The Cannabis Beverage Market is estimated to be valued at US$ 364.8 Million In 2021 and is expected to exhibit a CAGR of 22.5% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
The Cannabis Beverage Market encompasses a wide range of non-alcoholic beverages infused with cannabis extracts. These beverages are gaining popularity due to the increasing acceptance of cannabis for medicinal and recreational purposes. The market offers various products such as CBD-infused water, THC-infused tea, cannabis-infused soda, and many more. These beverages provide consumers with the benefits of cannabis in a convenient and socially acceptable format, making them an attractive alternative to other consumption methods.
The Cannabis Beverage Market is driven by two key factors. Firstly, the increasing acceptance of cannabis for its potential health benefits, including pain relief, stress reduction, and improved sleep quality, is driving the demand for cannabis-infused beverages. Consumers are turning to these products as a natural and convenient way to incorporate cannabis into their lifestyle. Secondly, the growing legalization opportunities for cannabis in various regions are creating a favorable regulatory environment for the development and sale of cannabis beverages. This has led to the emergence of new players in the market and the expansion of existing players to capitalize on this growing demand. Overall, these drivers are expected to fuel the growth of the cannabis beverage market in the coming years.
The Cannabis Beverage Market can be segmented based on type and distribution channel. Based on type, the market can be divided into alcoholic and non-alcoholic beverages. Non-alcoholic beverages dominate the market segment due to the rising trend of health-conscious consumers opting for healthier alternatives. Additionally, the increasing number of consumers who prefer marijuana-infused products without the side effects of alcohol has boosted the demand for non-alcoholic cannabis beverages. Therefore, the non-alcoholic segment dominates the cannabis beverage market.
Political: The legalization of cannabis is a major political factor impacting the market. Countries and states legalizing the recreational and medicinal use of cannabis provide opportunities for the cannabis beverage market to thrive.
Economic: The economic factor plays a crucial role in the cannabis beverage market as it determines the affordability and consumption patterns of the target customers. The growing disposable income and increasing consumer spending on recreational products contribute to the market’s growth.
Social: The social factor involves changing consumer preferences and attitudes towards cannabis consumption. The increasing acceptance of cannabis-infused products, driven by a shift in societal norms and reduced stigma, has created a favorable environment for the market’s growth.
Technological: Technological advancements in cannabis extraction and infusion techniques have revolutionized the production of cannabis beverages. Innovations such as water-soluble cannabinoids and advanced filtration processes have improved the taste, stability, and bioavailability of cannabis-infused beverages.
The global cannabis beverage market is expected to witness high growth, exhibiting a CAGR of 22.5% over the forecast period (2022-2030), primarily due to the increasing legalization of cannabis and the rising preference for healthier alternatives among consumers. The market size for 2021 was estimated to be US$ 364.8 million.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the cannabis beverage market. This can be attributed to the legalization of recreational cannabis in several states in the United States and the growing acceptance and demand for cannabis-infused beverages in the region.
Key players operating in the cannabis beverage market include 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. These players are focusing on product innovation, strategic partnerships, and geographical expansion to gain a competitive edge in the market.
- Source: Coherent Market Insights, Public sources, Desk research
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