Cannabis Surge Shakes Alcohol Industry as Drinking Rates Hit 30-Year Low
A new market report from Constellation Brands has revealed a dramatic shift in consumer behavior that could reshape the alcohol industry. The liquor and beer giant projects steep declines in alcohol sales over the next year — a clear reflection of the nationwide cannabis surge transforming social and recreational habits.
According to Constellation’s analysis, beer sales are expected to drop by $185 million, while wine and spirits could fall by another $253 million. This downturn coincides with three major societal changes: the denormalization of drinking, the normalization of non-drinking lifestyles, and the growing preference for cannabis products. Together, these forces have fueled a powerful cannabis surge that is steadily overtaking alcohol in popularity, particularly among younger consumers.
Recent studies show that only 54% of Americans reported using alcohol in 2025, down from 67% in 2022. Meanwhile, the cannabis surge continues to accelerate as more people embrace legal marijuana products for recreation and wellness. The National Library of Medicine found that adolescents and young adults are drinking less, getting intoxicated less frequently, and often choosing cannabis instead signaling a profound cultural shift.
Wicked Dispensary’s General Manager, Adam Ciluffo, attributes the cannabis surge to growing health and environmental awareness. “There’s a big push toward health and wellness,” Ciluffo explained. “Cannabis is a natural plant, and many people see it as better for both personal health and the planet.”
The cannabis surge is also supported by innovation in product offerings. From edibles to beverages, the cannabis industry has evolved far beyond traditional smoking methods. Ciluffo noted that cannabis drinks are now among their top-selling items, giving customers a social experience similar to having a beer without the negative effects associated with alcohol. “People like having something in their hand,” he said. “Cannabis beverages let them feel included socially, even if they’re not drinking alcohol.”
The last time alcohol consumption dropped to current levels was in 1996, but this time, the cannabis surge shows no signs of slowing. Experts believe this trend will continue as legalization expands and cultural acceptance grows. For alcohol companies, adapting to the cannabis surge could be the key to future survival perhaps even by entering the cannabis market themselves.
In short, the cannabis surge isn’t just a passing trend; it’s a generational shift redefining what it means to relax, socialize, and stay well in modern America.
