July 21, 2024
Cannabis Beverage Market

Cannabis Beverage Market Is Estimated To Witness High Growth Owing To Rising Health Benefits

Cannabis beverages are gaining significant popularity due to their health benefits such as reduced nausea, anxiety relief, and improved sleep. The infused cannabis beverages offer advantages like consistent dosage, quick effects, and controlled flow of cannabis components in the body. The rising use of cannabis for medical purposes is prompting beverage companies to utilize cannabis extract in their drinks.

The Global cannabis beverage market is estimated to be valued at US$ 630.64 Billion in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 To 2031.

Key Takeaways

Key players: Key players operating in the cannabis beverage market are IBM Corporation, Microsoft Corporation, SAP SE, and Oracle Corporation. IBM Corporation and Microsoft Corporation are leading technology providers for cannabis traceability and supply chain solutions.

Key opportunities: The legalization of medical and recreational cannabis in various countries is opening lucrative opportunities for Cannabis Beverage Market Demand  Also, the increasing adoption of low-alcohol and healthy drinks presents potential for infusion of cannabis in beverages.

Global expansion: Major beverage companies are strategizing global expansion of cannabis drink portfolio through partnerships and acquisitions. In addition, the growing acceptance of cannabis beverages among millennials is encouraging new foreign market entries.

Market Drivers

The rising health benefits associated with cannabis is a major driver for the market growth. Regular consumption of cannabis drinks is known to alleviate chronic pain, reduce stress and anxiety, and improve sleep cycle. With growing awareness, consumers are increasingly preferring cannabis beverages to manage health conditions. Also, the introduction of innovative flavors and formats in THC/CBD-infused drinks is attracting recreational users, thereby propelling the cannabis beverage industry.

PEST Analysis

Political: Changes in legislation and policies in many countries toward cannabis legalization positively impact the Cannabis Beverage Market Some countries and states have legalized recreational and medical use of cannabis which creates demand.
Economic: Growing disposable incomes, changing consumer preferences toward wellness drinks, perceived health benefits of cannabis are major drivers. However, high production costs initially affect profits.

Social: Increasing social acceptance of cannabis, especially among millennials, growing awareness about medicinal properties, and the “experience economy” trend favor market growth. However, some social stigma still remains in certain regions.
Technological: Advancements in extraction methods help produce consistent, high-quality formulations. Cannabis Beverage Market Size And Trends Innovations in edible and drink formats expand product offerings to attract new consumers. Use of mobile apps and e-commerce aids distribution.

The North America region, led by the US and Canada, currently holds the major share of the global cannabis beverage market in terms of value due to legalization of cannabis for medical and recreational use in many states and provinces. The Asia Pacific region is projected to be the fastest growing market during the forecast period owing to rising health consciousness, growing cannabis therapeutics acceptance and loosening of regulations in countries like Thailand, Australia and South Korea.

The cannabis beverage market witnesses high concentration in the West Coast of the US, especially in California, Colorado and Oregon due to early legalization of cannabis and presence of major cannabis companies. Canada has also emerged as a major regional market due to nationwide legalization of cannabis for medical and adult use. Colorado, Washington, and Nevada are considered top markets in North America for cannabis infused beverages in terms of sales volume currently.