Cannabis Beverage Market Is Estimated to Witness High Growth Owing to Increasing Consumer Awareness About Therapeutic Benefits

 

Cannabis Beverages Market

Cannabis beverages are infused drinks made from the extracts of cannabis or hemp plants. Cannabis beverages include products like sodas, bottled waters, lemonades, teas, and cold-pressed juices. Cannabis beverages offer health benefits like relief from pain, anxiety, and stress. They have found applications in conditions such as insomnia, arthritis, muscle spasms, and chronic pain. The market is gaining popularity among people who prefer non-smoking and non-vaping options to consume cannabis.

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:

The increasing consumer awareness about the therapeutic benefits of cannabis is a key driver fueling the growth of the cannabis beverage market. According to a survey, Americans have witnessed a major shift in their perception of marijuana from unacceptable to acceptable for medical and recreational use over the past decade. The lifting of restrictions on cannabis use globally is also expected to boost market growth. However, consumer lack of awareness about dosages and product differences pose a major challenge. Manufacturers are investing in research and development activities to introduce innovative products targeting different health conditions. They are also carrying out educational marketing campaigns to increase consumer understanding of cannabis products.

SWOT Analysis

Strength: The cannabis beverage market has witnessed high growth in recent years owing to the increasing legalization of cannabis across various countries and regions. Cannabis infused beverages offer an alternative to consumers seeking the experience of cannabis without smoking. Beverage manufacturers are producing a wide range of drinks infused with THC and CBD which provides convenience to consumers.

Weakness: However, stringent regulations around the production, distribution, and marketing of cannabis beverages continues to limit the growth potential of the market. There are also health concerns regarding the prolonged effects of cannabis when consumed in beverage form. Manufacturing companies face challenges related to product shelf life and consistency of the cannabis concentrations in beverages.

Opportunity: North America currently dominates the global cannabis beverage market and is expected to continue its dominance during the forecast period. Favorable reforms and loosening of restrictions related to cannabis in the US and Canada is fueling market growth. There is an opportunity to target the growing health-conscious consumer base through introduction of low-calorie, sugar-free cannabis drinks. Beverage startups are investing in novel flavors and formulations to expand the customer base.

Threats: Unclear regulatory guidelines and policies continues to act as a roadblock for the widespread commercialization of cannabis beverages. Negative social perceptions attached to cannabis consumption also pose a challenge. Economic downturns can impact consumer spending on premium wellness drinks like cannabis infused beverages. Intense competition from substitute beverage categories like energy drinks, juices, teas can threaten the growth of cannabis drinks market.

Key Takeaways

The Global Cannabis Beverage Market Share is expected to witness high growth during the forecast period of 2023 to 2030 supported by ongoing legalization of cannabis across various regions. 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.

Regional analysis: North America accounts for around 60% value share of the global cannabis beverage market led by the growing consumption in the US and Canada. Liberal cannabis regulations, increasing product availability and societal acceptance are fueling market growth. Cannabis infused beverages are gradually gaining popularity among health-conscious adult consumers in Western Europe as well. However, regulatory challenges exist in certain countries.

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. Key players operating in the cannabis beverage market are focusing on introducing varied product formulations with customized THC/CBD concentrations to appeal diverse consumer segments. Strategic partnerships with alcohol brands and investments in production facilities are undertaken to strengthen market position. Significant merchandising efforts are made around specialized retail stores and online

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