by The Cannabis Beverage Market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 2.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Cannabis beverages are prepared using cannabis extracts, THC, and CBD oil. They provide therapeutic benefits such as reducing stress and anxiety, managing pain, and inducing relaxation. They are available in various flavors and forms including juices, bottles, cans, and fizzy drinks. The rising popularity of cannabis drinks owing to the alternate consumption experience compared to smoking is driving the market growth.
Market key trends:
Cannabis beverages are gaining social acceptability owing to increasing legalization of cannabis in various countries and states. For instance, recreational use and commercial sales of cannabis are legal in Canada and 11 US states as of 2022. Moreover, according to a study by Gallup, over two-thirds of Americans now support legalizing marijuana usage. The growing public acceptance has encouraged mainstream retailers to invest in the market. Additionally, innovating product portfolios with varied THC/CBD contents as well as flavors/formats is expanding the reach to a wider consumer segment. Continuous advancements in extraction technologies are further enabling consistent dosing and standardized experience.
Porter’s Analysis
Threat of new entrants: The legalization of recreational and medical cannabis and high demand of cannabis beverages have attracted many new players in the market. However, high capital requirements for starting production facilities and brand building pose barriers for new entrants.
Bargaining power of buyers: The bargaining power of buyers is moderate given the availability of substitutes and presence of many established brands. However, customized offerings and brand loyalty have provided buyers limited bargaining power.
Bargaining power of suppliers: The suppliers of raw materials like cannabis and other ingredients have considerable bargaining power given the dependence of beverage producers on a consistent supply of quality ingredients.
Threat of new substitutes: The threat of substitutes is moderate as other consumable forms of cannabis like edibles and concentrates compete for the same group of consumers. However, distinct product formulation and branding have helped cannabis beverages carve a niche.
Competitive rivalry: Intense as major players compete on the basis of product quality, price, innovation, and brand positioning.
SWOT Analysis
Strengths: Wide product offerings, innovative flavors, effective marketing campaigns, established brand equity.
Weaknesses: Regulatory challenges across jurisdictions, requirement of specialized production facilities, premium pricing limiting mass appeal.
Opportunities: Favorable laws and regulations, medicinal applications, new geographic markets, expanding product categories.
Threats: Stringent regulations, public stigma around cannabis, health concerns, dominance of illicit markets.
Key Takeaways
The Global Cannabis Beverage Market is expected to witness high growth, exhibiting CAGR of 2.2% over the forecast period, due to increasing legalization of cannabis across regions. North America dominates the market currently due to early legalization in Canada and certain U.S. states. However, Europe and Latin America are expected to offer lucrative opportunities during the forecast period.
Regional analysis: North America currently dominates the global cannabis beverage market, accounting for over 40% revenue share in 2023. Favorable regulations in Canada and various U.S. states have propelled the demand. Europe is forecast to witness the fastest growth at a CAGR of 26% during the forecast period due to growing medicinal applications and support for CBD products. Latin America presents significant prospects with several countries legalizing medicinal cannabis.
Key players operating in the Cannabis Beverage market are 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. Major players compete on the basis of product quality, flavors, effective branding and promotional campaigns to strengthen their market positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
