THC Seltzers Market Size, Share & Trends Analysis Report By THC Content (1-2.5 mg THC, 2.5-5 mg THC, Ground, RTD), By Flavor (Flavored, Unflavored), By Distribution Channel (Off-trade, On-trade), By Region, And Segment Forecasts, 2024 - 2030

THC Seltzers Market Size & Trends

The global THC seltzers market size was valued at USD 344.7 million in 2023 and is expected to grow at a CAGR of 34.1% from 2024 to 2030. As more jurisdictions decriminalize and regulate the sale and consumption of cannabis, the market for THC-infused products, including seltzers, expands significantly. This regulatory shift not only opens new markets but also normalizes cannabis consumption, reducing stigma and increasing consumer acceptance. Another critical driver is the growing consumer preference for healthier, low-calorie beverage alternatives. Traditional alcoholic beverages and sugary sodas are being shunned by health-conscious consumers who are increasingly seeking out drinks that align with their lifestyle choices. THC seltzers, which are typically low in calories and free from alcohol and added sugars, provide a healthier alternative that appeals to this demographic.

Technological advancements in cannabis extraction and infusion processes also play a crucial role in driving the THC seltzer market. Innovations in nanoemulsion technology, for instance, have improved the solubility and bioavailability of THC in water-based beverages, ensuring consistent dosing and a more predictable onset of effects. These advancements make THC seltzers more appealing to both new and experienced consumers who value reliability and consistency in their cannabis products. Additionally, the increasing disposable income and changing social attitudes toward recreational cannabis use are significant drivers. As more people become comfortable with the idea of consuming cannabis socially, THC seltzers emerge as a convenient and socially acceptable option, similar to how people traditionally consume beer or wine in social settings.

A notable trend in the THC seltzer market is the emphasis on flavor innovation. Brands are continuously experimenting with a wide range of flavors to cater to diverse consumer preferences, from classic citrus and berry flavors to more exotic combinations like hibiscus and ginger. This focus on flavor variety not only attracts a broader audience but also keeps the product offerings fresh and exciting, encouraging repeat purchases. Another significant trend is the rise of microdosing. Consumers are increasingly interested in consuming small, controlled amounts of THC to enjoy the benefits without the intense psychoactive effects. THC seltzers, with their precise dosing capabilities, provide an excellent medium for microdosing, making them appealing to both new users and those who prefer milder effects.

THC Content Insights

The 5+ mg THC seltzers accounted for a revenue share of 70.1% in 2023 due to consumer preference for higher potency products. Consumers who have some experience with THC and are looking for a noticeable psychoactive effect tend to prefer beverages that contain a higher dosage. A seltzer with 5 mg or more of THC provides a balance between achieving the desired effects without needing to consume multiple servings. This level of potency is appealing to those who want a strong but manageable experience, making it a popular choice in the market.

The 2.5-5 mg THC seltzers segment is expected to grow at a CAGR of 33.7% from 2024 to 2030. The 2.5-5 mg THC seltzers are growing at a higher pace largely because they appeal to a broader consumer base, including both novice and experienced cannabis users. For new users, lower-dose options provide a more approachable entry point into the world of THC-infused beverages. They offer a manageable experience that allows consumers to explore the effects of THC without the risk of overwhelming psychoactivity. For experienced users, these seltzers offer a way to enjoy THC in a more controlled and subtle manner, suitable for daytime use or social occasions where a lighter touch is preferred.

Flavor Insights

The flavored THC seltzers segment accounted for a revenue share of 84.1% in 2023. Traditional cannabis products, such as edibles and tinctures, often have a strong, distinctive taste that not all consumers enjoy. Flavored THC seltzers, on the other hand, offer a pleasant and refreshing taste experience that can mask the earthy tones of cannabis. With a wide range of flavors available-from citrus and berry to more exotic options like hibiscus and ginger-consumers can find a flavor that suits their palate, making these beverages more appealing and enjoyable.

The unflavored THC seltzers market is expected to grow at a CAGR of 33.6% from 2024 to 2030. For many cannabis enthusiasts and purists, the appeal lies in experiencing the effects of THC without the interference of added flavors. This allows consumers to appreciate the natural taste and effect of the cannabis extract. Unflavored options cater to those who are more focused on the therapeutic or psychoactive properties of THC rather than the taste, ensuring they receive the full, unaltered benefits.

