Cannabis beverages offer various health benefits such as reduced stress, insomnia relief, muscle spasms alleviation, and pain relief. Cannabis-infused beverages contain tetrahydrocannabinol (THC) and cannabidiol (CBD) extracts that provide therapeutic effects. Cannabis sodas, teas, juices, cocktails, and other beverages are gaining popularity among health-conscious consumers. These beverages allow discreet and controlled consumption of cannabis for recreational and medical purposes. The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 61% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing health conscious population is driving the cannabis beverage market. Consumers are increasingly shifting towards cannabis beverages due to various associated health benefits such as pain relief, sleep enhancement, and stress reduction. Additionally, growing legalization of cannabis for medical and recreational use across various regions is also propelling the market growth. For instance, according to the National Conference of State Legislatures (NCSL), as of August 2022, 21 U.S. states and the District of Columbia have legalized recreational adult use of marijuana. Furthermore, increasing product innovations by prominent players to offer varied cannabis beverages in the form of sodas, teas, juices, and cocktails in different flavors is fueling the market growth. However, stringent regulations pertaining to the production, distribution, and marketing of cannabis products may restrain the market growth.
Segment Analysis
The global cannabis beverage market is segmented in terms of product type, end-use, and distribution channel. By product type, cannabis-infused drinks are dominating the market as they offer health benefits and are easily consumable. With growing awareness of cannabis-infused products’ health benefits, cannabis-infused drinks have gained popularity among consumers. Under end-use segmentation, the HORECA sector holds the largest share as cannabis beverages are being offered in restaurants, bars, pubs, and hotels. Based on the distribution channel, the offline channel dominates the market with maximum sales realized from dispensaries, specialty stores, and liquor retailers.
PEST Analysis
Political: Recently, many countries and states have legalized or decriminalized the use of cannabis. This has opened new opportunities for cannabis beverage companies to expand their business.
Economic: High per capita income and flourishing beverage industry in developed economies have boosted the demand for specialty drinks like cannabis beverages. It is estimated that the US cannabis beverage market size will cross $3 Bn by 2026.
Social: Changing attitudes toward cannabis consumption, perceived health benefits, and growing social acceptance of recreational cannabis use have encouraged customers to try cannabis beverages.
Technological: Advancements in extraction methods allow producers to precisely control a beverage’s potency and aroma profile. New cold water extraction techniques produce clean, terpene-rich cannabis extracts ideal for beverages.
Key Takeaways
The Global Cannabis Beverage Market Size is expected to witness high growth over the forecast period. The global cannabis beverage market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 61% over the forecast period 2023 to 2030.
North America dominates the market currently due to early legalization in Canada and some states of the US. Canada has emerged as the fastest growing regional market supported by the legalization of recreational use of cannabis in 2018.
Key players operating in the cannabis beverage market are Cargill Inc., Nu-Tek Food Sciences LLC, Koninklijke DSM N.V., Montana Indusrie Holding A.G., Angel Yeast Co. Ltd., Tate & Lyle Plc, and Innophos Holding Inc. These players are focusing on product launches and partnerships to expand their product portfolios and distribution networks.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
