From Fortune:

Dry January participants turned to weed as an alternative, causing alcohol sales to plummet by 52%, according to Bloomberg. Meanwhile, Bloomberg also reported that revenue growth for certain cannabis companies is expected to go up by 6% in Q1, with Oregon and Colorado seeing recreational weed sales spike in January.

Gen Z participants in Dry January turned to alcohol-free beverages, cannabis, or kombucha as substitutes for alcohol according to a Civic Science survey. Weed was the go-to choice for approximately one-third of participants between 21 to 25.

The alcohol market is expected to grow only by 1% between 2022-2027, with industry facing slow growth and relying on a dwindling consumer base of older drinkers. An increasing number of Gen Zers are abstaining from alcohol with 54% of them having not had a drink in the past six months.

The cannabis industry is forecasted to grow to $50.7 billion by 2028 from an estimated $31.8 billion in 2023, reports Forbes. Gen Z’s preference for weed over alcohol could explain why companies are looking to shift towards selling alcohol-free beverages and drinks with cannabis.

Gen Z and millennials are set to reshape the cannabis and alcohol industries, opting for sober living and consuming 20% less alcohol than their predecessors.

69% of 18-24 year olds prefer cannabis to alcohol, based on research from New Frontier Data. In order to meet their preferences, companies like Boston Beer and Tilray Brands are hoping to capitalize on the trend by creating infused alcohol-free beverages.

Cannabis-infused beverages remain the fastest growing category of cannabis products, which are projected to double in sales from about $290 million in 2022 to $640 million by 2028.



Read more: Dry January saw weed sales increase as Gen Z turned to cannabis