The growing concern over calories and hangovers is driving more millennials to replace alcohol with cannabis in their social life — a trend that pushes investors to increasingly eye the infused beverage industry as an opportunity.
A recent Monitoring the Future research found US millennials drink far less alcohol than previous generations: The percentage of college students who drink alcohol daily declined from 6.5% in 1980 to 2.2% in 2017.
So far, 11 states have legalized marijuana for recreational use with 33 states in total allowing it for medical purposes. Illinois became the latest state to legalize marijuana for recreational use after Governor JB Pritzker singed a bill into law last June.
Financial services company Cowen predicts the sales of recreational cannabis in the US will increase more than 700% from $6 billion in 2016 to $50 billion in 2026, prompting beverage companies of all sizes, such as Ceria, to tap into the space to grow their profits.