Cannabis Beverages Market Analysis Report By Type, By Component And Segment Forecasts From 2019 To 2025

Industry Insights

The global cannabis beverages market size was accounted for USD 901.8 million, in 2018 and is projected to grow at the CAGR of 17.8% over the forecasted period, 2019 to 2025. The increasing demand for health & wellness drink is boosting the market growth. Moreover, the presence of accurate content of cannabis and low sugar in the product is another key factor that is expected to propel the demand for the product. Additionally, the increasing acceptance of cannabis for medical purposes in various countries is expected to increase the production of cannabis beverages.

Cannabis drinks help treat cancer, pain, and neurological disorders. Further, the increasing interest of consumers for cannabis edible is expected to indirectly drive the cannabis beverage market growth. Consumers are shifting from smoking cannabis to tinctures, chocolates, edibles, and other beverages. Cannabis beverages are replacing Cannabis-infused drinks like cookies, brownies, and chocolates which are not good for the health. All these key factors are anticipated to foster the demand for the product in the next few years.

Cannabis drinks have high demand from cafes, restaurants, lounges, and clubs which in turn is projected to boost the market growth. the changing consumer preference and decline in the sale of alcoholic drinks is increasing beverage consumption. Moreover, the alcohol companies are investing in R & D for developing cannabis-based beverages. For example, Heineken’s California beer brand launched Hi-Fi hops with zero carbohydrates, zero calories. They are also infused with the cannabidiol (CBD), and tetrahydrocannabinol (THC). For instance, Constellation Brands has partnered with Canopy Growth in 2017. These strategic initiatives are anticipated to bolster market growth.

The cannabis-infused drinks market is growing with the introduction of new products. This demand is highly attributed to the millennial population. In 2017, according to Yahoo News, in the U.S., over 55.0 million younger adults were major consumers of cannabis-infused products which include cannabis beverages. Cannabis consumption is legal in the U.S. market and has impacted the growth of beer and wine products.

Component Insights

The components are bifurcated into Cannabidiol (CBD) and Tetrahydrocannabinol (THC). Tetrahydrocannabinol has high demand among the young population for recreational and refreshment purposes. Moreover, the increasing demand for the product in therapeutic incidents is anticipated to proliferate the market growth in the coming few years.

CBD cannabis drinks are projected to grow at the highest CAGR over the forecast period. The CBD components have a non-psychoactive feature which is expected to surge the demand for the product. The product is also useful in medical treatment. CBD drinks help in treating anxiety, chronic pain, and nervous disorders. Thus, these factors are expected to foster the demand for the product.

Type Insights

The cannabis beverages market is bifurcated into non-alcoholic, and alcoholic based on type. The growing participation of companies in alcohol brewing for infusion of beer with CBD and THC. The growth of the market is mainly attributed to the people who consume cannabis and alcoholic drinks. Moreover, the growing preference among cannabis consumers for spirits and beer is anticipated to bolster the product demand in the next few years.

The non-alcoholic cannabis drink is projected to grow at the highest CAGR rate from, 2019 to 2025. The new consumers are willing to drink non-alcoholic cannabis drinks owing to their health benefits. The consumer who looks for non-alcoholic drinks tends to consume beverages infused with cannabis such as elixirs, drops, teas, energy drinks, and lemonade. The manufacturers are focusing on the female population owing to its high demand. Furthermore, the alcohol companies are also spending high to produce nonalcoholic drinks. For instance, in 2017, Hexo has partnered with Molson Coors.

Regional Insights

In 2018, North America held the largest market share in the overall market. Cannabis use is legal for recreational and medical purposes in the U.S. Canada has also made the use of cannabis-infused drinks a legal product. According to the national conference of the legislature, around 33 states in the U.S. have approved the use of cannabis for its applications. Additionally, 13 states have been allowed to utilize high CBD and low THC products.

Europe is anticipated to grow at a significant rate of CAGR during the forecasted period. According to the cannabis trade association, in the U.K., the number of CBD consumers' has grown from 125,000 to 250,000 in the year 2017. The manufacturers in the market also focus on launching new products. For example, Cloud 9 and CBD Ultra have introduced the first beer brewed session. In the Netherlands, there is high demand for cannabis-infused products in restaurants and cafes. In the countries such as Uruguay, and Australia the cannabis is legalized, thus it is expected to propel the demand for the product.

Cannabis Beverages Market Share Insights

Leading players in the market include The Alkaline Water Company; New Age Beverages Corporation; Koios Beverage Corporation; Phivida Holdings Inc.; Dixie Brands Inc.; VCC Brand; Hexo Corp; Keef Brand; Canopy Growth; and Aphria. Furthermore, key players in the market are focusing on mergers & acquisitions and new product launches as a part of their strategy to increase their revenue.

For example, in 2017, Constellation brands have partnered with Canopy Growth to develop new products. Similarly, in 2019, Alkaline water company has acquired AQUAhydrate to increase its distribution network.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global cannabis beverages market report on the basis of type, component, and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Alcoholic
    • Non-Alcoholic

• Component Outlook (Revenue, USD Million, 2015 - 2025)
    • Cannabidiol (CBD)
    • Tetrahydrocannabinol (THC)

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • Germany
        • U.K.
        • Netherlands
    • Rest of the World (RoW)