Distribution Channel Insights

Sales of THC seltzers through off-trade channels accounted for a revenue share of 70.6% in 2023. Off-trade channels, such as retail stores, supermarkets, and online platforms, dominate the sales of THC seltzers due to their accessibility and convenience. Consumers prefer the ability to purchase these products during their regular shopping trips, adding THC seltzers to their cart alongside other groceries and household items. The wide distribution network of retail stores ensures that THC seltzers are available in numerous locations, making it easy for consumers to access their preferred brands without having to visit specialized stores.

The demand for THC seltzers through on-trade channels is expected to grow with a CAGR of 37.6% from 2024 to 2030. Online retailers often offer competitive pricing and exclusive promotions that are not available in physical stores. Discounts, bundle deals, and loyalty programs can incentivize consumers to purchase THC seltzers online. Additionally, online platforms frequently provide detailed THC content descriptions, reviews, and ratings, helping consumers make informed decisions and feel confident in their purchases.

Regional Insights

North America THC seltzers market accounted for a revenue share of 86.6% in 2023. In North America, there is a significant trend toward health and wellness, and THC seltzers are aligning with this movement. Consumers are increasingly seeking out beverages that offer the benefits of cannabis without the negative health impacts associated with smoking or high-calorie edibles. THC seltzers, often marketed as low-calorie and free from artificial additives, are seen as a healthier alternative. This trend is particularly strong among younger, health-conscious consumers who are looking for functional beverages that fit into their active lifestyles.

U.S. THC Seltzers Market Trends

The THC seltzers market in the U.S. is expected to grow at a CAGR of 29.3% from 2024 to 2030. Flavor innovation is a key trend driving the North American THC seltzer market. Brands are continually experimenting with new and unique flavor combinations to attract and retain customers. From traditional flavors like lemon and lime to more exotic options such as hibiscus, ginger, and tropical blends, the variety available caters to diverse consumer tastes. This ongoing innovation keeps the product offerings fresh and exciting, appealing to consumers who are always looking for new experiences.

Europe THC Seltzers Market Trends

The THC seltzers market in Europe is expected to grow at a CAGR of 57.3% from 2024 to 2030. As legalization expands and social acceptance grows, there is an increasing trend toward social consumption venues. Bars, cafes, and lounges that allow the consumption of THC-infused beverages are becoming more popular in European countries. These venues provide a social setting where consumers can enjoy THC seltzers in a communal atmosphere, similar to how they might enjoy alcoholic beverages. This trend not only normalizes cannabis consumption but also opens up new opportunities for product sampling and brand building.

Key THC Seltzers Company Insights

The global THC seltzers market is characterized by the presence of numerous well-established players such as Cann Social Tonics, Pabst Blue Ribbon (PBR) High Seltzer, Crescent Distributions, LLC, Power Biopharms, The Hi Collection, WYNK, Sacred Bloom, Cheech & Chong’s Global Holdings, 8TH Wonder, Cantrip and Others.

Recent Developments

• In March 2024, the cannabis market saw a new entrant in the THC-infused beverage sector. Ounce of Hope, a prominent cannabis brand, expanded its product portfolio by introducing its own range of THC-infused seltzers. The company debuted two distinct flavors, Berry High & Peach Buzz.

THC Seltzers Market Report Scope

Global THC Seltzers Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global THC seltzers market report on the basis of THC content, flavor, distribution channel, and region.

• THC Content Outlook (Revenue, USD Million, 2018 - 2030)

  • 1-2.5 mg THC

  • 2.5-5 mg THC

  • 5+ mg THC

• Flavor Outlook (Revenue, USD Million, 2018 - 2030)

  • Unflavored

  • Flavored

    • Citrus

    • Berry

    • Tropical

    • Herbal

    • Others

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • On-trade

  • Off-trade

    • Hypermarkets & Supermarkets

    • Specialty Stores

    • Online

    • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • UK

  • Germany

  • Netherlands

• Rest of the World