Cannabis beverages include different types of alcoholic and non-alcoholic beverages which are infused with cannabis or marijuana. Rising concerns regarding headache and calorie-intake among consumers has encouraged companies operating in the food & beverages industry to invest in production of cannabis infused drinks.
Global cannabis beverage market was valued at US$ 364.8 Million in 2021 in terms of revenue, exhibiting a CAGR of 22.5% during the forecast period (2022 to 2030).
Customers are gradually shifting towards cannabis from alcohol for recreational purposes, which is expected to drive growth of the global cannabis beverage market. Customers have shifted from smoking flowers using pipes, joints and bongs towards products such as infused edibles and concentrates which offer numerous options to choose from. The trends in consumption rate of alcohol and cannabis are diverging substantially in recent times. Growing consumer awareness regarding the hazardous effects of alcohol on human health has led to decrease in alcohol consumption among consumers. According to the U.S. National Survey on Drug Use and Health, during January to December 2020, 138.5 million people aged 12 or older used alcohol 17.3 million people aged 18 to 25 used alcohol, 119.2 million people aged 26 or older used alcohol.
Furthermore, the increasing number of collaborations among key players with the goal of launching cannabis beverages is expected to fuel growth of the global cannabis beverages market. For instance, In April 2020, Hexo Corp., a Canada-based producer of cannabis products, formed a joint venture with Molson Coors Brewing Co., a producer of non-alcoholic beverages. In addition to this, in January 2020, Imaginary, a U.S.-based venture capital firm, invested US$ 5.0 million in Cann, U.S based company engaged in production and distribution of cannabis infused beverages to increase distribution of cannabis-derived intoxicants.
The COVID- 19 outbreak had a considerable impact on the overall industry growth on account of the shutdown of various manufacturing & industrial facilities along with delays in several infrastructural development projects. However, government relaxations on imposed lockdowns, followed by the resumption of industries and operations have augmented the market growth.
On the basis of region, North America dominated the global cannabis beverage market with a significant share in 2021 in terms of revenue.
Figure 1. Global Cannabis Beverages Market Value Share (%), By Region, 2021
Cannabis beverage offers THC (tetrahydrocannabinol) to the consumers which is not permissible in several developing as well as developed countries. Cannabis based beverages have exhibited comparatively lower growth in the developing regions such as Asia and Latin America, owing to the ban of THC products in market. However, growing awareness about the health benefits associated with consuming cannabis is anticipated to boost growth in these regions as well. In June 2022, after becoming the first Southeast Asian country to legalize marijuana for medical purposes in 2018, Thailand is to become the first Asian country to decriminalize recreational cannabis for personal use with relaxed regulations on allowing hemp extracts in food and beverages, and cosmetics.
|Base Year:||2021||Market Size in 2021:||US$ 364.8 Mn|
|Historical Data for:||2017-2020||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||22.5%||Forecast Period:||2022-2030|
MedReleaf Corp., Cronos Group Inc., Jazz Pharmaceuticals, Phoena Holdings, VIVO Cannabis Inc., Tilray Inc., General Cannabis Corporation, Koios Beverage Corporation, New Age Beverages Corporation, Dutch Windmill Spirits, Heineken, Canopy Growth, and SK Rodnik.
|Restraints & Challenges:||
Increasing recognition of cannabis for its medicinal and therapeutic benefits among consumers around the globe is expected to provide lucrative opportunities for the market growth of cannabis beverages. Cannabis is used a medicinal drug, owing to various health benefits that it provides such as blood pressure control, improvement in sleeping patterns, and relief from anxiety and depression. Extensive research has been done by pharmaceutical companies to produce cannabis-based medicines and treatments which are safe for health and do not cause any harmful side effects to patients.
The cannabis extracts which are infused in beverages are mainly fat soluble i.e. they cannot dissolve in water. The key challenge for beverage manufacturers is to achieve proper mixing of cannabis extracts into the liquid and maintain the shelf-stability of the products. However, the fat-soluble nature of cannabis extracts means that its psychoactive effects are delayed and consumers end up consuming excessive quantities.
Figure 2. Global Cannabis Beverage Market Value Share (%), By Product Type, 2021
On the basis of product type, in 2021, Non-Alcoholic accounted for the largest market share in terms of revenue, followed by alcoholic.
Major players operating in the global cannabis beverage market include MedReleaf Corp., Cronos Group Inc., Jazz Pharmaceuticals, Phoena Holdings, VIVO Cannabis Inc., Tilray Inc., General Cannabis Corporation, Koios Beverage Corporation, New Age Beverages Corporation, Dutch Windmill Spirits, Heineken, Canopy Growth, and SK Rodnik.
Cannabis is psychoactive drug derived from the cannabis plant which belongs to Cannabaceae family. It is also commonly known as marijuana and is used for both therapeutic treatments and recreational purposes. Since ancient times, cannabis was cultivated by people, owing to its well-known medicinal benefits. Cannabis is usually consumed in form of vapors and sometimes it is infused in food products like brownies and cookies. The rise in consumption of cannabis among consumers around the world has led to the development of cannabis infused beverage products.
Although the medicinal benefits of cannabis are well known, the market growth is still driven by consumers who use cannabis for recreational purposes. Companies involved in production of cannabis beverages are focused on preparing emulsifications for cannabis in order to meet the consumer requirements for quick and instantaneous effects of cannabis after dosage. These emulsifications help in achieving the proper suspension of cannabis into liquids.
The rising trend for consumption of healthy and dietary beverages among customers has witnessed growth in the food & beverage industry. Health conscious consumers are shifting their preferences towards using clean and organic ingredient based food products which have additional nutritional benefits. This scenario has led to the acceptance of beverages fused with cannabis as a substitute for cannabis smokers.
Among product type, the global cannabis beverage market is segmented into alcoholic and non- alcoholic beverages. Non-alcoholic cannabis beverages includes different products in which cannabis can be infused such as cannabis coffee, cannabis soda, and marijuana tea.
Cannabis has been legalized by governments in some countries such as U.S., Canada, and others for both medical use and recreational purposes. However, the cannabis market still faces challenges due to the implementation of stringent regulations in many other regions. Key factors that halt the approval of the product and its launch into market include strict testing processes, safety standards, and labelling mandates.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section