Surprising Number of Millennials Ready to Trade Alcohol for Pot

SAN DIEGO -- A new study shows more than 50% of millennial consumers would entirely substitute cannabis for alcohol if recreational sales of marijuana were legal and the product readily available, casting a shadow on the future sales of beer, wine and spirits.

OutCo, a San Diego-based cannabis company, partnered with Monocle Research to survey consumers in California about their use of marijuana and its effect on the alcohol industry. The study revealed a sea change is coming, with California millennials saying no to alcohol and yes to marijuana, according to the company.

Here's a look at details of the study ...

"We found that for millennials, the choice between the two main recreational substances, alcohol and tobacco, has always been an easy one," said OutCo CEO Lincoln Fish. "Growing up with anti-tobacco messaging, the smoking rate for 18- to 29-year-olds in the U.S. has dropped by 22% over the past decade, leaving alcohol as the substance of choice. But we are already seeing a decrease in alcohol sales, which means that cannabis is poised to be the new recreational substance of choice for many millennials and beyond."

Millennials will be more open to diversity in their consumption of recreational substances than older generations, according to the report, with 51% of them substituting cannabis for alcohol altogether. The study further shows that one in five Generation Xers will be substituting marijuana for alcohol, as will 8% of baby boomers.

Report findings include:

1. Beer was the most popular substitution, with 34% of millennials saying they will opt for cannabis over beer.
2. Eighteen percent of millennials will substitute cannabis for wine.
3. Fourteen percent of the millennial population will substitute cannabis for spirits.

Asked why they were choosing to replace alcohol with marijuana, consumers' responses were clustered around a few particular themes, which included perception of safety, cost and health.

In regard to safety, many expressed the fear of making poor decisions when consuming alcohol, which included driving over the legal blood-alcohol-content limit. Cost also came into play, with many saying their overall spend on alcohol outstrips that of cannabis. Finally, health was stated as a factor when substituting marijuana for alcohol.

Participants also said that the effects of a hangover from alcohol lasted the entire next day, while high volumes of cannabis usage had no noticeable lasting effects.

Twenty-six states and the District of Columbia have laws broadly legalizing marijuana in some form. Eight, including Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon and Washington, have legalized recreational use of marijuana.

Map from Governing.com.