CANNABIS BEVERAGE MARKET ANALYSIS

Strict regulations regarding the maximum allowed THC content in cannabis-infused beverages can hamper the growth of global cannabis beverage market. Many countries and states have put very low caps on the amount of psychoactive THC that can be present in a single serving of a cannabis drink. For example, Canada allows only 2mg of THC per serving while some U.S. states have even lower limits of just 1mg. Given that the onset of effects from edible and drinkable cannabis products is slower than smoking, most consumers prefer higher doses to feel the full intended impact. However, maintaining THC levels above the regulated limits would make the products non-compliant and illegal to sell.  This forces beverage companies to artificially dilute the cannabinoid concentration in their offerings to abide by the laws. As a result, consumers may need to consume unreasonably large volumes to perceive desirable benefits, defeating the purpose of the drinks. With so little THC per serving, the effects are underwhelming and fail to offer a worthwhile cannabis-enhanced experience. This hampers its demand potential. According to a 2021 report by the UN Office on Drugs and Crime, over 50% of edible cannabis consumers in North America claimed that currently available low-dose products did not meet their needs and prevented wider acceptance of the form factor.

Opportunities: Potential to target a wider consumer base with cannabis infused alcohol-free drinks

Targeting the wider consumer base of health-conscious individuals with cannabis infused non-alcoholic drinks could be a major growth opportunity for the global cannabis beverage market. As awareness about the health impacts of excessive alcohol consumption grows, many consumers are increasingly interested in alternative social drinks that provide the experiential benefits of alcohol. Cannabis infused beverages that deliver a pleasurable consumer experience but without any alcohol offers opportunities for growth of market.  According to a 2021 survey by the World Health Organization, around 35% of countries reported an increase in individuals abstaining from alcohol in social settings due to growing health concerns. This presents a massive addressable audience for the cannabis beverage industry. With the health virtues of cannabis gaining wider acceptance through ongoing research, cannabis infused alcoholic drinks may be viewed more favorably than traditional alcohol by many consumers seeking a healthier alternative for socialization. Beverage companies that can successfully deliver satisfying experiential qualities through precise cannabinoid formulations stand to gain considerably in this evolving market landscape.