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Transform Dry January Interest in THC Drinks Into Year-Round Demand
Learn how THC Drinks became the Dry January beverage of choice and how brands can keep the momentum going year-round....
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From sugar-free energy drinks and low-ABV cocktails to functional sodas and zero-calorie cannabis seltzers, the boom in better-for-you beverages is apparent — and it’s not hard to see why. Consumers are becoming more focused on health and wellness, and it’s having a significant impact on their shopping preferences.
Innova Market Insights explains that “US consumer behavior aligns with global lifestyle shifts that began during the pandemic. After basic living essentials, US consumers prioritize spending on health and wellbeing.”¹ This makes diet a priority for health-conscious consumers, which inevitably impacts the food and beverage products they purchase.
While “wellness” can be interpreted in several ways, it’s clear that consumer wellness trends are reshaping the beverage industry. Learn how changing consumer preferences create opportunities for different beverage categories and how brands can meet demand for these better-for-you products.
While the pandemic may have fueled consumer interest in health and wellness over the last few years, that spark has transformed into a roaring bonfire that’ll keep sugar-free and low-calorie beverage manufacturers nice and warm in 2025. A recent report from Verified Market Research anticipates the sugar-free drink market will reach USD 15.9 billion by 2030, up from USD 10.5 billion in 2022.²
From carbonated soft drinks and juice to sports drinks and ready-to-drink teas, consumers today are less interested in “empty calories” and more interested in products that support their wellness goals. In addition to products that have fewer calories and less sugar, this makes functional beverages more appealing as well.
Some functional beverages are fortified with electrolytes, vitamins, probiotics, etc. Consumers are drawn to these products for their perceived health benefits. Even beverages fortified with additional protein benefit from this demand. In an interview with Beverage Industry, the director of insights and content at Glanbia Nutritionals noted that increased consumer interest in protein consumption has extended to several categories, from coffee and tea to energy drinks and more.³
Like other beverage categories, however, these drinks still have to taste good. Consumers may not want sugar, but they still want their beverages to taste sweet. They want functional ingredients that provide additional benefits outside of hydration but don’t like the off-flavors that often accompany them. This is particularly evident in the recent boom in flavored sparkling water.
In a 2024 executive summary report from Mintel, food and drink analyst Julie Mills explains that nutrition and convenience fuel the popularity of bottled water. She also emphasized that category innovation in flavor and “health enhancements” are impactful.⁴ Popular brands like La Croix and Waterloo are big draws for those who want sugar-free and calorie-free drinks, and they regularly launch new flavors consumers can get excited about.
If manufacturers want to appeal to health-conscious shoppers, they’ll need to formulate great-tasting beverages with none of the nutrition and/or ingredient red flags consumers wish to avoid.
Speaking of ingredients consumers wish to avoid, we can’t discuss wellness without mentioning the clean label trend. The combination of wellness-focused shopping and a greater desire for ingredient transparency has created a growing number of consumers who make purchasing decisions based on the perceived cleanliness of ingredients.
Phrases like “no artificial ingredients” and “no high-fructose corn syrup” are often viewed favorably. In contrast, ingredients and additives that are perceived to be unnatural, heavily refined, or artificial are undesirable.
The biggest issue is that a “clean label” is subjective. Unlike GMO-Free or Certified-Organic, a “clean label” is not an official designation and has no legal definition. It can also be challenging to formulate a beverage that aligns with ever-shifting consumer perceptions of “natural” or “healthy.” That doesn’t mean it’s impossible, though.
Advancements in beverage flavoring technology can give drinks delicious flavors and aromas without making labels look like a chemistry textbook. Global Market Insights explained that the beverage industry led the clean label market in 2024 and that growth is expected to continue, “Clean-label ingredients are used in many beverages, such as juices, soft drinks, teas, and functional drinks. More consumers are choosing healthier beverages, which increases the demand for natural flavors, colors, and sweeteners.”⁵
Great-tasting beverages that use “natural flavors” will not only appeal to these consumers, but they’ll help products stand out among increasing competition.
Consumer wellness trends have impacted every beverage category, and alcoholic beverages are no different. For sober-curious consumers looking to reduce or eliminate their alcohol consumption, NA beverages and low-ABV drinks provide a better-for-you alternative. This can include RTD cocktails, beer, and still-evolving NA categories like hop water and NA beers.
In the years before 2016, spiked seltzers and even NA seltzers like LaCroix had been growing in demand. However, when White Claw hit shelves, it was a game changer. Even today, these ready to drink bevs hit all the major features consumers are often looking for — big, delicious flavors with low calories, low price, and low ABV. However, for consumers choosing to go completely sans alcohol, there are more options than ever before.
Within the last several years, non alcoholic beers have started chipping away at traditional beer sales. Consumers vary in age, but Brian Sudano, CEO and president of S&D Insights, explained in an interview that demand comes from “younger consumers that generally don’t drink alcohol, middle age people that are pursuing a healthier lifestyle, and those that engage in other forms of adult products that do not fit with alcoholic beverages.”⁶
Gen Z consumers of the drinking age, and even those who are underage, are reaching for non-alcoholic beverage options. Mintel explained that “Gen Z is especially interested in both alcohol-free options and cocktails, creating space for no-ABV products to step in. A variety of options exist, but need to amplify their presence, especially in spaces where Gen Z is looking to drink without drinking.”⁷
The growing demand for hop water is a reflection of this trend. These non-alcoholic seltzers are flavored with hops, and some breweries are getting creative by infusing them with other innovative flavors. They’re also usually sugar-free, calorie-free, and gluten-free, which gives them a better-for-you advantage over NA beers.
A combination of increased legalization, product innovation, and changing consumer drinking habits has led to a big boom in cannabis beverages. According to recent market research, “The global market for Cannabis Beverages, estimated at US$1.2 Billion in the year 2023, is projected to reach a revised size of US$3.8 Billion by 2030.”⁸
From high-strength THC drinks to low-dose CBD drinks, these beverages offer several practical benefits over other cannabis consumption methods and even over alcoholic beverages. For consumers focused on wellness, these products can be very appealing.
THC drinks let consumers ingest cannabis without smoking or needing to eat some of the more traditional edible options like gummies or cookies. For those who prefer not to smoke or who don’t wish to consume foods they view as “unhealthy,” cannabis beverages are a practical alternative. The dosing in each drink is straightforward, ready-to-drink beverages are convenient, etc.
They’re also a popular alternative for those wishing to reduce or eliminate their alcohol consumption. People who still want a “social lubricant” at parties after cutting alcohol can easily sip on a THC drink. For consumers who don’t want to step outside to smoke, cannabis beverages are a convenient solution.
With more competition in this beverage category, brands must distinguish their products with high-quality cannabis extracts and innovative flavors. Whether they lean into high-intensity fruit or cultivar-specific cannabis, one-of-a-kind flavors and aromas can help create stand-out products that meet consumer demand.
We provide novel solutions for beverage manufacturers looking to streamline, innovate, and gain a competitive edge. With our knowledge, technology, and extensive resources, we’ll help you formulate the best-tasting beverages that meet evolving consumer preferences.
We also recognize that a successful, consumer-friendly product sometimes needs a custom flavor that has never been seen before. Want to complement the natural flavors of cannabis with the tropical, dank aroma of a hop like Nectaron®? Do your customers want “sweet” flavors without added calories or sugar?
Contact us today, and let’s craft the best-tasting beverages with customized flavors your customers will crave.
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