten years ago, such systems did not exist: companies must monitor the plant's journey from seed to final product.
As cannabis remains under federal prohibition, many traditional IT providers are choosing not to work in this area. As a result, the entire industry is being built from the ground up, creating new technologies and products without relying on legacy systems. This makes it possible to utilize modern advances, but requires rapid adaptation and improvements.
Innovative solutions are becoming key to success. For example, in the area of payments, employees must have an in-depth knowledge of the specifics of the cannabis market in order to overcome challenges and comply with legislation. These innovations can then transfer to other areas, improving existing business processes and reducing service costs.
Innovative solutions are becoming key to success. For example, in the area of payments, employees must have an in-depth knowledge of the specifics of the cannabis market in order to overcome challenges and comply with legislation. These innovations can then transfer to other areas, improving existing business processes and reducing service costs.
Overall, the cannabis industry presents a unique opportunity for innovators, allowing them to offer flexible and effective solutions to the challenges they face.