Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Cannabis Beverages market.
Trusted Business Insights presents an updated and Latest Study on Cannabis Beverages Market. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Cannabis Beverages market during the forecast period.
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Industry Insights, Market Size, CAGR, High-Level Analysis: Cannabis Beverages Market
The global cannabis beverages market size was valued at USD 901.8 million in 2018 and is expected to expand at a CAGR of 17.8% from 2021 to 2026. Rising demand for wellness drinks is anticipated to drive the growth. Moreover, low sugar content of the product and presence of appropriate quantity of cannabis for consumption are the factors projected to fuel the product demand. Legalization of marijuana usage for medical and recreational purposes in many countries is expected to drive the production as well as demand for cannabis-infused beverages.
Increasing use of cannabis for treatment of neurological disorders, cancer, and pain control is anticipated to drive the demand for cannabis drinks. Diverse application of cannabis is resulting in significant growth opportunity for the market growth. Growing consumer interest in cannabis edibles is also expected to support the growth. Cannabis consumers are shifting their focus from smoking cannabis to alternative ways, such as beverages, tinctures, and chocolates and other edibles. Consumers are inclined to consuming concentrated and cannabis-infused products, which in turn is expected to support the market growth. Cannabis beverages are expected to replace other marijuana-infused consumables, such as chocolates, cookies, brownies, and confectionaries like gummies and candies that are considered to be unhealthy. This factor is expected to boost demand for cannabis drinks over the forecasted period.
The sale of cannabis beverages via off trade channels, such as hotels, cafes, restaurants, clubs, and lounges is expected to drive the growth of the market. Declining sales of alcohol and soft drinks across the globe is representing changing consumer preference when it comes to beverage consumption. Alcohol companies are shifting their focus to marijuana to capture greater market share in the form of investments in R&D activities and new product lauches. For instance, Lagunitas, Heineken’s fast-growing California beer label, launched Hi-Fi Hops, which is a cannabis-based beverage with zero calories or carbs and is infused with Cannabidiol (CBD) and Tetrahydrocannabinol (THC). In 2017, Constellation Brands, third largest beer manufacturer in U.S., entered into a partnership with Canopy Growth-worlds largest marijuana grower to develop cannabis-infused beverages.
The marijuana beverages market is driven by new product launches and increasing sales of cannabis drinks from brewing companies. The demand is majorly influenced by millennials. As per a 2017 Yahoo News poll, majority of the 55 million recreational marijuana users in U.S. were millennials. Most millennials consume marijuana socially and only 25% of them consume it alone. A 10-year study by researchers at University of Connecticut and Georgia State University completed in 2017, found that in U.S. counties where marijuana was legalized, wine and beer purchases decreased by 15%.
Component Insights of Cannabis Beverages Market
By component, the market is segmented into Cannabidiol (CBD) and Tetrahydrocannabinol (THC). The demand of THC infused cannabis beverages is majorly driven by rising product demand from adult consumers for recreational purposes. Rising demand for the therapeutic effects of the component along with the euphoria it provides is expected to bode well for the growth of the segment in the forthcoming years.
CBD infused cannabis drinks are registered the fastest growth in 2018. Also, the demand is expected to witness a surge over the forecasted period owing to the non-psychoactive properties of CBD. Lack of psychoactive effect in the CBD drinks is widening its scope for usage of the drinks in medical purposes. Many consumers are considering CBD drinks as a wellness and anti-inflammatory products, such as kombucha-a probiotic drink. This drink can potentially be used for treating chronic pain, anxiety, substance use disorders and central nervous system diseases. These factors are expected to boost the adoption of the product, resulting in the growth of the segment.
Type Insights of Cannabis Beverages Market
By Type, the cannabis beverages market is segmented into alcoholic and non-alcoholic drinks. The demand for alcoholic cannabis-infused beverages is expected to witness strong growth over the forecasted period, driven by increasing participation of alcohol brewing companies infusing beers with THC and CBD. The demand is majorly driven by those who consume both alcohol and cannabis. High preference for beer and spirits among cannabis consumers is expected to further fuel the growth of the segment in the forthcoming years.
