Cannabis Beverage offer numerous health benefits such as reduced stress and anxiety, pain relief, improved sleep, and stimulated appetite. These beverages are gaining popularity among young consumers as an alternative to alcoholic drinks. Cannabis infused drinks provide the psychotropic effects of cannabis through edibles and drinks that are convenient and discreet to consume.
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 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the emerging key trends in the Cannabis Beverage market is the growing demand for non-alcoholic alternatives. Younger consumers are increasingly choosing plant-based and functional drinks over alcoholic beverages due to health and wellness concerns. Cannabis infused drinks appeal to this consumer base due to perceived wellness benefits and are marketed as social lubricants that provide relaxation without the intoxicating effects of alcohol. Several beverage producers are launching cannabis infusions in popular drink categories like teas, lemonades, cold brew coffees and sport drinks to attract new users. Advanced extraction and nanoencapsulation techniques are allowing consistent dosing of cannabinoids in drinks while masking unwanted tastes and aromas. The emergence of sophisticated non-alcoholic cannabis beverages tailored for socializing and wellness is expected to significantly boost the growth of this market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the cannabis beverage industry requires a high initial capital investment and established distribution networks. However, cannabis regulations are rapidly evolving.
Bargaining power of buyers: The bargaining power of buyers is moderate as the demand for cannabis beverages is growing and there are many vendors present in the market providing substitutes.
Bargaining power of suppliers: The bargaining power of suppliers is high as cultivation and extraction of cannabis and production of cannabis ingredients require specialized infrastructure and knowledge.
Threat of new substitutes: The threat of new substitutes is high as there are alternative products in the alcohol and soft drink categories that can be substituted for cannabis beverages.
Competitive rivalry: The competitive rivalry is high due to the presence of many established players offering a variety of cannabis beverages.
Key Takeaways
The Global Cannabis Beverage Market Growth is expected to witness high at a CAGR of 8.2% during the forecast period of 2024 to 2031. The market size for 2024 is US$ 630.64 Bn.
Regional analysis: North America dominates the cannabis beverage market with the largest market share owing to the legalization of cannabis for both medical and recreational purposes in major countries of the region. Canada and the U.S. are among the fastest growing regional markets.
Key players: Key players operating in the Cannabis Beverage Market are IBM Corporation, Microsoft Corporation, SAP SE, and Oracle Corporation. IBM offers Watson, an AI platform to identify opportunities in cannabis market and help companies comply with regulations. Microsoft provides cloud and data solutions for cannabis companies to store and analyze data securely.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
