Looking at cannabis through the lens of big tobacco and the alcoholic beverage industry

Changing consumer preferences have put tobacco and alcohol on the defensive. Both of these industries are looking at cannabis as a way to boost very low growth rates, says Euromonitor.

Major tobacco and alcohol companies are targeting the cannabis market.
Major tobacco and alcohol companies are targeting the cannabis market.

While we might be looking far into the future, the potential the worldwide cannabis market offers certainly has not been overlooked by major tobacco and alcohol companies. In a recent webcast, “Cannabis Legalization — How it Will Disrupt the Future,” Euromonitor’s Spiros Malandrakis says predictions of sales and growth rates for cannabis are highly estimated and it’s important to remember this is an industry that is changing daily if not hourly. However, looking at the very low growth rates for sales of tobacco and alcohol compared with the potential of cannabis, it’s easy to see why companies like Constellation, Molson Coors and AB/InBev have made investments.

Tobacco sales ($839 billion in 2018) are expected to grow about 1.2 percent through 2023, alcoholic drinks ($774 billon) approximately 1.4 percent. In contrast, Malandrakis sees worldwide legal cannabis sales growing to $166 billion in 2025 from $12 billion in 2018.

According to Euromonitor, the trend is for other parts of the world to ease cannabis restrictions following a similar pattern of adoption:

  • From illegal to decriminalized or minor offense
  • Medical legal but recreational illegal
  • Medical legal and recreational decriminalized or minor offense
  • Recreational fully legal

For alcohol beverage companies, the easing of regulatory restrictions on cannabis globally is coupled with changing consumer drinking preferences, including a new trend for alcohol, “mindfulness in drinking.”  

There are now concert and well-being events targeting younger consumers that offer low or no alcohol consumption. Compared with many concert experiences where alcohol is expected, you will often find beer, wine and spirits event sponsors.

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