Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Cannabis Beverages market.
Trusted Business Insights presents an updated and Latest Study on Cannabis Beverages Market 2019-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Cannabis Beverages market during the forecast period (2019-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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The global cannabis beverages market size was USD 173.76 million in 2018 and is projected to reach USD 2,050.44 million by 2026, exhibiting a CAGR of 37.13% in the forecast period.
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Cannabis is a genus of flowering plant within the hemp family. Some of the prominent active principles present in the cannabis are tetrahydrocannabinol (THC), cannabidiol (CBD), and cannabinol, and terpenes. Cannabis is a well-known consuming plant owing to its accepted therapeutic and medicinal benefits.
Cannabis has witnessed a rapid surge in terms of mass consumer appeal around the world. The recreational use is far greater than the medicinal utilization, taking into consideration the illegal consumption. The global cannabis beverages market is expected to gain momentum by increasing penetration of cannabis in untapped mainstream consumer market. Legalization of cannabis is gaining impetus worldwide which is primarily fueled by increasing recognition of cannabis possessing a range of legitimate medicinal benefits and therapeutic applications.
It should thus be understood that the medical benefits of cannabis are playing a pivotal role in driving the legislation wave, and this is undoubtedly having a positive trickle-down effect on recreational utilization of cannabis. The recreational use of cannabis is expected to be driven by mainstreaming of consumption-related experience.
Cannabis-based Edibles -The Ideal Substitute for Smoking Cannabis is to Support the Growth of the Cannabis Beverages Market
Cannabis consumers are no longer limited to smoking flower with joints, pipes or bongs, but have their choice of an increasing variety of products, including concentrates, and infused products. The beverages industry in itself is undergoing fundamental transformation with the ingredients and additives. The consumers, especially in the developed markets of North America and Europe are constantly shaping the category amidst all-natural””, “”chemicals-free”” and with “”recognizable and herbal formulations”” trends and developments.
The infused drinks have emerged as a flag-bearer category within the entire beverage space, the category is not only expected to be disruptive but also will drive the “”innovation with formulations”” concept in the years to come.
Infused Beverages are Trending in Global Marketplace
Majority of cannabis-infused consumables that made their first market appearance have been baked commodities such as cookies, brownies or confections such as candy bars and gummy bears which are generally viewed as unhealthy. Beverages have emerged as the most accessible way for consumption of THC as far as the whole gamut of edibles is concerned. Moreover, Cannabis-based beverages are witnessing robust popularity owing to its superior functional benefits, portion-controlled doses, ease of administration and availability.
Cannabis beverages are primarily witnessing growing popularity amidst the trendy and dynamically evolving infused-beverages space. Beverages are one of the suitable vehicles/matrices for delivering the active components of cannabis viz. THC, CBD, cannabinol, and terpenes. The growth of cannabis-infused consumables is witnessing enormous leaps amidst a rapidly growing trend of innovation and product development in the sector.
The beverages boom, as witnessed in off-trade sales channels such as restaurants, clubs, lounges, etc. is further expected to facilitate the sales of customized cannabis-infused beverages. Although THC has remained the major attraction among the consumers for experiencing the euphoric high, the cannabis beverages market is witnessing dramatic evolution with the robustly growing popularity of CBD-infused beverages. There is a robust demand for healthy edibles within the cannabis beverages industry which has further pushed the sales of CBD-infused drinks. Thus the high demand for cannabis beverages is also providing a radical shift to the overall cannabis beverages market shares.
By Type Analysis
Non-alcoholic Cannabis-Infused Drinks to Emerge as a Fastest-growing Category
The entire market of alcoholic beverages faces the risk of disruption given the cannabiss ability to replicate the effect of alcohol with zero calories, and with established health benefits. The current market trend in beverages space is also resonating favorably for infused products and herbal formulations. The global marketplace has witnessed robust popularity of low and no-alcohol drinks that have reduced calories along with nutritional superiority. The emergence of marijuana or cannabis beverages category is primarily driven by private-label brands and start-ups which are intensively capitalizing on the therapeutic benefits of cannabis and developing products that facilitate cannabis consumption in social, widely accepted, and a healthier way.
By Distribution Channel Analysis
Online Retail is one of the Leading Sales Channel for Cannabis Beverages -Specialty Stores and On-Trade Channels to Gain Greater Sales Traction in Coming Years
The cannabis beverages market has witnessed rapid demand over e-commerce channels which offer enhanced convenience, privacy, and autonomy regarding the choice of the products. Cannabis has witnessed greater sales from licensed dispensaries which opens up a plethora of opportunities for specialty stores to display innovative and flavorful beverages infused with active principles from cannabis.
Moreover, such distribution channels are expected to act as one-stop-for-all regarding cannabis-based edibles which are set to gain greater growth trajectory amidst rapidly spreading legislation wave. Although the hectic lifestyles of millennials will make them retain the online channels for the purchase of cannabis beverages.
“”North America Market is a Leading Region; Asia Pacific Cannabis Beverages Market is Projected to Witness Fastest Growth””
North America is at the forefront of cannabis-infused beverages sector, spearheaded by the U.S. where the functional beverage market is exhibiting exponential growth trajectory. The cannabis-infused products, especially the category of hemp-cannabidiol (hCBD), received the major thrust after the passage of the 2018 U. S. Farm Bill which legalized hemp and hemp-derived CBD products nationwide. North America generated a revenue of USD 164.62 Million in 2018 and is anticipated to emerge dominant in the global market during the forecast period.
