The adoption of the cannabis beverages market is expected to increase at a CAGR of 17.00% during the forecast period. The cannabis beverages market size is anticipated to rise from USD 1,227.3 Million in 2023 to USD 5,899.5 Million by 2033.
For a long time, cannabis was mostly used for medicinal purposes. However, in recent years, marijuana use has expanded to include consumable drinks such as cannabis-based beverages.
Cannabis beverage companies have entered the market to meet the growing demand for CBD products. Taking illegal consumption into account, recreational cannabis use is far superior to medicinal cannabis use.
Due to general public efforts to legalize marijuana for both medical and recreational uses, the industry's interest in CBD-based products has soared. Cannabidiol (CBD)-infused beverages are becoming more and more well-liked among consumers because of their non-psychoactive effects.
Furthermore, users prefer these beverages over marijuana smoking and the consumption of cannabis-infused brownies, cookies, chocolates, and confectioneries. Clubs, hotels, restaurants, cafés, and lounges are examples of off-trade sales channels that are likely to raise client interest in the product. While the sector has so far been able to function within the odd, frequently obscure regulations governing the production, marketing, and sale of its products, state and federal laws have significantly impeded growth. Since laws differ so greatly from state to state, all company functions, including logistics and fundraising, are more complex in this industry.
| Attribute | Details |
|---|---|
| Cannabis Beverages Market Estimated Size (2023) | USD 1,227.3 Million |
| Cannabis Beverages Market CAGR (2023 to 2033) | 17.00% |
| Cannabis Beverages Market Forecasted Size (2033) | USD 5,899.5 Million |
Declining sales of alcohol and soft drinks reflect a shift in customer taste for beverage use. Alcohol businesses are refocusing on marijuana in order to get a larger market share through Research and Development spending and the introduction of new products.
Despite the fact that millennials are the primary consumers of cannabis-infused products, Gen Z is quickly catching up due to the health benefits offered by these components.
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Cannabis as a Wellness Option
Consumers concerned about their health are becoming increasingly Cali sober, a term that sounds antiquated but describes replacing alcohol intake with "less damaging" substitutes like cannabis. Alcohol makers should know that the cannabis-infused beverage sector primarily emphasizes wellness and health in their product promotion.
Industry leaders are taking advantage of cultural shifts that make many consumers reevaluate their consumption of alcohol, sugar, and other substances. Marketing teams promote cannabis-infused beverages as a "health option" that can aid in improved sleep and relaxation because they lack alcohol and frequently have few calories.
Expansion of eCommerce Channels Would Assist Market Growth
There is a significant increase in demand for cannabis-infused beverages via e-commerce platforms that offer a high degree of autonomy, privacy, and accessibility in product selection.
Cannabis sales have increased from regulated dispensaries, opening up many opportunities for specialized retailers to present delicious and creative drinks infused with some active principles from cannabis. Furthermore, these distribution channels intend to serve as the go-to place for cannabis-based edibles and aid their growth.
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Cannabis users are no longer satisfied with smoking flowers with joints, bongs, or pipes; instead, they have a growing preference for new products, including concentrated and infused items. As a result, the beverage sector is going through a necessary shift.
Customers, especially those in the developed markets of North America and Europe, are consistently establishing the category of organic and chemical-free, as well as detectable and herbal formulation trends and advancements. This is expected to support the market for cannabis beverages in the coming years.
Cannabis beverages with CBD as an ingredient saw the most substantial rise of 17.8% in 2021. Due to CBD's non-psychoactive qualities, the demand is also anticipated to increase over the projected time.
Drinks containing CBD have fewer psychotropic side effects, increasing their potential for treatment in medical conditions. Like the probiotic kombucha, many customers are exploring CBD beverages as wellness and anti-inflammatory goods.
In 2023, it is anticipated that non-alcoholic cannabis beverages could represent the most significant and fastest-growing market as customers invest more in wellness drinks.
The demand for non-alcoholic cannabis beverages is also increasing as more people have opened to trying new flavors and edibles. Non-alcoholic cannabis-infused beverages such as teas, drops, elixirs, water, carbonated beverages, energy drinks, lemonade, and fruit drinks are more popular among customers looking for healthy beverages.
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The largest market share for cannabis beverages is held by North America, which also commands the top spot in the industry. In 2020, this region was expected to generate USD 527.83 Million. The functional beverage market in the USA dominated the industry, where a sharp growth curve is exhibited.
The regional market's rapid growth can be attributed to rising consumer demand for these beverages. According to the Cannabis Trade Association, many regional businesses are working to develop new products to meet the growing demand for wellness beverages. Marijuana-friendly restaurants and cafes in the Netherlands are also expected to contribute to demand opportunities. A noticeable increase in cannabis tourism across the country is expected to boost demand for these products even more. The European market is expected to account for 41% of the global platform in the coming years.
