Illinois' THC beverage boom may benefit from Trump's tariffs
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The endcap of an aisle at Binny's in the South Loop. Photo: Justin Kaufmann/Axios
As U.S. consumers continue to choose hemp-derived THC drinks over alcoholic alternatives, the Trump administration's tariffs may help the fledgling industry gain more footing in the marketplace.
Why it matters: THC drinks have become big business in Chicago, with local breweries transitioning from craft beer.
Driving the news: The Trump administration's tariffs on the European Union are expected to increase prices of imported wines, beer and hard liquor products.
- One of the goals is to force consumers back to American-made products, and THC-infused beverages are mainly produced domestically.
- Aluminum tariffs could impact THC drink prices, since most are canned beverages, but overall THC beverages could soon cost less than their beer or liquor counterparts.
What they're saying: "Consumers have increasingly turned to THC beverages over wine and other alcohol and we're seeing a clear shift in preferences driven by wellness, social experience, and now, economic factors," the THC-beverage company Cann's CEO Jake Bullock tells Axios.
- "With tariffs putting additional pressure on imported alcohol, we expect this trend to accelerate."
The intrigue: There has been a local movement to ban hemp-derived THC, which most seltzers and sodas are made from, but these beverages have been carved out of pending state legislation.
Zoom out: THC drinks could also get more exposure if nightclubs and bars are allowed to sell those products, which owners across the country are hoping will happen with patrons drinking less alcohol. In Illinois, that may have to wait for state regulation.
By the numbers: Illinois doesn't break down THC-infused beverage sales in its cannabis revenue reports, since it is not regulated under the state. The state set a record with over $2 billion in sales of regulated cannabis products in 2024.
- Nationally, the THC-infused beverage market has grown over 1,000% since 2020. In 2023, hemp-derived THC drink sales hit $2.8 billion. Industry insiders expect that number to multiply 10 times by 2033.
The bottom line: "Tariffs represent an opportunity for more mainstream consumers to experience cannabis-based alternatives to alcohol," Grownin's CEO Marcy Alspach tells Axios.
- "As more people embrace hemp products containing CBD and/or THC, I think we will see an increased market share in that category."