Health and wellness trend is resonating more strongly in the beverages industry which, will, in turn, aid the cannabis beverages market growth. The manufacturers and food processors are developing a plethora of drinks containing bioactive principles and compounds. The key players in the market are embarking on their established distribution channels to further their product penetration.
Cannabis-based beverages have witnessed an upsurge in the developed markets of the U.S. and Canada amidst a continued decline in alcohol consumption and smoking. The gradual uptick in legalized recreational use of cannabis has sparked the interest of manufacturers to capitalize on cannabis consumables. Beverages exhibiting clean-label traits are expected to occupy center-stage in the foreseeable future.
North America Cannabis Beverages Market Size, 2018
The cannabis beverages market in the U.S. is expected to play a pioneering role in influencing the purchasing patterns and variety of such beverages across the globe. It is important to note that cannabis remains illegal in the U.S., at the federal level. The steep decline in the consumption of alcoholic drinks in the U.S has prompted key giants to venture out in cannabis space. Beer companies are capitalizing on developing a variety of flavorful THC and CBD infused drinks.
Canada legalized the adult use of cannabis in 2018, according to Health Canada; the sales of cannabis beverages is expected to begin in mid-December of 2019. The important legislation in these regards, the amended Cannabis Act will come into force in October 2019.
The legal status of Cannabis-based edibles remains unclear in the European Union, although medical cannabis is legal in some of the major markets of the region such as Germany, Italy, France, etc. The use of cannabis is decriminalized or made legal in major parts of South and Central America, as well as Africa. Australia is leading the legislation wave for cannabis in the Asia Pacific region.
INDUSTRY KEY PLAYERS
“”Dynamic, Competitive, Nascent and Untapped Market Structure of Global Cannabis Beverages Space””
The cannabis beverages market is witnessing intensive investments by key giants in the production and supply of the raw materials for innovative and novel beverages. Recently constellation brands has invested the amount in the tune of USD 4 billion in Canadian cannabis producer Canopy Growth.
Similarly, the dynamism and competitiveness of the industry have also led to increased mergers and acquisition activities, the idea is to utilize the combined expertise of merged synergies that can better prepare companies to sail through the technological and regulatory-level uncertainties. For instance, Labatt, a subsidiary of AB InBev has partnered with Tilray, another Canadian cannabis beverages producer, to research into non-alcoholic beverages infused with THC and CBD.
CANNABIS BEVERAGE MARKET COMPANIES
- Aurora Cannabis
- Aphria Inc.
- Canopy Growth Corporation
- MedReleaf Corp.
- Cronos Group Inc.
- GW Pharmaceuticals, plc.
- CannTrust Holdings Inc.
- VIVO Cannabis Inc.
- OrganiGram Holdings
The perceivable and validation-based benefits with the consumption of cannabis and its essential role in therapeutic applications is a significant growth engine of this market. Legal cannabis consumption is mostly a North American phenomenon as of now and is expected to remain so during the forecast period. However, the cannabis beverages market in Europe is expected to be the next major hotspot in the years to come.
An Infographic Representation of Cannabis Beverages Market
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The report provides qualitative and quantitative insights on the global cannabis beverages industry and detailed analysis of cannabis beverages market size and growth rate for all possible segments in the market. The market is segmented by type, application, and geography. Based on type, This market is categorized into flower/bud and concentrates. The global market is also segmented by application into Medical, Recreational (which further includes Edibles and Topicals) and Industrial Hemp. Geographically, the global cannabis beverages industry is segmented into four major regions, which are North America, Europe, Asia Pacific, Rest of the World. The regions are further categorized into countries.
Along with this, the report provides an elaborative analysis of the cannabis beverages market dynamics and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key industry trends.
Report Scope & Segmentation
By Distribution Channel
- Mass Merchandisers
- Specialty Stores
- Online Retail
- North America (U.S., Canada, and Mexico)
- Europe (Germany, France, Italy, Spain, Czech Republic, Belgium, and Rest of Europe)
- Rest of the World (Australia, Brazil, and Rest of the World)
In May 2019, – Caliva, one of the largest vertically integrated cannabis companies in California, acquired Zola, the maker of plant-powered beverages, to expand into the cannabis and hemp-based CBD (HCBD) beverage space.
In April 2019, A group of alcohol and cannabis companies in Canada formed The Cannabis Beverage Producers Alliance to push for industry reforms once marijuana edibles are legalized in Canada.
In March 2019, The Tinley Beverage Company Inc. completed its planned expansion of the bottling facility in the Coachella Valley, California (the Phase 2 Facility) to produce cannabis-infused beverages.
In December 2018, Anheuser-Busch InBev and Tilray Inc entered into a $100-million joint venture to research cannabis-infused non-alcoholic drinks for the Canadian market.
In September 2018, CannTrust inked a strategic partnership with Breakthru Beverage Group to establish a cannabis-focused sales brokerage company.
In August 2018, Hexo Corp., a licensed producer of cannabis-based in Quebec, Canada, entered a joint venture with Molson Coors Canada to produce CBD-infused beverages
Quick Read Table of Contents of this Report @ Cannabis Beverages Market Size, Share & Industry Analysis, By Type (Alcoholic and Non-alcoholic), Distribution Channel (Mass Merchandisers, Specialty Stores, Online Retail, and Others), and Regional Forecast 2020 – 2029-(Includes Business Impact of COVID-19)
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