by The cannabis beverage market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 2.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Cannabis beverages are drinks infused with tetrahydrocannabinol (THC) or cannabidiol (CBD) and other cannabinoids derived from the cannabis plant. Popular cannabis beverages include sodas, teas, smoothies, and alcoholic beverages infused with cannabinoids. They provide an alternative method of cannabis consumption for health-conscious consumers as they are considered a healthier option than smoking. Cannabis beverages are seeing increased popularity due to growing demand for wellness products with functional ingredients.
Market Dynamics:
The growing cannabis beverage market is driven by the rising legalization of recreational and medical cannabis in various countries. For instance, Canada legalized recreational cannabis consumption nationwide in 2018 becoming the first G7 country to do so. Similarly, several U.S. states such as Colorado, California, and Washington have legalized recreational and medical cannabis. This has encouraged mainstream beverage companies to enter the cannabis beverage industry developing innovative wellness drinks. Another driver for the market is growing health-consciousness among consumers. Cannabis beverages infused with CBD are gaining traction as they provide relaxation and wellness benefits without intoxication. Moreover, cannabis beverage companies are developing drinks targeting specific health concerns such as stress, insomnia, pain, anxiety which is fueling market growth.
SWOT Analysis for Global Cannabis Beverage Market
Strengths:
– Rising demand and acceptance of cannabis infused beverages alternative to smoking and vaping cannabis.
– Health benefits associated with cannabis such as reduced stress, pain relief etc. is driving the adoption of these beverages.
– Increasing product launches of cannabis infused drinks with various flavors catering to wide consumer base.
Weaknesses:
– Huge cost associated with manufacturing of cannabis infused beverages.
-Stringent regulations in various countries limiting sale and consumption of cannabis products.
Opportunities:
– Emerging markets across Middle East and Asia Pacific offer lucrative growth opportunity owing to rising awareness.
– Increasing product premiumization through addition of organic and natural ingredients appeals wider consumer base.
Threats:
-Availability of alternative products such as edibles and tinctures limits the demand for cannabis beverages.
-Negative social perception around consumption of cannabis hampers the market growth.
Key Takeaways
The global Cannabis Beverage Market is expected to witness high growth, exhibiting CAGR of 2.2% over the forecast period, due to increasing health benefits associated with Cannabis infused beverages such as reduced stress and pain relief attracting more consumers.
Regional analysis:
North America dominates the global Cannabis Beverage market and accounts for around 60% of overall sales due high legalization of cannabis consumption across Canada. Europe is the fastest growing region owing to increasing adoption of cannabis beverages as an alternative to smoking and vaping cannabis.
Key players analysis:
Key players operating in the Cannabis Beverage market are MedReleaf Corp., Cronos Group Inc., Jazz Pharmaceuticals, Phoena Holdings, VIVO Cannabis Inc., Tilray Inc., General Cannabis Corporation, Koios Beverage Corporation, New Age Beverages Corporation, Dutch Windmill Spirits, Heineken, Canopy Growth, and SK Rodnik. These players are investing in R&D activities and new product launches catering to wide range of consumers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
