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 2.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The cannabis beverage market consists of various beverage products containing extracts or derivatives of cannabis. Some of the common cannabis beverage products include alcoholic drinks, non-alcoholic drinks, and health drinks. Cannabis extracts such as CBD and THC provide therapeutic benefits to consumers including pain relief, anxiety relief, stress relief, anti-inflammatory properties etc. Cannabis beverages have gained popularity as they allow for precise THC and CBD dosing which can be recreational or therapeutic in nature. These beverages are consumed as substitute to smoking and are considered a safer mode of intake by consumers.
Market key trends:
One of the major trends in the cannabis beverage market is the launch of new beverage products with various flavors. Product developers are focusing on incorporating cannabis into a variety of drinks including sodas, teas, lemonades, juices etc to cater to different tastes and preferences. Furthermore, big beverage companies are entering the cannabis market through partnerships, mergers and acquisitions which is expected to drive mainstream adoption. Companies are also actively involved in research and development of beverages containing cannabinoids like CBG, CBN which are known to have certain health benefits. Adoption of cannabidiol or CBD-infused drinks is also on the rise due to exemption of CBD from Controlled Substances Act in the US. This is positively impacting the growth of the overall cannabis beverage industry.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as large capital investments are required to enter into this market. Regulations around cannabis production further increase barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate as the market has several regional and global players providing diversified product offerings giving buyers more options to choose from.
Bargaining power of suppliers: The bargaining power of suppliers is moderate to high as fewer suppliers exist for key raw materials like cannabis and other ingredients making suppliers indispensable.
Threat of new substitutes: The threat of substitutes is low as cannabis beverages offer unique functional benefits compared to alternatives in the beverage space.
Competitive rivalry: High as the market has several regional players competing on the basis of product differentiation, pricing and promotional strategies.
Key Takeaways
The Global Cannabis Beverage Market is expected to witness high growth, exhibiting CAGR of 22.% over the forecast period, due to increasing legalization of cannabis in several countries and growing consumer preference for cannabis infused beverages over other forms.
The North America region is expected to dominate the cannabis beverage market during the forecast period. The U.S accounts for the largest share in the North America region due to the growing consumer expenditure on legal cannabis in the country along with progressive legislations being introduced on medical cannabis use.
Key players operating in the Cannabis Beverage market are 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. Cronos Group Inc. and Canopy Growth dominate the market owing to their diversified product portfolio and global production footprint to cater to international demand.
Read More: https://www.ukwebwire.com/cannabis-beverage-market-overview/
According to Fortune Business Insights in a report, titled “Cannabis Beverages Market Size, Share & Industry Analysis, By Type (Alcoholic and Non-alcoholic), Distribution Channel (Mass Merchandisers, Specialty Stores, Online Retail, and Others), and Regional Forecast 2019 - 2026” The market was valued at USD 173.76 Mn in 2018.
Fortune Business Insights states that the market will reach USD 2,050.44 Mn by the end of 2026, thus exhibiting a CAGR of 37.13%.List of best companies in the global cannabis beverages market included;Aurora Cannabis,Aphria Inc.,Canopy Growth Corporation,MedReleaf Corp.,Cronos Group Inc.,GW Pharmaceuticals, plc.,CannTrust Holdings Inc.,VIVO Cannabis Inc.,Tilray, andOrganiGram Holdings.In addition to the legalization of cannabis for recreational purposes, its use as a medical aid for patients has given a kick start to the cannabis beverages market.
The cannabis beverage market is witnessing high demand as an increasing number of consumers seek robust recreational marijuana for, healthy, innovative and smoke-free experience.
Furthermore, as a result of ongoing trend and changing consumer preference products such as hemp juices, Cannabidiol (CBD) Infused water, CBD Infused tea, Tetrahydrocannabinol (THC) Infused beer, THC Wine, Hemp milk, and Hemp gin are introduced.
Hence, the introduction of new concepts by key companies will augment the growth of the global cannabis beverages market.Rising Demand for Health and Wellness Beverages Will Favor Market GrowthThe increasing demand for health and wellness beverages that are infused with bioactive compounds will boost the cannabis beverages market revenue.
For instance, Hexo Corp., a licensed producer of cannabis-based in Quebec, Canada, entered a joint venture with Molson Coors Canada to produce CBD-infused beverages.
