Study Suggests Marijuana May Have Bigger Affect On Alcohol Sales Than Previously Thought
Recent finding from the Cannabiz Consumer Group (C2G) suggest that legal cannabis sales could “canna-balize” the retail beer industry by more than 7.1%. If/When cannabis sales are legalized nationwide that could translate to $2 billion dollars in lost sales annually.
The study suggests that 27% of beer drinkers have said that they have already substituted cannabis in favor of beer, or they would in the future if recreational cannabis use became legal in their state. Entrepreneur.com has said that tailgaters at Denver Bronco’s football games have already started getting high prior to games rather than getting drunk.
The market size and potential are huge. This time last year there were 24.6 million legal consumers in the United States. Since that time, legalizatio has spread through both medicinal and recreational, or both. C2G suggests that cannabis penetration will settle at a level comparable to sales of beer and wine and create a $50 billion dollar industry.
The survey from Cannabiz had 40,000 individual participants and over 55 million cannabis purchases.
“As legalization extends to additional states, either through medicinal or recreational legislation or both, C2G projects that legal cannabis penetration will settle at a level comparable to that of beer and wine and that a fully mature market would create a new $50 billion industry,” C2G said in a statement.
What can the beer industry do?
“Those at risk of losing sales to legalized cannabis can undertake a variety of actions to offset their losses,” according to Rich Maturo, Chief Innovation Officer at C2G. “Consumers use cannabis to satisfy various need social, medical and experiential need states. By understanding these needs, those at risk of losing sales to cannabis can try to offset some of the losses by understanding and speaking to a consumer’s needs. Unfortunately, there is no doubt that leakage will occur. Those companies that are gathering insights on cannabis and have the foresight to see it as presenting an opportunity in addition to a risk will fare much better than those who strictly take a defensive position.”