Cann, a Cannabis-infused Beverage Company, Sells 150,000 Units and Raises USD 5 Million in Funding
Cann, a cannabis beverage firm that positions itself as a pleasant substitute for alcohol, is increasing funding as it introduces the product to Canada, its first venture into the foreign market. The company offers a wide range of products, some of which are only available in certain areas. These products include THC-infused syrups, which can be combined with tonic water or used as a component in cannabis cocktails.
Of course, Cann is constrained in what markets it can enter by more general cannabis regulation. Currently, the firm offers its goods in Illinois, Massachusetts, Nevada, California, and Massachusetts. Their debut in the Ontario market marks the beginning of their expansion into Canada.
The dominant competitors in the market employ various strategies to strengthen their position as the industry's top businesses. One such effective strategy is acquiring companies to increase brand value among consumers. Intermittently offering ground-breaking products after thoroughly analyzing the market and its target audience is another crucial tactic.
For instance, Molecule Holdings Inc. launched Molecule Crafted, a line of specialty beverages with cannabis infusions, in Canada in April 2021. These cannabis beverages have few calories and come in exotic and potent flavors.
Latest Developments in the Cannabis Beverages Market:
In August 2021, Cann, a California-based producer of THC beverages, announced the release of Passion Peach Mate, a unique and exclusive caffeinated cannabis beverage. The producer created this line of products to give consumers who are looking for alternatives to alcoholic beverages all-natural caffeine with a trace amount of THC.
Cannabidiol, or CBD as it is more commonly known, is a substance derived from cannabis that Coca-Cola Inc. (COKE) is considering incorporating into functional wellness beverages around the world.
According to a preliminary study, CBD provides considerable medical benefits for treating neurological illnesses. Additionally, it is non-psychoactive, which means that it has no adverse effects on one's awareness of their surroundings.
Constellation Brands (STZ), the company behind the best-selling Corona and Modelo beers, entered the cannabis market last year by purchasing a 10% interest in Canopy Growth Corp., the country's most prominent cannabis producer (CGC). The beer business reportedly intends to create cannabis-infused beverages.
Two further breweries have joined the cannabis movement. Heineken, a Dutch brewer, introduced Hi-Fi Hops through its Lagunitas American brand, which is sold at a few California medicinal marijuana clinics. The beverage, which has a beer-likEflavor, substitutes tetrahydrocannabinol (THC), a psychoactive component of cannabis, for alcohol.
The Molson Coors Brewing Company (TAP), based in Denver, has teamed with the Canadian brand Hydropothecary. Following legalization, both businesses intend to "pursue chances to manufacture non-alcoholic, cannabis-infused beverages for the Canadian market."
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 17.00% from 2023 to 2033 |
| Base Year of Estimation | 2023 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Million and Volume in Units and F-CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis |
| Key Segments Covered | By Type, By Component, By Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Middle East & Africa; Oceania |
| Key Countries Profiled | USA, Canada, Brazil, Mexico, Germany, Italy, France, United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia |
| Key Companies Profiled | Canopy Growth Corporation (Canada); The Cronos Group (Canada); Tilray. (USA); Hexo (Canada); CannTrust (Canada); Aurora Cannabis Inc. (Canada); GW Pharmaceuticals plc. (United Kingdom); VIVO Cannabis Inc. (Canada); Alkaline88, (USA); NewAge Inc. (USA); Cannara. (Canada); Dixie Brands (USA); KANNAWAY LLC. (USA) |
The global Cannabis Beverages market is estimated to be valued at USD 1,227.3 Million in 2023.
The Cannabis Beverages market is likely to grow at a CAGR of 17.00% from 2023 to 2033.
The Cannabis Beverages market is projected to reach a valuation of USD 5,899.5 Million by 2033.
North America is projected to lead the global Cannabis Beverages market by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Alcoholic 5.2. Non-Alcoholic 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 6.1. Cannabidiol (CBD) 6.2. Tetrahydrocannabinol (THC) 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. Middle East and Africa (MEA) 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. The Alkaline Water Company 15.2. Phivida Holdings Inc. 15.3. Koios Beverage Corporation 15.4. Dixie Brands Inc. 15.5. Keef Brand 15.6. Hexo Corp. 15.7. MedReleaf Corp. 15.8. Vivo Cannabis Inc. 15.9. Canopy Growth 15.10. Aphria Inc. 15.11. GW Pharmaceutical, PLc. 16. Assumptions & Acronyms Used 17. Research Methodology
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Cannabis Beverages Market
