As more Americans embrace sobriety or explore alcohol alternatives, a growing number are turning to THC-infused beverages. In South Florida, the trend has gained momentum, but a proposed regulatory change could soon reshape the market.
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At Funky Buddha Brewery in Oakland Park, known for its craft beer since opening in 2013, a new product line has emerged: THC seltzers.
“I would say about six months ago we launched the product,” said co-founder Ryan Sentz. The beverages contain measured doses of THC, the psychoactive compound found in cannabis, offering consumers an alternative to alcohol.
Sentz said the decision to expand into THC drinks was driven by demand.
“We were just paying attention and seeing that this is what the consumer wanted,” he said. “It was growing, and it was something that we felt comfortable that we could do and do it well.”
However, the future of those products remains uncertain.
Under the 2018 federal Farm Bill, hemp-derived THC products gained a foothold in the market, provided they contained no more than 0.3% THC by weight, excluding water. That framework allowed THC beverages to be widely produced and sold.
A new provision, set to take effect in November, would change how THC limits are measured — shifting from a percentage-based threshold to a strict milligram cap. Under the proposal, products would be limited to 0.4 milligrams of THC per serving.
“To put it into perspective, that’s an extremely small dose,” said Imran Ahmad, an associate professor at Florida International University. “It’s not psychoactive at that level.”
Most THC beverages on the market — including those produced by Funky Buddha — contain between 5 and 10 milligrams per serving, far exceeding the proposed cap.
If the rule takes effect, Sentz said the company would likely have to stop selling the drinks.
“It’ll certainly take away an avenue that we’re doing,” Sentz said. “Not only for what we’re producing for ourselves, but we are co-packing a lot of people.”
Inside its Oakland Park facility, Funky Buddha also manufactures THC beverages for other South Florida brands, including Mellow Fellow and Miami-based Amigos. As traditional beer sales have slowed, Sentz said the THC segment has helped offset declines.
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“I think the stigma around THC has changed a lot from where it used to be,” he said. “People are trying to be a little more health conscious. Newer generations aren’t drinking as much.”
Research supports that shift. According to Circana, more than half of Gen Z and millennial consumers are reducing alcohol consumption or avoiding it altogether.
Ahmad’s own research at Florida International University found that 47% of respondents said they would drink less alcohol if THC beverages were available in bars and restaurants.
“You still want to go out and have a social life,” Ahmad said. “This has filled that gap.”
He added that THC beverages could reduce alcohol consumption by as much as 30%, with cannabis-based alternatives replacing some traditional drinking habits.
The global market reflects that growth. THC beverage sales reached about $1 billion in 2025 and are projected to surpass $3.6 billion by 2030.
For Funky Buddha, the category represents a potentially significant share of future revenue.
“My guess is, in five years, I would not be shocked to see THC being 25 to 50% of our business,” Sentz said.
Still, uncertainty looms as industry groups and businesses push back against the proposed rule change. Ahmad said the impact could be especially severe for bars, restaurants and beverage makers, as consumers may not be interested in products with such low THC content.
In the meantime, companies like Funky Buddha are exploring new formulations and alternatives, preparing for what could be the next shift in the fast-evolving beverage market.
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