Alcohol Use May Be Declining, But We Still Want That Buzz

Alcohol consumption in the United States has hit a record low in 2025, with only 54% of adults reporting they consume alcohol, according to a Gallup report. This decline reflects a broader trend where younger consumers are reducing their intake and seeking alternative beverages. In response, the non-alcoholic and cannabis-infused drink markets are expanding rapidly.

The non-alcoholic beer, wine, and spirits category grew by 22% year over year by August 2025, partly driven by cannabis use. THC-infused beverages, such as those offered by Nowadays, are gaining popularity among a diverse consumer base aged 25 to 65. The hemp THC beverage sector, which includes products like those from Nowadays, was valued at $93 million in 2025.

However, this rapid growth is under threat. A federal bill set to take effect in November 2026 would limit legal hemp products to 0.4 milligrams of total THC per container. Nowadays' drinks currently range from 2 to 10 milligrams per container. CEO Justin Tidwell has stated that the company and others like it may be forced to reduce their product offerings or face elimination if the bill is not amended.

Why Did This Happen?

Consumer demand for alternative beverages has been rising due to shifting preferences, health concerns, and regulatory changes. The alcohol industry is being affected by a combination of declining consumption and the emergence of new product categories.

The growth of THC-infused beverages is a direct response to these shifts. Brands like Nowadays are filling a niche for consumers seeking a different kind of buzz without alcohol. The company's success is attributed to social media exposure, particularly viral TikTok videos, and strategic partnerships with events like the Electric Daisy Carnival.

The broader trend includes a decline in traditional alcohol consumption, especially among Gen Z and millennials, who are opting for more varied and experiential alternatives. This trend is being mirrored in the bar and restaurant industry, which is adapting its menus to include non-alcoholic and cannabis-infused cocktails.

How Did Markets Respond?

The hemp THC beverage market is still relatively small but is growing at a rapid pace. The category's expansion is being supported by increasing consumer interest in cannabis products and a willingness to experiment with new formats. However, regulatory uncertainty remains a major risk.

Nowadays has experienced explosive growth, with sales increasing by 270% in the first half of 2025 compared to the same period in 2024. The company is expanding its product line with seasonal flavors and is leveraging event sponsorships to reach new customers. Tidwell has acknowledged that the next year will be critical for navigating regulatory challenges and securing the future of the industry.

The impact of the proposed THC restrictions could be severe. If implemented without changes, the new federal limits could force companies like Nowadays to reduce their product strength significantly or exit the market. This regulatory challenge is not unique to the U.S., as similar debates are occurring globally over how to classify and regulate THC-containing products.

What Are Analysts Watching?

The beverage industry is closely monitoring regulatory developments and consumer behavior shifts. Analysts are paying attention to how lawmakers respond to industry lobbying and whether the bill can be revised to allow for continued innovation in the hemp THC beverage market.

The success of companies like Nowadays will depend not only on regulatory decisions but also on the ability to maintain consumer engagement and product innovation. Tidwell has emphasized the importance of safe and responsible product distribution while continuing to expand the company's offerings.

In addition to regulatory risks, the broader food and beverage industry is adapting to new market dynamics. Innovations in packaging and sanitation technologies are becoming increasingly important as companies seek to meet consumer expectations for convenience, sustainability, and safety according to market analysis. This includes a focus on cohesive packaging solutions and advanced disinfection methods, which are being driven by e-commerce growth and environmental concerns.

The market for industrial AI applications in food and beverage production is also expanding. Companies are investing in technologies that improve efficiency and reduce waste in high-velocity production environments. These developments could have significant implications for how the industry operates in the coming years.

The future of the THC beverage market will likely be shaped by a combination of regulatory clarity, consumer preferences, and technological advancements. Investors and industry stakeholders are watching these trends closely as they seek to understand the long-term potential of this emerging sector.