July 21, 2024
Cannabis Beverages Market

Emerging Cannabis-Infused Beverage Industry is Expected to be Flourished by Growing Demand for Cannabis-Infused Health Beverages

The global Cannabis Beverage Market is witnessing notable growth owing to the increasing demand for cannabis-infused health beverages. Cannabis-infused beverages offer numerous health benefits and are considered a healthier alternative to alcohol by many consumers. These beverages contain cannabidiol (CBD) or tetrahydrocannabinol (THC) extracts obtained from cannabis plants. Cannabis extracts are infused into sodas, teas, juices, and other drinks to impart various therapeutic benefits. Common product types include sodas, beer, energy drinks, alcohol alternatives, juices, and teas. Cannabis-infused beverages provide relief from stress, anxiety, body pain, and insomnia. They also find application in the treatment of several medical conditions such as cancer, epilepsy, multiple sclerosis, chronic pain, and neurological disorders.

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 61.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Growing Demand for Cannabis-Infused Health Beverages and Increasing Legalization of Cannabis Products are Expected to Drive Market Growth. As mentioned earlier, the emergence of cannabis-infused beverages is being driven by the growing demand for cannabis-infused health beverages. Cannabis extracts offer several therapeutic benefits and cannabis-infused drinks are considered a healthier alternative to alcoholic drinks. This increasing consumer preference for cannabis beverages as a wellness option is expected to boost market growth over the forecast period. Another key driver propelling the cannabis beverage market growth is the rising legalization of cannabis products across several countries. In the recent past, many nations have legalized the production, distribution, and recreational use of cannabis and cannabis-derived products including beverages. For instance, Canada legalized recreational marijuana use across the country in 2018. This growing acceptance and legalization of cannabis are creating new opportunities for cannabis beverage producers, thereby fueling market expansion.

Segment Analysis
The global cannabis beverage market is dominated by non-alcoholic cannabis infused drinks such as sodas, juices, and teas which accounted for over 50% market share in 2023. This is due to increasing consumer demand for healthier cannabis consumption options without the effects of alcohol. The non-alcoholic segment is expected to continue its market dominance over the forecast period owing to rising health-consciousness.

PEST Analysis
Political: Some countries and states have legalized the production and sale of cannabis beverages which is positively impacting the market growth. However, uncertainty in regulations across regions remains a challenge.
Economic: Rising personal disposable incomes and growing acceptance of cannabis for medical and recreational use is driving the market. Lower manufacturing costs compared to other products is also fueling the industry.
Social: Changing consumer preferences towards natural/organic products and desire to choose cannabis consumption method are augmenting demand. However, social stigma still associated with cannabis use in certain regions acts as a restraint.
Technological: Development of innovative extraction and infusion techniques to improve taste and effectiveness of cannabis compounds in drinks is a key trend. Integration of AI and IoT in processing and packaging is enhancing efficiencies.

Key Takeaways

The Global Cannabis Beverage Market Share is expected to witness high growth at a CAGR of 61% during the forecast period of 2023 to 2030. The market size for 2023 is estimated at US$ 547.43 Mn and is expected to reach over US$ 13 Bn by 2030.

Regional analysis: North America currently dominates the market accounting for over 40% share due to legal cannabis markets in Canada and certain U.S. states. Europe is the second largest regional market driven by increasing medical use of cannabis. The Asia Pacific region is expected to be the fastest growing market led by growing acceptance in countries such as China, Australia, and South Korea.

Key players: Key players operating in the cannabis beverage market are Cargill Inc., Nu-Tek Food Sciences LLC, Koninklijke DSM N.V., Montana Indusrie Holding A.G., Angel Yeast Co. Ltd., Tate & Lyle Plc, and Innophos Holding Inc. These players are focusing on new product launches, facility expansions and mergers & acquisitions to gain market share.

Source: Coherent Market Insights, Public sources, Desk research
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