Cannabis Beverages Market

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Report Overview

The Global Cannabis Beverages Market size is expected to be worth around USD 28.6 Bn by 2033, from USD 1.7 Bn in 2023, growing at a CAGR of 32.6% during the forecast period from 2024 to 2033.

The cannabis beverages market is an emerging segment in the global food and beverage industry, gaining traction due to the increasing legalization of cannabis for medical and recreational use. These beverages, infused with cannabinoids such as THC and CBD, offer consumers a novel and socially acceptable way to consume cannabis without smoking or vaping. The market encompasses various product types, including alcoholic and non-alcoholic drinks, catering to a broad spectrum of preferences.

The market is characterized by innovation and diversification, with both start-ups and established beverage companies entering the space. Leading players are focusing on creating unique formulations, leveraging nanoemulsion technology to enhance cannabinoid bioavailability, and ensuring consistent dosing to meet consumer expectations.

Legalization remains the primary driver of the cannabis beverages market. As of 2023, over 20 countries had legalized medical cannabis, while recreational use was permitted in select regions such as Canada, parts of the United States, and Uruguay. This regulatory shift has encouraged significant investments in cannabis-infused products.

Changing consumer lifestyles and preferences also contribute to market growth. Health-conscious individuals seeking alternatives to alcohol are increasingly turning to cannabis beverages for relaxation without the adverse effects of traditional alcoholic drinks. In 2023, nearly 30% of cannabis beverage consumers reported using these products as a substitute for alcohol.

Advancements in technology have further propelled the market. The development of water-soluble cannabinoids has enabled the production of clear, shelf-stable cannabis drinks, enhancing their appeal. Moreover, increasing research on cannabinoids’ therapeutic benefits is driving demand in the wellness sector.

Non-alcoholic cannabis beverages are gaining significant traction, accounting for approximately 55% of the market share in 2023. These products cater to a broader audience, including those who avoid alcohol for health or cultural reasons. Additionally, functional beverages infused with CBD, marketed for their potential stress-relief and anti-inflammatory properties, are rapidly gaining popularity.

The growing role of e-commerce in cannabis product distribution is another notable trend. Online sales channels contributed nearly 25% of global cannabis beverage revenue in 2023, reflecting changing consumer purchasing behaviors.

The cannabis beverages market presents immense potential, driven by legalization, technological advancements, and shifting consumer preferences. Industry players focusing on innovation and compliance are well-positioned to capitalize on this lucrative and rapidly expanding segment.

Key Takeaways

Cannabis Beverages Market size is expected to be worth around USD 28.6 Bn by 2033, from USD 1.7 Bn in 2023, growing at a CAGR of 32.6%.
Non-Alcoholic segment held a dominant position in the cannabis beverages market, capturing more than a 67.4% share.
Cannabidiol (CBD) held a dominant market position in the cannabis beverages sector, capturing more than a 68.1% share.
Household segment held a dominant position in the cannabis beverages market, capturing more than a 58.1% share.
Mass Merchandisers held a dominant market position in the cannabis beverages market, capturing more than a 38.1% share.
North America dominated the cannabis beverages market, holding a significant 56.9% share and valuing approximately USD 0.9 billion.

Cannabis Beverages Business Environment Analysis

The cannabis beverages market operates within a dynamic and evolving business environment shaped by regulatory changes, consumer preferences, and technological advancements. Cannabis beverages, which include THC- and CBD-infused drinks, offer a modern and convenient alternative to traditional cannabis consumption methods. The business environment for this market is highly influenced by regional legalization trends, competitive dynamics, and advancements in product development.

The regulatory framework is a critical determinant in the cannabis beverages market. As of 2023, over 40 countries had legalized some form of cannabis, with varying degrees of restrictions on its recreational and medicinal use.

North America leads the market due to favorable regulations, with the United States and Canada collectively accounting for over 60% of global sales. Canada’s fully legalized cannabis sector provides an established framework for the commercialization of infused beverages, while U.S. sales continue to grow, especially in states like California, Colorado, and Illinois.

In Europe, the market is still emerging, with countries like Germany, the Netherlands, and Switzerland adopting medical cannabis laws and considering recreational legalization. The Asia-Pacific region is nascent but holds substantial growth potential due to large populations and growing medical cannabis adoption. By 2024, Asia-Pacific is projected to account for 12% of the market’s growth, driven by countries like Thailand and Australia.

