Disclaimer: This article is not meant to provide legal advice. This is a rapidly changing environment with a vast array of state and local laws.
A special report from Carbonate:
Consumer tastes are shifting fast. Alcohol sales are declining, especially among younger adults who are choosing to drink less—or not at all.
Instead, they’re reaching for drinks that offer something functional: energy, calm, focus, or a light buzz. Enter hemp-derived THC beverages.
Thanks to the 2018 Farm Bill, hemp-derived THC drinks are federally legal. That means you don’t need a dispensary license to sell them—if your state allows it.
While laws still vary widely by location, the door is now open for many restaurants, bars, and entertainment venues to offer these products as part of their beverage program. (States with pre-existing laws regarding the sale of marijuana may have other jurisdiction in place, it is essential to do due diligence!).
So, what does this mean for food service? Simply put: a major new revenue stream.
In just one year, legal sales of hemp-derived THC beverages jumped from $102 million in 2023 to $382 million in 2024. Experts predict that number will double again by 2029 (Brightfield Group). While that’s still small compared to beer or wine, the growth is significant—and points to big potential, especially in hospitality.
In just two years, Minnesota went from zero to over 4,000 businesses legally selling THC drinks, including restaurants, hotels, and even sports stadiums. The state now represents nearly $200 million of the national market. While Minnesota is leading the way, other states are catching on.
Bars are offering THC drinks next to beer and cocktails. Breweries are making THC seltzers. And restaurants are experimenting with drinks that provide a buzz without the booze—and offering guests other non-alcoholic food-pairing opportunities.
Where legal, these beverages are quickly becoming a popular, normalized part of the drinking landscape.
Why Consumers Are Interested
Younger consumers, especially Gen Z, are choosing to drink less alcohol. They’re also more likely to see cannabis as a safer or healthier alternative.
In fact, nearly 70% of Gen Z say they prefer cannabis products over alcoholic drinks (CBS News). It’s not just Gen Z; recent surveys show that 40% of Americans are actively trying to reduce their alcohol consumption, representing a dramatic shift in drinking culture (independent studies from both Ipsos 2025 and NC Solutions 2024).
Studies show that people who start drinking THC beverages often cut back on alcohol. Today, there are more daily cannabis users in the U.S. than daily drinkers (Carnegie Mellon, 2024).
For many people, THC drinks offer the social ritual of drinking without the hangover, and without the perceived health detriments. That’s a powerful draw—and a big opportunity for operators to capture new business.
What’s on the Menu?
The most common THC drinks on the market are RTD soda and seltzer alternatives. They’re convenient, familiar, and easy to serve. That makes them a great fit for grab-and-go concepts, event venues, convenience stores, and casual or quick-service restaurants.
Brands like Mary Jones (from Jones Soda) and Pabst Labs (from Pabst Blue Ribbon) are producing drinks in classic flavors like cola, lemonade, and root beer—with THC added. Others, like High 9ine and BRĒZ, include extra ingredients like caffeine, electrolytes, or adaptogens to offer a “functional” edge.
For bars and restaurants looking to create their own signature THC drinks, there are now THC “spirit” alternatives—bottled products like Pamos and Artet.
These can be used much like non-alcoholic spirits, allowing bartenders to craft unique THC cocktails. These products often contain lower sugar, natural flavors, and bitter notes, making them food-friendly.
Keep in mind: when using large-format THC products (like spirits), careful measurement and staff training are essential to ensure accurate dosing and safe service.
Serve Responsibly
Just like with alcohol, serving THC beverages comes with responsibility. Operators must follow all state and local rules—and ensure staff are properly trained.
THC takes longer to kick in than alcohol, often 20 to 30 minutes. That means guests can accidentally over-consume if they’re not properly guided.
Servers should understand how to talk to guests about potency, help guests pace themselves, and answer questions confidently.
THC content must be clearly listed on menus and labels so guests know exactly what they are getting and how strong it is. With thoughtful service, operators can help guests have a safe and enjoyable experience.
Looking Ahead
The future of THC in hospitality is just beginning. Where regulations allow, expect to see even more innovation—infused N/A beverages, wellness shots, THC desserts, and more.
For food service businesses looking to stay ahead of the curve, this is the moment to explore how THC beverages can fit into your offering. These products appeal to a growing segment of health-minded, sober-curious consumers and can provide a profitable new revenue stream.
With clear communication, solid training, and a well-executed program, operators can successfully introduce THC beverages—and position themselves at the forefront of a rapidly growing market.
About Carbonate: Carbonate is a creative agency that builds, reinvigorates, and grows brands and hospitality concepts.
Specializing in food, beverage, restaurants, hotels, and hospitality tech/B2B, Carbonate’s services include brand strategy, identity development, trend insights, design, and integrated brand communications.
Prior to launching as an independent company, Carbonate was a division of San Francisco-based af&co. Together af&co. and Carbonate produce an annual Hospitality Trends Report, with insights consistently cited by outlets including The New York Times, Forbes, and more.
Carbonate also produces Insight Out, a weekly insights publication dedicated to emerging hospitality & branding trends. Carbonate was ranked #45 on the 2025 Inc. Regionals: Midwest list—the most prestigious ranking of the fastest-growing private companies in the Midwest.
Follow along @carbonategroup. Carbonate is not affiliated with any THC brands, products or distributors.
