Cannabis beverages are non-alcoholic drinks that contain tetrahydrocannabinol (THC) or cannabidiol (CBD), the main psychoactive and non-psychoactive compounds in cannabis. Cannabis infused drinks offer an alternative option for recreational or medical cannabis consumption over smoking. They provide health benefits such as relief from insomnia, anxiety, chronic pain etc. without any tobacco or carbon monoxide.
The global cannabis beverage market is estimated to be valued at US$ 630.64 Bn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the cannabis beverage market are IBM Corporation, Microsoft Corporation, SAP SE, and Oracle Corporation. These players are investing heavily in R&D to develop advanced technologies for extraction of cannabinoids from hemp and cannabis plants. Various beverage producers are also partnering with leading cannabis companies to launch diverse product ranges. For instance, Constellation Brands invested US$ 4 billion in Canopy Growth Corporation to introduce cannabis-infused drinks.
The demand for cannabis drinks is increasing rapidly driven by rising awareness about medicinal properties of cannabis. Cannabis beverages are considered a healthier alternative to alcohol by health conscious consumers. Various studies also claim benefits of CBD and THC in conditions like anxiety, epilepsy, inflammation etc.
Technological advancements are playing a key role in development of this industry. extraction technologies like supercritical carbon dioxide extraction allow efficient, clean extraction of cannabinoids. This has boosted commercial production capabilities. Companies are also experimenting with nano-encapsulation technology to improve bioavailability and timed release of cannabinoids.
Market Trends
Increasing product innovation - Companies are developing various innovative product formats like sodas, teas, juices and smoothies with customized cannabinoid formulations and experiences. Functional beverages with focus on health and wellness is a key trend.
Standardization of regulations - With increasing legalization, governments are working to establish standards for safety, labeling and advertising. This will help boost consumer confidence and Global Cannabis Beverage Market Growth.
Market Opportunities
Untapped international markets - Many countries still prohibit cannabis use offering potential for market expansion as regulations evolve.
Wellness segment growth - Demand for all natural health drinks is on the rise. Cannabis beverages are well positioned to tap into this fast growing wellness domain.
Impact of COVID-19 on Cannabis Beverage Market Growth
The coronavirus pandemic has significantly impacted the growth of the cannabis beverage market globally. During the pre-COVID times, the market was growing at a steady pace owing to the growing legalization of cannabis for medical and recreational purposes across various regions. However, during the initial phases of the pandemic in 2020, the market growth was negatively impacted due to lockdowns and supply chain disruptions. Production facilities and dispensaries faced shutdowns, restricting the supply of cannabis beverages in the market. This led to higher prices and reduced availability of products during the initial period.
With relaxation in restrictions in 2021, the market is recovering steadily. The demand for cannabis beverages has even increased post-COVID as people suffering from anxiety, depression and other mental health issues are increasingly adopting cannabis products to cope with adversities caused due to the pandemic. Companies are focusing on innovative product offerings to tap into this rising demand. For instance, new beverage products containing combinations of THC, CBD and other cannabinoids are being introduced to attract new users and boost immunity. The growing legalization of cannabis across various states is also fueling the post-COVID recovery. However, adherence to safety and social distancing protocols continues to impact production volumes. Sustainable supply chain management needs to be prioritized to cater to rising demand levels.
Value Concentration in North American and European Regions
In terms of value, the cannabis beverage market remains highly concentrated in the North American and European regions. The major value share is accounted by the U.S. and Canada where cannabis for both medical and recreational use has been legalized at the federal level. Presence of major market players and growing product innovation is boosting the market growth. Countries like Germany, Italy, France are also emerging as high potential markets in Europe owing to rising medical cannabis adoption.
Fastest Growing Region - Latin America
Latin American countries like Mexico, Colombia, Uruguay offer high growth opportunities for cannabis beverages. Countries in the region are gradually liberalizing cannabis regulations to reap its economic benefits. Mexico was the first nation to pass a bill to legalize recreational use of marijuana. This has opened new opportunities for international as well as local players. Rising population, increasing product awareness and favorable regulatory environment will contribute to Latin America becoming the fastest growing regional market. However, legal and political challenges still remain in certain countries.
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According to Fortune Business Insights in a report, titled “Cannabis Beverages Market Size, Share & Industry Analysis, By Type (Alcoholic and Non-alcoholic), Distribution Channel (Mass Merchandisers, Specialty Stores, Online Retail, and Others), and Regional Forecast 2019 - 2026” The market was valued at USD 173.76 Mn in 2018.
Fortune Business Insights states that the market will reach USD 2,050.44 Mn by the end of 2026, thus exhibiting a CAGR of 37.13%.List of best companies in the global cannabis beverages market included;Aurora Cannabis,Aphria Inc.,Canopy Growth Corporation,MedReleaf Corp.,Cronos Group Inc.,GW Pharmaceuticals, plc.,CannTrust Holdings Inc.,VIVO Cannabis Inc.,Tilray, andOrganiGram Holdings.In addition to the legalization of cannabis for recreational purposes, its use as a medical aid for patients has given a kick start to the cannabis beverages market.
The cannabis beverage market is witnessing high demand as an increasing number of consumers seek robust recreational marijuana for, healthy, innovative and smoke-free experience.
Furthermore, as a result of ongoing trend and changing consumer preference products such as hemp juices, Cannabidiol (CBD) Infused water, CBD Infused tea, Tetrahydrocannabinol (THC) Infused beer, THC Wine, Hemp milk, and Hemp gin are introduced.
Hence, the introduction of new concepts by key companies will augment the growth of the global cannabis beverages market.Rising Demand for Health and Wellness Beverages Will Favor Market GrowthThe increasing demand for health and wellness beverages that are infused with bioactive compounds will boost the cannabis beverages market revenue.
For instance, Hexo Corp., a licensed producer of cannabis-based in Quebec, Canada, entered a joint venture with Molson Coors Canada to produce CBD-infused beverages.
Fact.MR, in its latest business intelligence study, depicts the nuts and bolts of the global CBD market.
The CBD report presents detailed information regarding the drivers, restraints, opportunities and trends affecting CBD market growth.
Further, the keyword report elaborates the market behavior of each vendor operating in the keyword market.We leverage space-age industrial and digitalization tools to provide avant-garde actionable insights to our clients regarding the CBD market.
For enhancing readers’ experience, the report starts with a basic overview about the CBD and its classification.
Further, we have considered 2014 as the base year, 2029 as the estimated year, 2019 – 2029 as the stipulated timeframe.Global CBD Market Establishing Inroads and Ingenious Offerings within the Pharmaceutical IndustryAccording to the report, more than 50% of the U.S. population is living in states where some form of cannabis is statutory.
Countries like Canada and Uruguay have incorporated cannabis.
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