In 2023, the global cannabis beverages market was valued at approximately USD 2.1 billion, growing at a robust rate due to increasing consumer demand for health-conscious and socially acceptable cannabis products.

Non-alcoholic cannabis beverages captured nearly 55% of the market share, reflecting a growing preference among consumers seeking alternatives to alcoholic drinks. Millennials and Gen Z constitute the largest demographic groups, with over 65% of purchases attributed to these age groups.

Consumers are increasingly inclined toward beverages that combine wellness benefits with convenience. CBD-infused beverages, known for their non-psychoactive therapeutic effects, are particularly popular among health-conscious individuals, accounting for 48% of product sales in 2023.

The cannabis beverages market is highly competitive, with startups and established beverage companies vying for market share. Key players are investing in nanoemulsion technology to enhance cannabinoid bioavailability, creating more effective and appealing products. By 2024, it is expected that 40% of new product launches will leverage water-soluble cannabinoid technologies to achieve improved stability and faster onset times.

The cannabis beverages market presents a dynamic business environment driven by legalization, innovation, and shifting consumer behavior. Companies that adapt to regulatory changes and prioritize product quality and safety are well-positioned for long-term success in this lucrative sector.

By Type

In 2023, the Non-Alcoholic segment held a dominant position in the cannabis beverages market, capturing more than a 67.4% share. This segment includes a variety of products such as cannabis-infused coffee, tea, and juice, appealing broadly to consumers looking for wellness benefits without the psychoactive effects associated with THC. The popularity of non-alcoholic cannabis beverages is driven by consumer interest in health and wellness trends, with many people choosing these beverages for their potential therapeutic benefits, including stress reduction and improved sleep.

The Alcoholic cannabis beverages segment, which includes products like cannabis-infused beers, wines, and spirits, also experienced growth, though at a slower pace compared to non-alcoholic options. These products are often targeted at consumers looking to combine the recreational effects of alcohol with the relaxing properties of cannabis. Despite their innovative appeal, the market share remains smaller, partly due to regulatory challenges and limited distribution channels.

Within the Non-Alcoholic bracket, cannabis-infused coffee and tea are particularly popular. These beverages offer a familiar way for consumers to integrate cannabis into their daily routines. The rise in consumption of cannabis coffee and tea is supported by the increasing availability of these products in cafes and stores, making them more accessible to the average consumer.

Meanwhile, cannabis-infused juice is another segment that has seen significant growth. These products are often marketed as health supplements, promising benefits such as antioxidant properties and enhanced relaxation without the psychoactive effects. As more consumers become aware of and open to the benefits of cannabis, the juice segment continues to expand, particularly in markets with liberal cannabis laws and a cultural tilt towards health and wellness.

By Component

n 2023, Cannabidiol (CBD) held a dominant market position in the cannabis beverages sector, capturing more than a 68.1% share. CBD’s non-psychoactive properties and its perceived health benefits have made it highly popular among consumers interested in wellness without the intoxicating effects of THC.

CBD-infused beverages, including water, tea, and energy drinks, have been particularly favored for their potential to relieve stress, reduce anxiety, and support overall health. This widespread consumer acceptance has been bolstered by increasing legalization and the destigmatization of cannabis-related products, which has encouraged major beverage companies and startups alike to expand their offerings in this segment.

Tetrahydrocannabinol (THC) infused beverages also form a significant part of the market. These products are typically chosen by consumers looking for the psychoactive effects associated with marijuana. THC beverages include varieties such as sodas, cocktails, and other concoctions, aiming to offer a different experience compared to traditional smoking or edibles. Despite regulatory challenges and the varied legal status of THC across regions, these beverages have gained traction among adults in legalized states, driven by consumer curiosity and increasing social acceptance.

By End-Use

In 2023, the Household segment held a dominant position in the cannabis beverages market, capturing more than a 58.1% share. This segment’s strong performance is largely driven by the increasing adoption of cannabis for personal use, particularly in regions where cannabis legalization has expanded.

Consumers are increasingly turning to cannabis-infused beverages as a discreet and convenient way to consume cannabis, either for medicinal purposes or for relaxation and wellness. Products such as CBD-infused teas, THC-infused sodas, and non-alcoholic cannabis beers have become popular household items, especially among those seeking alternatives to traditional alcoholic beverages and prescription medications.

