Cannabis Beverages Market

Global Cannabis Beverages Market Size (2024 to 2032)

The global Cannabis Beverages Market size is expected to be worth USD 1.42 billion in 2024 and USD 43.63 billion by 2032, growing at a CAGR of approximately 54.3% during the forecast period.

MARKET OVERVIEW

The rise in marijuana legalization is expected to have a positive impact on growth by eradicating the illicit market and increasing tax income from legal marijuana sales.

A cannabis-infused drink, often known as a cannabis beverage, is a beverage containing cannabinoids, particularly THC. Some of the active principles present in cannabis include cannabidiol (CBD), tetrahydrocannabinol (THC), cannabinol, and terpenes. Cannabis is a popular consuming plant due to its well-known medical and therapeutic benefits. Cannabis is a psychoactive drug derived from the cannabis plant that can be consumed as a vapor, smoked, eaten, or extracted. Cannabis is occasionally used for medical or recreational purposes, but it is also frequently utilized for spiritual reasons. When made with bhang, traditional cannabis-infused drinks such as thandai and lassi come from the Indian subcontinent. Teas, sodas, fruit drinks, brews, and even kombucha are among the cannabis-infused beverages available. In the United States, cannabis, hemp, and marijuana beverages are on the market, with makers touting the beverages as safer, lighter alternatives to wine, beer, and spirits. Due to the presence of multiple small and medium-sized businesses, the global cannabis beverages market is highly fragmented. The majority of the businesses are situated in Canada, thanks to the country's legalization of marijuana for medical and recreational use.

The increased popularity of wellness drinks is expected to support demand during the forecast period 2024 to 2032.

The legalization of marijuana for medical and recreational uses has had a significant influence on alcoholic beverage sales. For example, Hi-Fi Hops, a cannabis-based beverage with zero calories and carbs and infused with Cannabidiol (CBD) and Tetrahydrocannabinol, was launched by Lagunitas, Heineken's fast-growing California beer label (THC).

MARKET DRIVERS

Consumers' preferences are shifting from soft drinks to wellness drinks, resulting in an increase in the sale of cannabis beverages.

The global cannabis beverages market's expansion is being fueled by the low sugar content of beverages. Additionally, users prefer these beverages to marijuana smoking and the ingestion of marijuana-infused chocolates, cookies, brownies, and confectionaries such as gummies and candies. Off-trade sales channels such as hotels, cafes, restaurants, clubs, and lounges are intended to increase customer interest in the product. Cannabis has seen a remarkable rise in popularity among ordinary people all around the world. Its recreational use outnumbers its medicinal use by a factor of ten, even when illegal use is taken into account. Increased penetration in undeveloped consumer markets, such as Thailand, Australia, and others, is predicted to propel the worldwide market forward. Its legalization is gaining traction over the world, owing to a growing public knowledge of its medicinal effects and therapeutic delivery methods. 

Furthermore, customers' increasing willingness to try new and creative foods and beverages has boosted market performance.

Newcomers to the industry are searching for products that are easily available, inconspicuous, and controlled, which is helping to drive the cannabis beverage business forward.Cannabis users are rapidly migrating away from smoking flowers with pipes, joints, and bongs and toward products like infused edibles and concentrates, which give a wide range of possibilities. By experimenting with new ingredients and additives, the beverage industry is undergoing a major change. Consumers, particularly in developed areas such as North America and Europe, are continually changing the category through trends and innovations in all-natural, chemical-free, and recognized and herbal compositions.The growth of the beverage business, particularly in off-trade sales channels including restaurants, clubs, and lounges, is likely to boost sales of personalized cannabis-infused beverages. Even though THC has emerged as a significant attraction and favored product among users for feeling the euphoric high, the market is undergoing a major shift with the robustly expanding demand for cannabidiol-infused drinkables. A surge in demand for health-promoting treats created with cannabis extracts has boosted product sales even further.

MARKET RESTRAINTS

Cannabis beverages are popular because they provide THC effects to customers, which are illegal in many developing and industrialized economies. The governments of these countries are enacting legislation to regulate the production and marketing of THC products in the sector. Furthermore, consumers are unaware of the items and their benefits, which hinders the global cannabis beverages market expansion.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Cannabis Beverages Market By Type

Based on type, a non-alcoholic segment is anticipated to dominate the global cannabis beverages market during the forecast period.

Given the substance's capacity to imitate the effect of alcohol with zero calories and known health advantages, the entire alcoholic beverage market is at risk of disruption. Infused goods and herbal formulations are benefiting from the current trend in the beverage industry. Low and non-alcoholic drinks with lower calories and nutritional superiority have become more popular around the world. The rise of the product category is mostly fueled by private-label companies and start-ups that are heavily leveraging the substance's therapeutic potential.

Global Cannabis Beverages Market By Distribution Channel

Based on distribution channels, the online retail sector is expected to have the largest global cannabis beverages market share in the next six years.

Cannabis-based beverages have seen a surge in popularity because of e-commerce channels that provide increased convenience, privacy, and control over product selection. Cannabis companies have seen increased sales from regulated dispensaries, opening up a slew of chances for specialized stores to stock creative and delectable beverages infused with the substance's active ingredients. Furthermore, such distribution channels are projected to serve as a one-stop shop for cannabis-based edibles, which are expected to increase at a faster rate as the legalization wave spreads. However, due to the hectic lifestyles of the millennial generation, they will continue to purchase these types of beverages through online channels.

REGIONAL ANALYSIS

North America is expected to lead the market during the forecast period 2024 to 2032.

The United States is the largest market for Cannabis Beverages in Tetrahydrocannabinol in this region (THC). It has grown considerably as a result of rising customer demand for THC-infused beverages, which are portable, easy to ingest, and have a high potency level.

Europe is also expected to increase significantly throughout the anticipated period, owing to rising consumer demand in the region.

Companies operating in the region are introducing goods to keep up with the expanding demand of wellness drinks, according to the Cannabis Trade Association. Due to the availability of marijuana-friendly cafes and restaurants in the Netherlands, demand has grown significantly.

KEY PLAYERS IN THE GLOBAL CANNABIS BEVERAGES MARKET

New Age Beverages Corporation, The Alkaline Water Company, Phivida Holdings Inc., Koios Beverage Corporation, VCC Brand, Dixie Brands Inc., Keef Brand, Hexo Corp, Aphria, Canopy Growth are some of the notable companies in the global Cannabis Beverages market.

RECENT DEVELOPMENTS IN THE MARKET

• The stock of New Age Beverages Corporation rose after the business announced that has introduced its cannabidiol products to Hong Kong. On June 18, the Colorado and Utah-based firm debuted its 'NHANCED CBD collection of oils, creams, and lotions.

DETAILED SEGMENTATION OF THE GLOBAL CANNABIS BEVERAGES MARKET INCLUDED IN THIS REPORT

This research report on the global cannabis beverages market has been segmented and sub-segmented based on type, distribution channel, and region.

By Type

• Alcoholic
• Non-Alcoholic

By Distribution channel

• Specialty stores
• Mass merchandisers
• Online retail
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa