Yo, check it out, fam! I’m ’bout to drop some knowledge on y’all about this sick analysis by TD Cowen’s analyst, Vivien Azer. She be talkin’ ’bout how the cannabis game is straight up beatin’ alcohol when it comes to sales. It’s a whole new level of competition, my peeps!
So, peep this: over the past five years, alcohol sales in states where weed is legal have been laggin’ behind by 100-150 basis points, according to Azer. That’s a big ol’ gap, my dudes! And listen up, ’cause Azer’s research predicts that the cannabis industry is ’bout to blow up like fireworks on the Fourth of July. She sayin’ US cannabis sales could reach a massive $29 billion by 2023! That’s some serious green, man!
This ain’t no fluke, bros. Azer been watchin’ the cannabis game since way back in 2014 when she became the first Wall Street analyst to cover this emerging industry. She straight up anticipatin’ a shift in the game, with 18 million new users jumpin’ on the cannabis train while 2 million people give up drinkin’. It’s a whole new world we livin’ in!
Let’s talk specifics, my fam. Colorado is the leader of the pack when it comes to this new wave of consumer preferences. They got an 11% market share for weed now, compared to a measly 4% just five years ago. That’s some serious growth, right there! And get this: two-thirds of cannabis consumers are sayin’ they cut back on the booze. In the 18 to 25-year-old crew, 68% be smokin’ that good stuff while only 74% be sippin’ on alcohol in 2022.
And the stats don’t lie, my peeps. States with legal weed ain’t performin’ as well as those without it. The U.S. Bureau of Economic Analysis found that these states lag behind by over 100 basis points. That’s a big difference, my dudes! And when it comes to select Nielsen states, we talkin’ ’bout a 140 basis points gap. Even the 5-year alcohol volume growth rate for states with legal weed falls behind by 150 basis points compared to those without it.
Now, when it comes to the stock market, there’s some interesting stuff happenin’, fam. Azer reckon alcohol stocks will hold strong for now, but she warnin’ that people who start smokin’ that dank ganja might start favorin’ it over beer. She say beer preferences already dropped by six points! But hey, it ain’t all bad news. Spirits like tequila and bourbon are expected to thrive in this new era.
Now, let’s dive into the numbers, my dudes. Azer been lookin’ at the National Survey on Drug Use and Health, and she found out that over 47% of people who smoke cannabis be doin’ it almost every day. And get this: peeps who use cannabis are more likely to stop drinkin’ than those who never touched the green stuff. So it looks like weed is takin’ over, one puff at a time!
But it ain’t just about alcohol, my fam. People ain’t chuggin’ soda like they used to, and energy drinks be gettin’ some heat too. This means there’s new opportunities for growth and investin’. It’s a whole new world out there, my peeps!
So, what’s next for the cannabis industry? Azer be predictin’ an 11% growth in 2023, while alcohol is only expected to grow by a measly 3%. That’s a big gap, my bros! Azer think total U.S. cannabis sales could reach a mind-blowin’ $37 billion by 2027. That’s some serious green, man!
So there you have it, my peeps. The cannabis game be takin’ over and beatin’ alcohol in sales. Azer’s analysis be showin’ us a whole new world where weed is king. It’s time to embrace the green revolution and get on the cannabis train, my fam! Let’s blaze it up and make some green! Peace out!