The cannabis beverage market has witnessed significant growth in recent years. Cannabis infused beverages offer numerous health benefits such as improved relaxation, better sleep, reduced stress and anxiety, and pain relief. Beverages containing hemp-derived cannabidiol (CBD) are gaining popularity among health-conscious consumers as CBD is known to have therapeutic benefits without intoxicating effects. The growing awareness about various medical uses of cannabis and legalization of cannabis in numerous countries is further propelling the demand for cannabis beverages globally.
The Global Cannabis Beverage Market is estimated to be valued at US$ 630.64 Bn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Cannabis Beverage market are IBM Corporation, Microsoft Corporation, SAP SE, and Oracle Corporation.
The key opportunities in the Global Cannabis Beverage Market Growth include growing consumer preference for zero-alcohol and wellness drinks infused with hemp and CBD. Cannabis infused beverages are considered a social drink which promises to revolutionize the functional beverage market.
Technological advancements such as use of nanotechnology for delivering cannabinoids into the bloodstream more efficiently and development of innovative cannabis infused beverage formulations are expected to drive the market growth.
Market Drivers
Changing consumer preference towards healthier beverage alternatives is a major market driver. Cannabis infused beverages are considered natural relaxants and promote overall well-being without the side effects of smoking or vaping cannabis. Increasing legalization of cannabis across countries for both medical and recreational purposes is another key factor propelling the demand for cannabis beverages.
Current Challenges in the Cannabis Beverage Market
The cannabis beverage market is still in its nascent stage and facing many challenges. One of the major challenges is the lack of regulations around labeling and marketing of cannabis-infused drinks. With different states having different laws regarding use and sale of cannabis, it becomes difficult for companies to market and advertise their products uniformly. Furthermore, determining serving sizes and appropriate THC levels in drinks is also challenging from testing and quality control perspective. There are also concerns around safety and appeal of these products to underage population. Educating customers about proper use and effects is another hurdle for companies.
SWOT Analysis
Strength: Cannabis beverages offer alternatives to smoking and provide precise dosing. They are easy to consume and have faster onset of effects compared to edibles.
Weakness: Product efficacy and stability depends on bioavailability which is difficult to control in beverage form. Drinks also possess risks of accidental consumption.
Opportunity: Growing adoption of cannabis for medical and recreational use is driving the demand. Wide product launches by established beverage players can expand the market.
Threats: Unclear long term health impact of regular consumption and strict regulations in many countries pose threats. Substitutes like edibles also compete for the same target consumers.
Geographical Regions
In terms of value, North America currently dominates the cannabis beverage market owing to legalization in major markets like U.S. and Canada. The region accounted for over 60% market share in 2022 primarily due to growth in states like Colorado, California and Massachusetts.
The Asia Pacific region is poised to be the fastest growing market for cannabis beverages during the forecast period. Countries like Australia, Taiwan, Thailand and South Korea are witnessing rising product adoption as regulations become lenient. Increasing investments by leading companies will accelerate market expansion across Asia in coming years.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it