Non-alcoholic cannabis beverages is estimated to be the largest and fastest growing segment in 2018. The demand for non-alcoholic beverages is increasing owing to increasing demand for wellness drinks among consumers. Newcomers who are willing to try cannabis infused beverages are boosting demand of non-alcoholic cannabis beverages. Consumers looking for healthy drinks are more inclined toward consumption of non-alcoholic cannabis infused in drinks such as teas, drops, elixirs, water, carbonated beverages, energy drinks, lemonade, and fruit drinks. The demand of non-alcoholic drinks is majorly driven by female millennials. Manufacturers are targeting the growing female consumer base with calorie free drinks over brownies and cookies. Also, alcohol manufacturing giants are heavily investing in development of non-alcoholic beverages. For instance, Gatineau, Que-based Hexo entered into a joint venture with Molson Coors in August 2017 and launched Truss brand to develop non-alcoholic cannabis beverages for the Canadian market.
Regional Insights of Cannabis Beverages Market
North America is estimated to be the fastest and largest market for cannabis beverages. The legalization of cannabis for medial and recreational purpose is a major factor driving the growth. In 2018, Canada legalized use of marijuana for recreational and medical purpose. As per the National Conference of State Legislatures, total 33 U.S. states, District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands approve publically available medical cannabis program resulting in increased launch of new products in the region. Also, 13 U.S. states allow the use of low THC and high CBD products for medical purpose, resulting in high demand for CBD infused cannabis drinks in the region.
Europe is also estimated to witness significant growth over the forecasted period owing to the rising consumers in the region. As per the Cannabis Trade Association, the number of CBD users in U.K. increased from 125,000 in 2016 to 250,000 in 2017. Also, the companies operating in the region are launching products to keep up with the growing trend of wellness drinks. For Instance, Manchester-based CBD Ultra and Cloud 9 Brewing launched U.K.s first CBD Session IPA beer brewed with Cannabis Sativa extract. The demand is also strong in Netherlands owing to the presence of cafes and restaurants dedicated for marijuana consumption. Growth of cannabis tourism in the country is expected to further boost the demand in the country. Counties, such as Australia and Uruguay are also anticipated to witness significant rise in product demand, owing to legalization of marijuana for medical and recreational purpose.
Market Share Insights of Cannabis Beverages Market
Key market players are New Age Beverages Corporation; The Alkaline Water Company; Phivida Holdings Inc.; Koios Beverage Corporation; VCC Brand; Dixie Brands Inc.; Keef Brand; Hexo Corp; Aphria; and Canopy Growth. The market is highly fragmented in nature as a large number manufacturers is present and actively engaged in product launches and mergers and acquisitions to boost their market share. For instance, in 2017, Constellation Brands, the third largest beer manufacturer in U.S. entered into a partnership with Canopy Growth-worlds largest marijuana grower-to develop cannabis-infused beverages.
Also, in 2019, New Age Beverages Corporation signed as agreement with Dock light, division of Privateer Holdings for 50-50 profit-sharing partnership to sale marijuana-infused products under the Marley Natural brand. In 2019, The Alkaline Water Company acquire AQUAhydrate to expand their retail distribution across North America with retailers including Walmart, Target, Safeway, Rite Aid, GNC Meijer, QT, and Albertsons along with celebrity investors continue to serve as brand ambassadors.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Cannabis Beverages Market Research Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global cannabis beverages market report on the basis of type, component, and region:
Type Outlook (Revenue, USD Million, 2019 – 2030)
Component Outlook (Revenue, USD Million, 2019 – 2030)
Quick Read Table of Contents of this Report @ Cannabis Beverages Market Size & Share, Market Research and Industry Forecast Report, 2020-2026 (Includes Business Impact of COVID-19)
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