Global Cannabis Beverage Market is estimated to be valued at USD 205.1 Mn in 2024, exhibiting a CAGR of 22.5% over the forecast period 2024-2031. Furthermore, growing demand for alternative beverages and rising popularity of infused drinks are also fueling the market growth.
Global cannabis beverage market growth is driven by growing acceptance and legalization of cannabis for both medical and recreational purposes across various regions. According to the National Conference of State Legislature (NCSL), over 36 U.S states have legalized medical cannabis and 15 states along with District of Columbia have legalized adult-use, recreational cannabis. This growing acceptance and legalization have encouraged new product launches in the cannabis beverage market. Increasing consumer preference for alternative beverages infused with natural ingredients boosts demand for cannabis infused drinks. This has attracted health-conscious consumers towards cannabis beverages. Furthermore, cannabis compounds such as THC and CBD are known to provide therapeutic benefits for conditions like insomnia, depression, and others, thus, leading to rising adoption of cannabis infused drinks for their potential health benefits.
Increasing Legalization of Cannabis around the World
One of the key drivers for the growth of global cannabis beverage market is increasing legalization of both medical and recreational cannabis in various countries around the world. As more countries legalize medical cannabis for indications like chronic pain, epilepsy, anxiety, and others, and some countries even allowing recreational use, it opens up huge potential consumer base for cannabis infused beverages. According to ArcView Market Research and BDS Analytics, bby 2024, the global legal cannabis market is projected to reach USD 66.3 billion, indicating strong growth opportunities.
Popularity of Cannabis-Infused Beverages as an Alternative to Smoking
Many consumers prefer beverages as these allow accurate dosage, are discreet and avoid side-effects of smoking like coughing or irritation in throat and lungs. Beverages also expand the consumer base as some people who does not want to smoke cannabis can opt for beverages. This has made beverages one of the fastest growing cannabis product categories.
High Cost of Cannabis Beverages Compared to Other Consumption Methods
One of the key challenges hampering the cannabis beverage market is their high product cost as compared to other methods of cannabis consumption like flowers, edibles, concentrates, and others. . High production and formulation costs are passed on to the consumers making beverages significantly more expensive than traditional methods of using cannabis. This price differential makes beverages inaccessible to mainstream or budget conscious consumers currently.
Stringent Regulations around Advertising and Marketing of Cannabis Products
Strict regulations imposed by governments around the globe on advertising and marketing of cannabis products, especially when it comes to health claims, can hamper the market growth. Unlike conventional food and beverage industries, cannabis companies cannot actively promote or educate consumers about their products due to laws around cannabis. This lack of consumer outreach and education poses a challenge for market players to communicate product benefits and build brand awareness.
Entry of Major Beverage Companies Creating Product Innovation
Leveraging their deep manufacturing, distribution and marketing capabilities, entry of large beverage companies like Constellation Brands, Anheuser-Busch and Coca-Cola into the cannabis space through strategic investments and partnerships is opening up new opportunities. These are helping drive product innovation through customized beverage formulations and novel product formats like sparkling water, cocktails, shots, and others catering to a variety of consumer segments thus expanding the market.
Growing Acceptance of CBD-Infused Beverages
While THC-infused beverages are restricted to legalized markets only, growing consumer acceptance and commercial availability of CBD-infused beverages globally is a major opportunity area. CBD beverages having various perceived wellness benefits without psychoactive effects have the ability to penetrate mainstream retail channels and a much wider consumer base compared to THC drinks.
Link - https://www.coherentmarketinsights.com/market-insight/cannabis-beverage-market-3390
Key Developments
- In February 2024, the world's largest cannabis beverage facility was launched in Los Angeles, U.S.
- In 2021, Cann launched first of-its-kind cannabis-infused caffeinated social tonic
- In May 2021, Molecule launched introduced molecule crafted (TM) cannabis beverage portfolio
- In 2021, Molecule Holdings Inc. launched Canajo, the first coffee-flavoured cannabis beverage
Key Players
Aurora Cannabis Inc., Aphria Inc., Canopy Growth Corporation, MedReleaf Corp., Cronos Group Inc., GW Pharmaceuticals, plc., CannTrust Holdings Inc., VIVO Cannabis Inc., BevCanna Enterprises Inc.
