Research: Are consumers substituting alcohol with cannabis beverages at a higher rate than they are substituting with 0.0% beers or functional mocktails?

Substitution Trends: Cannabis Beverages vs. Zero-Alcohol Alternatives

The beverage industry is currently experiencing a massive shift in consumer behavior characterized by declining traditional alcohol consumption and the concurrent rise of damp-drinking lifestyles [1, 4]. As consumers seek alternatives to traditional beer, wine, and spirits, two primary substitute categories have emerged to capture the adult share-of-occasion: cannabis-infused beverages (THC/CBD) and zero-alcohol options (0.0% beers, spirit alternatives, and functional mocktails) [1, 2, 4].

While both categories are growing rapidly, analyzing whether consumers are substituting alcohol with cannabis drinks at a higher rate than with zero-alcohol alternatives reveals a complex landscape defined by legal availability, generational preferences, and price perceptions.

The Rise of Cannabis as an Alcohol Substitute

Cannabis is increasingly viewed as a direct substitute for alcohol, posing a “significant threat” to the traditional alcohol industry [3]. Recent data illustrates a historic inversion in consumption habits:

• Daily Usage Overlap: A 2022 study found that 17.7 million people in the U.S. reported daily or near-daily marijuana use, surpassing the 14.7 million people who reported drinking alcohol at the same frequency [1]. Young adults are nearly three times more likely to use marijuana daily than alcohol [3].
• Direct Substitution Effects: Surveys indicate that more than half of marijuana consumers consume less or no alcohol after using cannabis [3]. Anecdotal and survey data suggest that consumers who switch to cannabis drinks cut their alcohol use nearly in half [5]. In Canada, where cannabis is federally legal, legalization has been directly associated with a decline in beer sales [3].
• Generational Drivers: Millennials and Gen Z are leading the cannabis beverage trend. Roughly 38% of Gen Z and 37% of Millennials plan to try a cannabis beverage, citing them as a lower-calorie, “more-natural” alternative to alcohol that provides relaxation without the hangover [1, 4].

Growth of Zero-Alcohol and Functional Mocktails

Simultaneously, the market for adult-soft-drinks and non-alcoholic alternatives has matured from a novelty into a lifestyle staple [2].

• Sales Growth: Non-alcoholic beer purchases among U.S. households increased by 22% between December 2023 and November 2024, while non-alcoholic wine saw a 41% increase in dollar sales in 2024 [4].
• Functional Premiumization: Brands are heavily leaning into premiumization by adding functional benefits (e.g., adaptogens, nootropics) to beer-adjacent-categories and mocktails. Over 40% of U.S. consumers agree they are willing to pay more for alcohol substitutes that offer functional benefits [2].
• Social Inclusion: Zero-alcohol options are positioned to eliminate the stigma of sober curiosity, allowing consumers to participate in the craft and social experiences of drinking without the ethanol [2].

Comparative Substitution Rates: Cannabis Beverages vs. 0.0% Beer

Does cannabis substitute for alcohol at a higher rate than zero-alcohol beverages? The data suggests a dichotomy between behavioral intent and format accessibility:

1. Behavioral Intent favors Cannabis: In terms of raw physiological substitution, cannabis is winning the daily-use battle against alcohol [1, 3]. Those who adopt cannabis demonstrate a highly aggressive substitution rate, often halving their alcohol intake or abandoning it entirely [3, 5].
2. Format Accessibility favors 0.0% Beverages: When isolating beverages specifically, 0.0% beers and mocktails currently have a higher adoption rate and household penetration due to market logistics [4]. Cannabis beverages face substantial headwinds: they are legally restricted to recreational use in only 24 U.S. states, and their usage currently correlates most strongly with consumers who are already familiar with cannabis rather than netting entirely new users [1].
3. The Price Barrier (Shared Challenge): Both categories face consumer resistance regarding price. Cannabis drinks struggle with high price points, though brands attempt to justify this through wellness and social benefits [1, 4]. Conversely, 52% of consumers feel non-alcoholic versions of traditional drinks are not worth their premium price tag, failing to realize that alcohol is often the least expensive component of a traditional drink’s production cost [1, 2].

Contradictions and Research Gaps

• Lack of Head-to-Head Conversion Metrics: The provided sources highlight overarching macro-trends (e.g., total daily cannabis users vs. daily alcohol users) but lack specific percentage data comparing the direct switching rate from alcohol to cannabis drinks versus alcohol to 0.0% beer within the same demographic.
• Cannibalization Clarity: It remains unclear if functional mocktails and cannabis beverages are cannibalizing each other’s market share, or if they operate in entirely different dayparts/occasions. (See: does-zero-alcohol-beer-cannibalize-soft-drinks-or-alcohol).
• Regulatory Constraints vs. Organic Demand: It is difficult to measure the true organic substitution rate of cannabis beverages due to the fragmented legal landscape [1]. The data may artificially skew in favor of 0.0% beer simply because it can be sold globally without restriction.

Recommended Further Research

To fully map this consumer transition within the wiki, the following queries and sources should be investigated:

• how-do-cannabis-beverages-compete-with-adult-soft-drinks — Specifically looking for cross-purchasing data in fully legal markets (e.g., Canada or California) to see if consumers buy both or choose one over the other.
• Market reports on the exact unit volume of cannabis beverages sold compared to non-alcoholic beer volume in states where both are legally equivalent in retail environments.
• Research into on-premise (bars/restaurants) adoption rates of THC beverages versus 0.0% beers during traditional “happy hour” occasions [3].

References

1. What’s Replacing Alcoholic Beverages? - CoBank Site — cobank.com
2. Consumers turn to low, no-alcohol for function, flavors | Beverage Industry — bevindustry.com
3. More Young Adults Are Opting For Cannabis Drinks Over Alcohol At After-Work Happy Hours, Poll Shows - Marijuana Moment — marijuanamoment.net
4. Cannabis Drinks Surge as Alcohol Sales Decline — mgmagazine.com
5. People who switched to cannabis drinks cut their alcohol use nearly in half : r/drinkcannabis — reddit.com