As the cannabis industry continues to make waves, a recent report from Carnegie Mellon University reveals a significant shift in consumer behavior – daily or near-daily marijuana use is now more common than similar levels of drinking in the U.S. This trend is indicative of the increasing acceptance of cannabis among younger demographics, with first-time daily marijuana use surpassing daily drinking in 2022.
The data, collected from over 1.6 million participants across 27 surveys between 1979 and 2022, shows a 15-fold increase in daily cannabis users since 1992. Analysts predict that as younger generations grow up with legal cannabis options, the acceptance and usage of cannabis will continue to rise, potentially substituting traditional options like alcohol and tobacco.
The impending reclassification of marijuana by the Drug Enforcement Administration is expected to further boost the cannabis industry, allowing for increased access to funding, research, and investment opportunities for companies like Tilray, Canopy Growth, and Curaleaf. Meanwhile, the spirits and alcohol industry is adapting to changing trends among consumers, with younger legal drinking-age individuals turning to alcohol less frequently and opting for fewer drinks when they do consume.
Experts suggest that federal legalization of cannabis could have a negative impact on the alcohol industry, estimating potential decreases in beer volume growth rates in both Canada and the U.S. However, conflicting state-by-state policies for cannabis may soften the blow for major brewers and distillers like Constellation Brands, Diageo, AB InBev, and Molson Coors.
While the future implications of cannabis adoption on alcohol consumption remain uncertain, one thing is clear – the cannabis industry is on the rise, and investors should keep a close eye on the evolving market dynamics. Stay tuned to Extreme Investor Network for the latest updates and analysis on the intersection of cannabis, alcohol, and business trends.