The market for THC beverages is hitting a new high

Wait — isn’t cannabis illegal in Wisconsin?

Yes. Well, sort of. It’s complicated.

Hemp-derived Delta 9 THC compounds been legal across the United States in small doses since 2018. (Stronger variations, derived from higher-potency marijuana plants, are regulated on a state-by-state basis.) In the years since, the market for Delta 9 products has surged, particularly in states like Wisconsin where marijuana-based products are still banned. Dispensaries have been selling edibles, joints and loose leaf Delta 9 products since the law passed, but in the past few years, one product has brought THC onto grocery store shelves and restaurant menus: THC beverages.

Unlike other methods of consuming THC, these products encourage slow, low-dose consumption, making them more approachable. And unlike alcoholic beverages, these drinks won’t leave you with a lingering headache the next morning.

As consumer demand for THC beverages has risen, so has the number of businesses offering these non-traditional drinks. In Madison, more than 20 grocery stores and 30 bars sell either canned or mixed THC drinks.

Alla Tsypin, the co-founder of RA!, a hemp-focused company, compares the growing industry to "a tidal wave." The entire beverage industry, from distributors to bars and restaurants, faces a choice: Enter the THC beverage market or risk getting left behind, she says.

RA! was founded by Tsypin and Richard Bowman in 2022. About a year later, when a water-soluble form of THC first became available, adding beverages to their offerings was "a no-brainer," according to the co-founders and co-owners. The market for hemp-derived beverages is projected to balloon to $4.1 billion by 2028, up 1,615% from its $239 million valuation in 2023.

Part of THC beverages' popularity may have to do with the rise of the sober-curious movement, in which adults adopt low- or no-alcohol lifestyles to improve their physical health and mindfulness. Delta 9 drinks offer a way to socialize and relax without the complications that may come with alcohol, says Kayla Fannan, the director of sales at Turning Leaf, a Minnesota-based dispensary with a store in Madison. Offering more non-alcoholic alternatives — particularly ones that still give a buzz — means more people have the option to sit, sip and relax at the end of a long day.

“There’s nothing easier than cracking open a can and enjoying it to wind down at night,” she says. The beverages are also more easily absorbed than edibles and other methods of consuming THC, meaning the effect is more immediate.

Tina Noel, the co-owner of RA!, says that she sees busy professionals gravitating towards THC drinks, too, since the chemicals from these Delta 9 beverages tend to exit the body quickly, without adverse effects like dehydration, headaches and grogginess. For people at a company dinner, or who simply want to grab post-work drinks on a weeknight, these drinks promise the same social lubricant of alcohol without sacrificing productivity the next day.

Companies selling Delta 9 products often cater to health-oriented consumers, too. In addition to its original THC lemonade, RA! offers two Delta 9 beverages infused with herbs (like lemon verbena and rosehip) meant to relax the mind, boost bodily functioning and more.

“People are choosing healthier choices,” says Tina Noel, the co-owner of RA! “They're being more conscious with their decisions, and what they put in their body needs to be less toxic.”

Local restaurants and bars are getting in on the action. Many Madison bars and restaurants now offer canned Delta 9 beverages — you can find RA! cans at The Deliciouser and Lola's Hi/Lo Lounge, among others — and several spots like Karben4 (3698 Kinsman Blvd.) and Forward Craft & Coffee (2166 Atwood Ave.) have THC-infused beverages on tap. Bowman says that many of these places were initially reluctant to sell the beverages, worried that offering THC drinks would divert sales from their alcohol products. Instead, the wider menu offerings seem to have expanded their market.

“For every person that's drinking, there's someone else who isn't,” he says. “We're bringing that revenue stream.”

As THC-based products hit supermarket shelves and cocktail menus alike, the RA! team says the stigma around cannabis is eroding.

“We're trying to normalize it, to get people out in public and have them feel comfortable, to get rid of the stigma behind THC,” Bowman says. “It is a beautiful way to relax without the negative side effects, and it's gonna draw a lot of people out of their homes and back into the restaurants and in different establishments.”

Gabby Shell is an editorial intern at Madison Magazine.