Guiding the Evolution of THC-Infused Drinks: Lessons From Alcohol eCommerce

Gen Z is consuming 20% less alcohol than millennials, with 61% reducing their intake in 2024. What is this young generation drinking instead? Premium mocktails and THC-infused drinks.

The THC-infused beverage market is expected to reach $117 billion by 2032 but faces more regulatory complexity than its non-alcoholic counterparts. Hemp-derived products face constantly changing regulations that vary by state, while cannabis dispensary products can only be sold through licensed retailers. By adapting established alcohol eCommerce frameworks, the THC beverage industry can solve compliance challenges and create unprecedented market access, democratizing distribution for brands and opening opportunities for millions of online merchants to participate in this growing sector.

THC-Infused Beverage Market Growth and Regulatory Reality

One state is already proving the potential of the THC beverage market. In just two years, Minnesota has built a $200 million market with 4,000 licensed retailers selling everything from seltzers to craft brews. Even established breweries have jumped in, with many crediting THC beverages for keeping their businesses afloat during challenging times.

Harvard Health researchers found daily cannabis use now outpaces daily drinking — especially among young adults embracing “California sober” lifestyles favoring THC beverages over alcohol. 

But this growing market faces significant obstacles, such as conflicting state regulations, limited retail distribution options, and complex licensing requirements. Unlike alcohol, which can be shipped across state lines and sold online, THC-infused beverages are hindered by a complicated network of local laws. This brick-and-mortar constraint limits consumer access and prevents brands from establishing direct relationships with their customers – missing critical opportunities for data collection, preference tracking, and personalized marketing that drive brand loyalty.

State beverage alcohol agencies are increasingly overseeing cannabis regulation, applying lessons from decades of alcohol oversight. Digital compliance systems that track direct-to-consumer (DTC) alcohol sales across state lines could adapt to monitor THC beverage distribution. These specialized regulatory technology platforms  (RegTech) have already solved complex compliance challenges for online alcohol sales, such as age verification and shipping regulations, and could be repurposed for cannabis. The alcohol industry’s established interstate commerce technology provides a ready template for building safe, compliant THC beverage sales channels while protecting consumer safety.

Leveraging Alcohol eCommerce 

Online alcohol sales pioneers solved many challenges through the “4th Tier” distribution model — a framework that could serve as a template for THC beverages. While the traditional three-tier system (producer to distributor to retailer) limited market access, the 4th Tier enabled licensed retailers and producers to expand alcohol sales through established eCommerce platforms. This innovation democratized the industry, allowing millions of online merchants to participate in alcohol sales while creating unprecedented distribution opportunities for brands to reach consumers directly.

The alcohol industry spent decades building its current eCommerce framework. THC-infused beverage companies can accelerate this journey by taking specific steps now:

• Establish a compliance infrastructure that can adapt to changing state regulations. This flexible foundation will help companies quickly enter new markets as laws evolve without needing to rebuild systems from scratch.
• Form partnerships with established eCommerce platforms and retailers. By integrating with existing digital commerce systems, THC beverage companies can tap into proven distribution networks and reach consumers through familiar shopping channels.
• Invest in age verification and product tracking technologies. Robust verification systems protect both consumers and companies, while detailed tracking ensures product safety and helps prevent diversion to unauthorized sellers.
• Develop clear protocols for interstate commerce as regulations allow. Having standardized procedures ready for multi-state sales will position companies to expand quickly when federal laws permit broader distribution.
• Collaborate with state alcohol agencies as they begin overseeing cannabis regulations. Early engagement helps shape practical policies and ensures companies understand compliance requirements before they take effect.

The alcohol industry’s evolution from Prohibition-era constraints to today’s democratized online marketplace demonstrates what’s possible. The same thoughtful approach to regulation and technology can help THC-infused beverages move beyond dispensaries and into mainstream retail.