Article by Merry Jane
The brewing industry could suffer the loss of more than $2 billion in retail sales, if the legalization of marijuana continues to become more widespread across the United States.
At least this is the consensus of the latest market analysis by Cannabiz Consumer Group (CCG).
Researchers at CCG found that 27 percent of the beer drinkers out there have either already opted for cannabis over booze or are planning to do so in the not so distant future. This switching of inebriants, the study shows, could eventually cause beer revenues to drop by more than 7 percent. Manufacturers of hard liquor and wine would of course also take a hit.
However, researchers have also said that people would likely only switch from booze to legal marijuana until the “novelty” of legalization runs its course. After all, it is difficult to compare an industry that is only permitted to operate in a handful of legal states to one that is prevalent in nearly every restaurant, watering hole and sporting venue in the nation.
In truth, the cannabis industry seems to have a long way to go before it truly becomes a substantial threat to the sale of alcohol. The booze industry in the United States alone generates more than $400 billion in total economic activity and it has created nearly 4 million jobs – making it one of the largest contributors to the U.S. economy.
The latest predictions show the cannabis industry could be worth $25 billion by 2020 – a far cry from a threat.