(Bloomberg) -- The youngest US consumers are trending toward weed over booze, reshaping the alcohol industry, according to a study. 

“Legal cannabis states are showing slower alcohol growth,” analyst Vivien Azer wrote in research released Friday by Cowen Inc., which found that more than 60% of consumers who use cannabis have cut back on drinking. The youngest consumers are driving the trend. 

In 2020, 79% of cannabis consumers age 18 to 25 also drank alcohol, down from 90% in 2002 -- sharper than the drop found among those 26 and up. Conversely, the percentage of drinkers who use cannabis in that age category grew to 32% from 25% during that time frame. 

Given that the largest public cannabis companies are trading at a discount to their peak levels in February 2021, Cowen reiterated its outperform ratings on many of the stocks. Its top pick remains Green Thumb Industries Inc. 

Cowen also noted that the trend could push alcohol companies to raise prices and focus more on spirits, which are more popular than beer or wine among cannabis users. 

The report was based on a consumer survey of 8 million people, Nielsen data on alcohol sales, and other studies on alcohol and tobacco use.

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