Meanwhile, the HoReCa (Hotels, Restaurants, and Cafés) segment also shows significant growth potential, though it comprises a smaller portion of the market. This sector capitalizes on the experiential aspect of cannabis consumption, with more establishments offering cannabis-infused options to attract customers looking for unique dining and social experiences. Although regulatory hurdles limit the widespread adoption of cannabis beverages in this sector, progressive regions are beginning to see a rise in cannabis-friendly cafes and bars, showcasing innovative drink creations that incorporate both CBD and THC.

By Distribution Channel

In 2023, Mass Merchandisers held a dominant market position in the cannabis beverages market, capturing more than a 38.1% share. This segment benefits significantly from the extensive reach and accessibility of large retail chains, which are increasingly including cannabis-infused beverages in their inventories as legalization spreads. These retailers offer consumers the convenience of purchasing these products alongside their regular shopping, enhancing visibility and mainstream acceptance of cannabis beverages.

Specialty stores also play a crucial role, particularly in catering to informed consumers looking for a wider variety of cannabis beverage options and higher-quality or niche products. These stores often provide more detailed product information and educated staff, which can be crucial for consumers who are new to cannabis beverages or seeking specific effects.

Online retail is another rapidly growing distribution channel for cannabis beverages. The ease of browsing and purchasing from home, combined with the discretion provided by online shopping, makes it a preferred choice for many consumers. As e-commerce platforms continue to enhance their logistic and distribution systems, this segment is expected to see significant growth, supported by the increasing comfort of consumers with online shopping.

Key Market Segments

By Type

Alcoholic
Wine
Beer
Others

Non-Alcoholic
Coffee
Tea
Juice
Others

By Component

Cannabidiol (CBD)
Tetrahydrocannabinol (THC)

By End-Use

Household
HoReCa

By Distribution Channel

Mass Merchandisers
Specialty Stores
Online Retail
Others

Drivers

Widespread Legalization and Regulatory Reforms Drive Growth in Cannabis Beverages Market

One of the primary driving factors for the expansion of the cannabis beverages market is the widespread legalization of cannabis for both medical and recreational purposes across various regions. This regulatory shift has significantly broadened the consumer base for cannabis products, including beverages. As of 2023, numerous states in the U.S. and several countries around the world have enacted laws that permit the sale and consumption of cannabis, which has, in turn, facilitated the growth and diversification of the cannabis beverages sector.

Moreover, governmental bodies and regulatory agencies are increasingly supporting the cannabis industry by streamlining licensing processes and setting standards for product quality and safety. These efforts not only help protect consumers but also encourage new entrants into the market, fostering innovation and competition.

The rise in social acceptance of cannabis is another critical driver. As public perception shifts towards viewing cannabis as a viable therapeutic and recreational substance rather than a taboo, more consumers are willing to try cannabis-infused products. This societal shift is mirrored by the introduction of cannabis beverages in mainstream stores and online platforms, making them more accessible to a broad audience.

Restraints

Regulatory Hurdles and Market Fragmentation as Key Restraints in the Cannabis Beverages Market

One of the major restraining factors in the growth of the cannabis beverages market is the complex and often fragmented regulatory landscape across different jurisdictions. Despite progressive legalization in many regions, a significant number of countries and states still impose strict regulations on the production, distribution, and sale of cannabis-related products, including beverages. This inconsistency in laws not only complicates operational logistics but also limits market expansion, as manufacturers must navigate varying legal frameworks to enter different markets.

For instance, in the United States, cannabis remains classified as a Schedule I drug at the federal level, despite many states having legalized it for medical or recreational use. This federal prohibition restricts interstate commerce for cannabis products, forcing companies to establish separate operations in each state where cannabis is legal, thereby increasing costs and operational complexities.

Additionally, the approval process for new cannabis beverage products can be lengthy and costly, deterring new entrants and stifling innovation. For example, in Canada, where cannabis is legal at the federal level, Health Canada requires rigorous testing and approval for all cannabis products, which can delay product launches and increase development costs.

