February 25, 2024
Cannabis Beverage Market

Cannabis-Infused Beverage Market Driven by Increasing Consumer Preference for Alternative Beverages

The global cannabis-infused beverage market has been gaining significant traction over the past few years owing to rising demand for alternative beverages among health-conscious consumers. Cannabis-infused beverages contain cannabidiol (CBD) or tetrahydrocannabinol (THC) and offer several therapeutic benefits such as reduced anxiety and insomnia. These beverages are available in different flavors and are generally infused with marijuana or hemp extracts. Cannabis-infused drinks provide consumers the benefits of cannabis without smoking. The market has seen the introduction of various product types including alcohol-free beverages, cocktails, mocktails, tea & coffee, soda and numerous fruit-flavored drinks. The convenient dosing and quick onset of effects have further increased the popularity of these beverages.

The global cannabis-infused beverage market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends prevailing in the cannabis-infused beverage market is the increasing demand for cannabis-infused drinks with reduced THC levels. Several companies are introducing beverages with new formulation having lower levels of THC to attract health-conscious consumers seeking the therapeutic benefits without associated intoxication. For example, Canopy Growth launched Quatreau, a line of CBD-infused beverages containing zero THC. Similarly, Lagunitas brewing company launched Hi-Fi Hops, a non-alcoholic hop water beverage infused with both THC and CBD. Growing popularity of cannabis-infused drinks among millennial population is another significant trend. Millennials view cannabis as a relaxation aid and are more willing to experiment with cannabis beverages. Several new product launches targeting this demographic segment are expected to support the market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: Low barriers to entry due to lack of regulations and rising demand. However, established players have strong brand recognition and distribution networks.

Bargaining power of buyers: Buyers have significant bargaining power due to availability of substitutes and undifferentiated products. They can force prices downwards.

Bargaining power of suppliers: Suppliers of raw materials like cannabis and hemp have increasing bargaining power owing to shortages and consolidations in the supply base. This increases input costs.

Threat of new substitutes: Threat from new substitutes is high as various alcoholic and non-alcoholic beverages can replace cannabis beverages.

Competitive rivalry: Intense competition exists among existing players to gain market share. Companies compete based on quality, price, variety of products and marketing initiatives.

Key Takeaways

The Global Cannabis Beverage Market Size is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030

North America currently dominates the market owing to legalization of cannabis in Canada and growing number of U.S. states. North America accounts for over 40% share of the global market.

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.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it