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Cannabis Beverages Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global cannabis beverages market size was valued at USD 9.3 billion in 2022 and is projected to expand at a CAGR of 17.1% from 2023 to 2030. The growing demand for cannabis beverages is primarily attributed to the increasing legalization of marijuana across the world. Furthermore, the growing adoption of cannabis beverages as an alternative to alcoholic beverages is further driving the growth of the market.
The emergence of cannabis-infused beverages has gained immense popularity among consumers due to its low-calorie count, fewer health risks, and its ability to deliver various flavors. Besides, the increasing number of innovative products in the market is further propelling the growth of the market. For instance, in November 2021, High Times Holdings launched the POT-LUCK line of ready-to-drink beverages. The product is available in three flavors: Blueberry Lavender Lemonade, Pineapple Coconut Mango, and Apple Honey Spice.
The increasing trend of premiumization in the market is also driving the demand for cannabis beverages. The growing demand for cannabis-infused beverages has led to the introduction of various premium products with complex flavors. For instance, in November 2021, