April 12, 2024

Cannabis Beverage Market Is Expected To Be Flourished By Growing Health Benefits Of Cannabis Drinks

Cannabis beverages offer enhanced consumer experiences by infusing active cannabinoids like THC and CBD into varied beverages such as alcohol-free drinks, teas, sodas, juices, and coffee. Cannabis drinks provide a smoother consumption experience compared to smoking while delivering similar psychological and physical effects. Rising consumer preferences for alternative consumption methods of cannabis are contributing to the demand for cannabis-infused beverages.

The global Cannabis Beverage Market is estimated to be valued at US$ 630.64 Bn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

The growing health benefits of cannabis drinks is driving the market growth. Cannabis beverages are attracting health-conscious consumers as they provide therapeutic effects of cannabis without the risks associated with smoking. Cannabis contains non-psychotropic cannabidiol (CBD) that provides various health benefits such as reduced anxiety and stress, improved sleep, alleviated chronic pain, and anti-inflammatory effects. Furthermore, CBD beverages are finding increased usage for managing health conditions like insomnia, anxiety, epilepsy, and cancer. Various studies have demonstrated the effectiveness of CBD in treating these ailments, thereby increasing its demand in the beverage segment. Demand for cannabis beverages is expected to surge further with ongoing research on extending the possibility of using cannabis in chronic disease management.

Segment Analysis
The Global Cannabis Beverage Market Size is dominated by the CBD-infused beverages segment which accounts for over 60% share. CBD beverages are preferred due to the growing preference of customers for healthier products derived from natural ingredients. CBD is known to provide health benefits such as reduced anxiety and improved sleep quality. Within CBD beverages, ready-to-drink beverages dominate as they provide convenience and are easy to consume on-the-go.

PEST Analysis
Political: Some countries and states have legalized the sale and use of cannabis for medical and recreational purposes which is fueling the growth of the cannabis beverage market. However, varying laws and regulations across countries continues to restrain the market to an extent.
Economic: Rising disposable incomes and growing culture of experimentation with different types of beverages is positively impacting the market growth. Cannabis Beverage are priced at a premium compared to regular drinks which has encouraged companies to invest in this space.
Social: Changing views towards cannabis consumption and growing social acceptance of cannabis for health and wellness is driving the demand. The stigma around cannabis is reducing as more people recognize its therapeutic benefits.
Technological: Players are focusing on innovations such as development of THC and CBD extraction techniques to produce consistent and standardized cannabis extracts for beverages. Advances are also being made in blending cannabis with various flavors to enhance taste and palatability.

Key Takeaways
The global cannabis beverage market is expected to witness high growth over the forecast period owing to growing legalization of cannabis worldwide for medical and recreational purposes. With more companies entering the cannabis beverage domain, competition is increasing which will drive product innovations. Players are constantly improvising extraction methods and developing beverages that closely resemble mainstream drinks while delivering the functional benefits of cannabis. The global Cannabis Beverage Market is estimated to be valued at US$ 630.64 Bn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 to 2031.

Regional analysis: North America dominates the cannabis beverage market currently due to legalization of marijuana across major states like California. The U.S. and Canada are pioneering markets for Cannabis Beverage. However, Europe is expected to emerge as the fastest growing regional market as countries like the U.K., Germany, Italy liberalize their laws and allow sale of cannabis beverages.

Key players: Key players operating in the cannabis beverage market are IBM Corporation, Microsoft Corporation, SAP SE, and Oracle Corporation. IBM and Microsoft are engaging in partnership with cannabis companies to develop delivery platforms and supply chain solutions. SAP offers ERP and business software specifically targeted towards cannabis enterprises. Oracle provides cloud infrastructure and analytics tools to cannabis firms.

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