The global cannabis beverages market size was estimated to be US$ 1.2 billion in 2021 and is expected grow at a CAGR of 15% between 2023 to 2032.
The global cannabis drinks market is currently very fragmented due to the prevalence of multiple small and medium-sized businesses. The legalization of marijuana in Canada has resulted in cannabis businesses operating in the medicinal and recreational domain. There is a surge in legalization of marijuana globally and this should eradicate the illicit market and benefit the government by increasing tax income from legal marijuana sales.
Additionally, there is a steady increase in popularity of healthy alternatives to sweetened carbonated drinks that will bolster demand for cannabis beverages. Legalization of marijuana has also affected sales of alcoholic beverages. Therefore, many alcoholic companies are investing in marijuana-infused beverages.
The popularity of cannabis beverages is increasing as more customers are opting for non-alcoholic and less harmful alternatives. Even marijuana users have started favoring marijuana drinks to smoking and ingestion of marijuana-infuse brownies, cookies, chocolates and confectionaries. There is also an increase in sales due to availability of more distribution channels such as cafes, clubs, restaurants and hotels.
There is a gradual shift in cannabis consumers from smoking in pipes, joints and bongs to products such as edible concentrates and beverages. Consumers in North America and Europe are coming out with all natural and chemical free cannabis based drinks that will boost this market in the forecasted period.
There is a boom in the beverages industry as more and more cannabis serving restaurants, clubs and cafes will propel sales of customized cannabis infused beverages. A surge in demand for healthy cannabis infused drinks for experiencing euphoric high among users is seen.
Due to imposition of strict lockdowns and social distancing measures by governments across the world, markets were closed and eating out trends discontinued. This resulted in increased stress, panic-buying and stockpiling of cannabis infused products. Moreover, governments declared cannabis retail stores and dispensaries as essential which bolstered this market growth.
Cannabis products are still illegal to sell and consume in many developing as well as developed economies. Furthermore, consumers in these countries are not aware of health benefits of cannabis therefore impeding the market growth.
Cannabis Beverages Market Share Analysis, by Geography (2022)
The major players operating in the cannabis beverage market are Dixie Brands Inc., Phivida Holdings Inc., Hexo Corp, The Alkaline Water Company, Canopy Growth Corporation, Koios Beverage Corporation and others.
Market Segmentation:
By Type
By Distribution channels
By Geography
The global cannabis beverages market is estimated to expand at a CAGR of 15% through 2032.
Consumers in North America and Europe are coming out with all natural and chemical free cannabis based drinks that will boost this market in the forecasted period.
There is a steady increase in popularity of healthy alternatives to sweetened carbonated drinks that will bolster demand for cannabis beverages.
Based on type, the cannabis beverages market is segmented into Alcoholic and Non-alcoholic.
Key cannabis beverages market players are Dixie Brands Inc., Phivida Holdings Inc., Hexo Corp, The Alkaline Water Company, Canopy Growth Corporation, Koios Beverage Corporation and others.
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