Another challenge is the banking and financial services restrictions in regions where cannabis is not federally legal. Many banks and financial institutions are hesitant to serve cannabis-related businesses due to the legal uncertainties, making it difficult for companies in the cannabis beverage sector to secure funding and financial services. This not only affects liquidity but also hampers the ability of businesses to expand and operate efficiently.

Opportunity

Expanding into New Geographic Markets: A Lucrative Opportunity for Cannabis Beverages

The expansion into new geographic markets represents a significant growth opportunity for the cannabis beverages sector. As more regions around the world begin to relax or change their laws regarding cannabis, the market for cannabis-infused beverages is poised to grow substantially. This expansion is not just limited to countries that are legalizing cannabis but also to areas where regulatory adjustments are making it easier to market and sell cannabis products.

For instance, recent legislative changes in parts of Europe and some Latin American countries have opened up new markets where cannabis products can be legally sold. This is particularly relevant as these regions have shown a growing acceptance of cannabis for both medical and recreational use. In Europe, countries like Germany and the Netherlands have been at the forefront of such changes, increasingly allowing the sale of cannabis products. This has opened up a new, lucrative market for cannabis beverage companies looking to expand their reach beyond North America.

Moreover, the Asia-Pacific region presents a significant untapped market with countries like Thailand and South Korea, which have begun to adopt more liberal cannabis policies. The Asia-Pacific market is particularly enticing due to its large population and growing middle class, which could lead to increased consumer spending on wellness and recreational products, including cannabis beverages.

This geographic expansion is supported by increasing international acceptance and a growing consumer base that is curious about cannabis products. As these new markets develop, companies that can navigate the complex regulatory environments and establish strong local partnerships will likely see substantial growth. The global nature of the cannabis market means that companies will need to adapt their products and strategies to meet the varied tastes and regulatory requirements of each new market they enter.

Trends

Personalization and Health-Oriented Innovations in Cannabis Beverages

One of the most significant trends in the cannabis beverages market is the move towards personalized and health-oriented products. As consumers become more health-conscious, they are seeking beverages that not only provide the recreational or medicinal benefits of cannabis but also contribute to overall wellness. This trend is reflected in the increasing popularity of cannabis beverages that are integrated with other health-oriented ingredients, such as vitamins, probiotics, and adaptogens.

Cannabis beverage companies are capitalizing on this trend by developing products tailored to specific health benefits, such as improved sleep, enhanced focus, or anxiety relief. For example, some brands are introducing CBD-infused teas combined with herbs like chamomile or valerian that are traditionally used for relaxation and sleep improvement. These products are marketed not just for their cannabis content but for their holistic health benefits.

Additionally, the customization of cannabis beverage products is becoming more prevalent. Advances in technology allow consumers to customize the dosage and combination of cannabinoids (CBD and THC) to suit their personal preferences and health needs. This can involve adjustable-dose products or formulations designed for different times of the day, such as energizing morning beverages or relaxing evening drinks.

The shift towards these health-oriented and customizable cannabis beverages is also encouraged by the changing regulatory landscape, which increasingly supports the integration of cannabis into health and wellness products. As regulations become clearer and more standardized, manufacturers are able to innovate with greater confidence in how these products will be received by both regulators and the market.

Regional Analysis

In 2023, North America dominated the cannabis beverages market, holding a significant 56.9% share and valuing approximately USD 0.9 billion. This region’s market leadership is largely driven by the widespread legalization of cannabis across many U.S. states and Canada, coupled with a well-established cannabis culture and advanced production infrastructure. Consumers in North America have shown a strong preference for innovative cannabis beverage products, supported by robust retail networks and sophisticated marketing strategies.

Europe, while trailing behind North America, is experiencing steady growth in the cannabis beverages sector. Regulatory changes and increasing acceptance of cannabis for both medical and recreational use are gradually transforming the market landscape. Countries such as Germany, the Netherlands, and Switzerland are pioneering in terms of both market development and legislative advancements, facilitating easier access to cannabis products.

The Asia Pacific region presents a burgeoning market with vast potential, led by changing attitudes and regulatory reforms in countries like Thailand and South Korea. However, the market is still nascent, with stringent regulations limiting rapid growth compared to Western counterparts.

In Latin America, the cannabis beverage market is gradually expanding, with countries like Uruguay and Colombia leading in regulatory reforms. These changes are paving the way for growth in cannabis-related research, cultivation, and consumption.

