Craft Brewers Embrace Hemp-Derived THC Beverages as Alcohol Sales Decline

As younger consumers drink less alcohol and the no-alcohol market expands, craft brewers across the country are seizing a new opportunity: hemp-derived THC beverages. These cannabis-infused drinks offer an innovative way to diversify product lines, attract new demographics, and increase profit margins—without stepping too far outside of brewers’ existing expertise.

A Shift in Consumer Habits Drives New Innovations

For years, craft breweries thrived on a booming beer culture fueled by a growing demand for creative flavors and small-batch brews. But consumer behavior is changing. Younger Americans, particularly those under 35, are drinking less than previous generations. Gallup reports that alcohol consumption among this demographic has dropped 10 percentage points in the past 20 years.

Meanwhile, the no-alcohol beverage market is thriving. IWSR, a global drinks analytics firm, projects a 7% growth in the nonalcoholic beverage segment through 2028. For brewers facing stagnating or declining beer sales, this signals a need to evolve—and quickly.

THC-Infused Beverages Offer a Natural Pivot for Craft Brewers

Many craft brewers view the production of THC-infused beverages as a natural progression of their current operations. They already possess the infrastructure, distribution networks, and flavor development skills required to produce high-quality beverages. What’s new is the infusion of hemp-derived cannabinoids.

Charlotte-based NoDa Brewing Co. is among the breweries embracing this shift. While beer remains its core product, NoDa has ventured into the wellness space with nonalcoholic offerings. It first introduced Hop20, a hop-infused sparkling water, before launching a line of THC seltzers under the brand Happy Bird.

The Happy Bird lineup includes three flavors—grapefruit hibiscus (10mg THC), lavender lemon (5mg THC), and ginger lime (5mg THC)—each tailored for health-conscious consumers seeking a mild, relaxing experience. These beverages aim to appeal to customers looking for an alcohol alternative without sacrificing social or sensory satisfaction.

Economic Advantages Fuel Brewer Interest

The appeal of THC-infused beverages isn’t just about trends—there are compelling financial incentives too. Compared to beer production, crafting THC beverages can be significantly more efficient and profitable.

According to Jason Pickle of Volunteer Botanicals, it can take as little as six hours to produce a THC beverage, versus two weeks or more for beer. With lower ingredient costs and faster turnaround, the margins are often better. Some brewers can even sell these beverages direct-to-consumer in compliant states, reducing reliance on traditional distribution channels.

Pickle’s company supports beverage producers through a new “Beverage Accelerator Program,” offering the tools and education needed to bring THC drinks to market quickly and compliantly.

Co-Packing Opens Up New Revenue Streams

For brewers with excess production capacity, co-packing services present an additional income opportunity. In this model, breweries manufacture THC beverages for other brands, using their existing facilities to fulfill outsourced production contracts.

Daniel Meehan of New River Distilling notes that co-packing is becoming increasingly popular among brewers. Once they see how straightforward the process can be, many are convinced by the math. It provides a multifaceted revenue stream and helps offset slow beer sales, while still keeping operations within their areas of expertise.

Navigating a Complex and Shifting Regulatory Landscape

Despite growing enthusiasm, the regulatory environment for hemp-derived THC beverages remains a major challenge. Each state sets its own rules on allowable dosages, ingredients, packaging, and distribution. The lack of uniformity can make interstate expansion difficult, especially for smaller brands with limited legal resources.

Meehan describes the current legal framework as “treacherous,” requiring constant monitoring and adaptation. Brands looking to scale must carefully study each state’s guidelines to remain compliant and avoid jeopardizing their operations.

Nonetheless, the fact that many THC beverages fall under hemp laws rather than marijuana laws means some brewers can enter the space without risking their existing alcohol licenses.

Attracting New Demographics With Low-Dose Alternatives

THC beverages represent more than a business opportunity—they mark a cultural shift in how consumers approach relaxation and recreation. Low-dose formats, such as 5 or 10 milligrams of THC per serving, are designed to appeal to those who are cannabis-curious but cautious, or who want a mild experience without the unpredictability of traditional edibles.

Happy Bird’s branding, for example, leans into wellness and calm, targeting younger consumers and women who prioritize health and mindfulness. These are often individuals who might pass on alcohol altogether but are open to cannabis-based alternatives for stress relief or social engagement.

Importantly, Happy Bird doesn’t appear to be cannibalizing NoDa Brewing’s traditional beer sales. Instead, it attracts a new customer base—those who may not have made a purchase otherwise. This positions THC beverages as a complementary product line, not a replacement.

THC Beverages Versus Beer: Competing in the Same Space

In retail settings, THC beverages and beer often sit side-by-side, competing for the same shelf space. However, within brewery taprooms and tasting rooms, the products serve different purposes. A traditional beer drinker might sample a THC seltzer out of curiosity, while a non-drinker visiting with friends can opt for something that fits their lifestyle.

This dual offering allows breweries to cater to a broader audience without diluting their brand identity. It also reflects an evolving cultural landscape where consumers are increasingly seeking variety, moderation, and wellness in their consumption choices.

The Future of Craft Brewing May Be Cannabis-Infused

The entry of craft brewers into the THC beverage space signals a broader shift in the beverage industry. As the cultural stigma around cannabis continues to fade and the regulatory landscape slowly adapts, these products are poised to become a staple in bars, retail stores, and homes across the country.

Breweries that can innovate quickly, maintain compliance, and connect with emerging consumer values will be best positioned to thrive in this new era. Whether through hop waters, CBD-infused drinks, or THC seltzers, the future of craft beverage production looks increasingly green.

As alcohol consumption trends decline, hemp-derived alternatives are offering brewers a way to stay ahead of the curve turning what was once a niche product into a promising path for long-term growth.