CANNABIS BEVERAGE MARKET ANALYSIS

Market Concentration and Competitive Landscape

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The launch of innovative cannabis infused beverages is significantly driving the growth of the global cannabis beverage market. More and more companies are introducing novel beverage products containing non-intoxicating cannabidiol (CBD) or tetrahydrocannabinol (THC) which provides recreational effects. CBD-infused beverages in particular witnessing high demand as they provide therapeutic benefits like reduced anxiety and stress without the "high" feeling.  Currently, the demand for cannabis infused beverages is high among millennials and Generation Z consumers who prefer wellness drinks offering health advantages. Manufacturers are leveraging this opportunity by launching varied beverage types infused with CBD and/or THC extracts, including sparkling waters, cold-brew coffees, relaxation teas and workout recovery formulas. They are also utilizing advanced nanoencapsulation technology that allows quicker absorption of cannabinoids in the body compared to traditional methods. This enhances the functional experience for consumers. Several mainstream beverage giants have entered the market to cash in on the future potential. For instance, The Coca-Cola Company inked deals with Canadian cannabis producer Aurora to develop CBD-based beverages. Similarly, Constellation Brands invested over USD 4 Bn in leading cannabis company Canopy Growth Corporation to create cannabis-infused drinks. Such strategic investments and partnerships between cannabis and beverage leaders will accelerate innovations. It will also help improve accessibility of cannabis products as the market expands globally in the coming years.  As reported by the United Nations Office on Drugs and Crime in 2020, the use of cannabis for medical and recreational purposes is increasing worldwide. The report stated that cannabis plant cultivation has spread to all continents except Antartica in recent times. This changing social attitude coupled with imminent legalization of cannabis in more regions indicates the cannabis beverage industry will have robust long-term growth prospects internationally.