by Cannabis Beverage Market overview: The Cannabis Beverage Market consists of non-alcoholic beverages infused with cannabidiol (CBD) or tetrahydrocannabinol (THC) extracts. Cannabis infused beverages provide relaxation effects along with various health benefits such as reduced inflammation, pain relief, anxiety relief, and better sleep.
The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 61% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing legalization of cannabis across major countries for both medical and recreational purposes has propelled the growth of the Cannabis Beverage Market globally. According to the U.S. FDA, as of June 2022, the cannabis plant has been legalized for medical use in 38 U.S. states and recreational use in 19 states. The relaxation of regulations regarding cannabis has encouraged new product innovations, including infused beverages. Cannabis beverages are gaining popularity among consumers as an alternative to smoking due to its convenient consumption format and controlled dosing. This in turn is fueling the demand for cannabis infused drinks worldwide.
SWOT Analysis
Strength: Rising legalization of cannabis for both medical and recreational purposes in various countries is expected to drive the growth of the cannabis beverage market. Growing consumer preference for cannabis-infused beverages owing to their convenience and ease-of-consumption factors is also fueling the market growth.
Weakness: Stringent regulations pertaining to the use and distribution of cannabis along with stigma around cannabis use continue to challenge the growth of the cannabis beverage market. High product costs owing to expensive THC/CBD ingredients also remain a limiting factor.
Opportunity: Rising research and development activities centered around new product development using novel ingredients and flavors is widening the potential applications of cannabis beverages. Growing adoption among millennials and younger demographics also presents new avenues for market expansion.
Threats: Presence of alternative beverage types poses strong competition to cannabis beverages. Growing health awareness among consumers favors low-calorie beverages over cannabis-infused drinks.
Key Takeaways
The Global Cannabis Beverage Market Share is expected to witness high growth over the forecast period of 2023 to 2030. The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 61% over the forecast period 2023 to 2030.
North America is currently the dominant regional market for cannabis beverages due to widespread legalization in countries like the U.S. and Canada. The North American cannabis beverage market is projected to reach $332.9 million by 2030, growing at a CAGR of 58.9% from 2023 to 2030. The cannabis beverage market is expected to witness escalating demand, especially among millennial consumers in Europe and Asia Pacific region. Rising cannabis tourism along with growing medical applications of cannabis-infused drinks are anticipated to boost the growth of regional markets like Latin America and the Middle East & Africa over the forecast period.
Key players operating in the cannabis beverage market are Cargill Inc., Nu-Tek Food Sciences LLC, Koninklijke DSM N.V., Montana Indusrie Holding A.G., Angel Yeast Co. Ltd., Tate & Lyle Plc, and Innophos Holding Inc. Product innovation and strategic collaborations remain key strategies adopted by leading players to expand their market presence.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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