Yo, listen up, fam! Check this out: a big-shot investment bank is sayin’ that weed is givin’ alcohol a run for its money. They predict that in the next five years, around 20 million more people will be choosin’ to smoke that good green instead of takin’ a swig of booze. And get this, they think that marijuana sales are gonna hit a whopping $37 billion by 2027 as more states legalize it. That’s some serious cash, man!
According to TD Cowen, these marijuana sales reached $29 billion in 2023, which is about 11 percent of what the alcohol industry raked in. Can you believe that? Just five years ago, it was only four percent! And they’re sayin’ that weed is gonna keep growin’, expectin’ a seven percent increase every year for the next five years.
But wait, there’s more! This report called “Cannabis Beats Booze” says that over the next five years, about 18 million more people will be smokin’ weed while alcohol loses two million customers. People are diggin’ cannabis more and more and cuttin’ back on their alcohol intake. It’s a trend, bro!
Vivien Azer, the head honcho behind this analysis, says this report is backin’ up what they’ve been sayin’ for seven years. Weed is gonna take over the alcohol game, it’s only a matter of time. She did find it a bit surprisin’, though, to see that alcohol sales in legal marijuana states are takin’ an even bigger hit than expected.
Now, don’t get me wrong. Weed sales are still just a small fraction of the massive alcohol market. But analysts are sayin’ that there’s a risk for booze because people are replacin’ it with bud. Especially young folks, they’re choosin’ to light up instead of gettin’ wasted. TD Cowen’s report found that more than two-thirds of cannabis users are cuttin’ back on alcohol. It’s a whole new world, man.
And get this: the report says that evolving state marijuana markets and new laws in states like Minnesota and Ohio are gonna bring in a mind-blowin’ $37 billion in sales by 2027. That’s a lotta dough, my friend. In the short-term, the alcohol industry might not feel the impact too much. Youngsters are slowin’ down on their drinkin’ anyway. But in the long run, some brands might struggle to keep up with the competition.
The report says that alcohol is gonna keep underperformin’ in legal weed states, and beer sales are at the highest risk. People in cannabis states don’t drink as much because they’re gettin’ lit with their bud. It’s changin’ the game, man.
Now, you might be wonderin’, will big alcohol companies jump on the weed train? Well, according to Azer, they ain’t gonna do much until there’s some changes in the law at the federal level. So don’t hold your breath, fam.
But this report ain’t just talkin’ bout the U.S., oh no! They also looked at Canada, where weed was legalized nationwide in 2018. And guess what? Canadian cannabis sales are now a whopping 20 percent of the size of the alcohol market. That’s some serious competition right there.
And this ain’t just some made-up stuff, bro. There’s research to back it up. A study last month found that young adults in California are reducin’ their alcohol and cigarette use after weed became legal. And a Gallup survey showed that Americans think weed is less harmful than alcohol and cigarettes. We’re seein’ a shift in perception, man.
So, to sum it all up: weed is takin’ over. The investment bank predicts that millions more people will choose to smoke instead of drink, and sales are gonna skyrocket to $37 billion by 2027. It’s a whole new era, my friend. Weed is beatin’ booze in this epic showdown.
Stay lit, stay high, and enjoy the ride!
Written by Dan
