Cannabis-infused beverages are drinks that contain tetrahydrocannabinol (THC) or cannabidiol (CBD) derived from marijuana or hemp plants. Common cannabis beverages include sodas, teas, juices, and alcohol alternatives. As the legalization of marijuana spreads across countries and states, more people are becoming comfortable with the idea of enjoying cannabis in beverage form. The drinks appeal to recreational and medical users, as well as those who don’t like smoking but still want the therapeutic effects of cannabis. Many find the experience of consuming cannabis in liquid form through edibles and beverages to be more discreet and convenient than other formats.
The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 Mn in 2024 and is expected to exhibit a CAGR of 22.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing Acceptance of Cannabis-Infused Drinks: As mentioned earlier, the growing social acceptance and legalization of marijuana is driving more consumers to try new cannabis products in various forms. Cannabis-infused beverages have gained popularity as they provide an alternative consumption method to smoking that many find more pleasant. This growing marketability of cannabis drinks is expected to support market growth over the forecast period.
Increased Product Innovation: Manufacturers are innovating cannabis beverages with various flavors, potency levels, and health-focused formulations to appeal to different consumer segments. New product launches incorporating the latest trends are helping generate more interest and trial among consumers. This ongoing innovation is expanding the cannabis drinks market by providing versatile options.
Segment Analysis
The global cannabis beverage market is dominated by the CBD-infused beverages sub-segment. CBD-infused beverages are the most popular cannabis-based beverages as consumers are aware of the medical benefits of CBD and its non-psychoactive properties. The product provides medicinal relief without the ‘high’ associated with THC-infused beverages. Additionally, CBD-infused beverages can be easily incorporated into daily lifestyle routines compared to other formats like oils & tinctures.
PEST Analysis
Political: Some nations and regions have legalized cannabis for medical and recreational uses which is boosting the market. However, conflicting regulations across countries can hamper market growth.
Economic: Rising disposable incomes and growing affordability for premium wellness products are fueling the sales of cannabis beverages. New product launches catering to the premium segment will attract health-conscious consumers.
Social: Changing social attitude towards cannabis consumption and growing acceptance of its medical uses are supporting the market’s expansion. However, social stigma still exists in some parts of the world regarding its usage.
Technological: Players are investing in R&D to develop advanced extraction techniques for infusing cannabis extracts into beverages. This helps provide accurate and consistent dosing. New product formats like sparkling juices, tonics and flavor-infused waters are gaining traction.
Key Takeaways
The Global Cannabis Beverage Market Share is expected to witness high growth over the forecast period driven by rising product adoption for medical and recreational purposes. The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 Mn in 2024 and is expected to exhibit a CAGR of 22.0% over the forecast period 2023 to 2030.
North America currently dominates the market due to legalization of cannabis in major countries and growing product awareness. The U.S. accounts for the largest market share in the region supported by the rollout of new CBD-infused beverages across several states. The Asia Pacific region is projected to be the fastest growing market for cannabis beverages fueled by rising health issues, changing consumer lifestyles and growing medical acceptance of cannabis in nations like Australia, Thailand and South Korea.
Key players
Key players operating in the cannabis beverage market are IBM Corporation, Microsoft Corporation, SAP SE, and Oracle Corporation. These leaders are focusing on developing technologically advanced and consistent dosing solutions to gain market share. Novel product varieties are also being launched to target the premium consumer segment.
