June 8, 2021 by House of Saka

More Americans are turning away from alcohol in favor of healthier alternatives. Though COVID-related lockdown restrictions led to brief a surge in sales, alcohol use in the United State is on the decline. 

Alcohol sales fizzle out

In the first quarter of 2020, as lockdown restrictions were first put into place, alcohol sales increased by 54%. Yet one year later sales have fallen flat, declining by 1.9%. One report found that alcohol manufacturers were “disproportionately affected by the coronavirus,” and estimates that global alcohol sales won’t rebound until 2024, and that “recovery” in the U.S. might take even longer. 

During the same time, the non-alcoholic beverage market grew by leaps and bounds. According to a report by IWSR, a London-based data and intelligence company which tracks worldwide alcohol trends, the no/low alcohol market in the US grew by more than 30% in 2020.  By 2025, Global Market Insights projects the global non-alcoholic wine and beer market alone will account for $30 billion in annual sales, growing at a CAGR of seven percent. 

No such thing as moderation

While it is generally accepted that alcohol is generally unhealthy, particularly when used heavily, we are just coming to understand how bad for the human body alcohol actually is. An observational conducted by the University of Oxford found a relationship between alcohol use and shrinking brain mass. 

Speaking with CNN, the study’s lead author Anya Topiwala, a senior clinical researcher at Oxford, noted that brain volume “reduces with age and more severely with dementia. Smaller brain volume also predicts worse performance on memory testing.”

As the true health effects of alcohol become known, more Americans are seeking out healthier options; but non-alcoholic beverages are not the only alternative. Cannabis has increasingly become a popular alternative to alcohol. 

Market Opportunities: cannabis beverages as a healthier alternative

While alcohol sales have floundered during the pandemic, the cannabis industry has flourished. In 2020, global cannabis sales rose 48% to $21.3 billion. Over the five years, the market will swell to more than $90 billion in annual sales. Unlike alcohol, cannabis is far less toxic and carries far fewer health effects.

Also, unlike alcohol, cannabis can be enjoyed in a variety of forms to avoid the negative effects of smoking. With declining alcohol sales, a rise in non-alcoholic beverages and the desire for a healthier alternative, cannabis beverages represent one of the most viable alcohol alternatives. There are far fewer health effects, it is impossible to overdose on, and it closely recreates the “drinking experience.”

Cannabis brands have become increasingly savvy as to how they market their products, aiming their efforts towards alcohol users looking for a healthier alternative. Thanks to advances in emulsion technology, cannabis brands can now create alcohol-free cannabis beverages that taste just like their original alcoholic counterpart. 

For example, the luxury-infused cannabis brand House of Saka has redefined the drinking with their award-winning Saka Pink and White alcohol-removed cannabis wines. Their latest foray into beverages aims at redefining the classic cocktail with Saka Spark “Mimosa,” a sparkling cannabis wine boasting Mimosa-strain-specific live resin.

Brands like House of Saka are why cannabis beverages make up one of the fastest segments in the industry. According to MJBizDaily, cannabis beverage sales grew by 40% in 2020. By 2025, sales are expected to reach $2.8 billion. Between the cannabis market, and the dwindling alcohol market, there is a significant opportunity for enterprising brands savvy enough to close the gap.