The Middle East & Africa region remains the most underdeveloped segment of the global cannabis beverages market, primarily due to strict regulatory environments. However, there is a growing interest in the medicinal aspects of cannabis, which could potentially open up new avenues for market growth in specific countries within these regions.

Key Regions and Countries

North America
US
Canada

Europe
Germany
France
The UK
Spain
Italy
Rest of Europe

Asia Pacific
China
Japan
South Korea
India
Australia
Rest of APAC

Latin America
Brazil
Mexico
Rest of Latin America

Middle East & Africa
South Africa
Saudi Arabia
UAE
Rest of MEA

Key Players Analysis

The cannabis beverages market is supported by several key players, each contributing to the sector’s growth with a range of innovative products. Canopy Growth Corporation and Aurora Cannabis Inc. are among the most prominent players in North America, offering cannabis-infused drinks in various formats such as sparkling waters, teas, and sodas.

These companies have leveraged their significant resources and strong distribution networks to capture a large portion of the market. Canopy Growth, through its subsidiary, has seen notable success with its brand of cannabis-infused beverages, while Aurora continues to expand its portfolio with a focus on consumer-friendly, health-oriented products.

Another significant player, Tilray, has made notable strides in the cannabis beverage market, particularly through strategic partnerships and acquisitions. The company focuses on expanding its footprint across North America and Europe, where increasing legalization is driving growth.

Additionally, BellRock Brands, known for its Dixie Elixirs, offers a diverse array of cannabis-infused beverages, making it a key competitor in the segment. Other players like Keef Brands, Mary Jones, and Cronos Group also contribute to the competition, offering a mix of THC and CBD-based products. These companies focus on creating drinks that appeal to a broad demographic, from those seeking wellness benefits to recreational consumers.

The growing presence of specialized companies like CANN Social Tonics and FABLE highlights a trend towards niche products that emphasize unique flavors and functional benefits, such as stress relief or relaxation.

With the increasing acceptance of cannabis and the evolving regulatory landscape, the cannabis beverage market is becoming increasingly competitive, with both large corporations and smaller, more specialized brands vying for market share. As the market matures, these companies are likely to continue innovating, with a focus on quality, variety, and consumer safety.

Top Key Players

Aphria Inc
ARTET, LLC
Aurora Cannabis Inc.
BellRock Brands (Dixie Brands)
CANN SOCIAL TONICS
CannTrust Holdings Inc.
Canopy Growth Corporation
Cronos Group Inc.
FABLE
GW Pharmaceuticals, plc.
Keef Brands
Mary Jones
MedReleaf Corp.
OrganiGram Holdings
Teapot
Tilray
VCC BRANDS (CQ Drinks)
VIVO Cannabis Inc.

Recent Developments

In 2023, Tilray (Aphria) saw substantial growth in cannabis-infused products, generating approximately USD 300 million in revenue from its beverage segment.

By 2024, ARTET has been increasing its distribution channels, focusing on premium retailers and online platforms.

Report Scope

Report Features
Description
Market Value (2023)
USD 1.7 Bn
Forecast Revenue (2033)
USD 28.6 Bn
CAGR (2024-2033)
6.0%
Base Year for Estimation
2023
Historic Period
2020-2022
Forecast Period
2024-2033
Report Coverage
Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments
Segments Covered
By Type (Alcoholic, Wine, Beer, Others, Non-Alcoholic, Coffee, Tea, Juice, Others), By Component (Cannabidiol (CBD), Tetrahydrocannabinol (THC)), By End-Use (Household, HoReCa), By Distribution Channel (Mass Merchandisers, Specialty Stores, Online Retail, Others)
Regional Analysis
North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, Australia, Singapore, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA
Competitive Landscape
Aphria Inc, ARTET, LLC, Aurora Cannabis Inc., BellRock Brands (Dixie Brands), CANN SOCIAL TONICS, CannTrust Holdings Inc., Canopy Growth Corporation, Cronos Group Inc., FABLE, GW Pharmaceuticals, plc., Keef Brands, Mary Jones, MedReleaf Corp., OrganiGram Holdings, Teapot, Tilray, VCC BRANDS (CQ Drinks), VIVO Cannabis Inc.
Customization Scope
Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements.
Purchase Options
We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
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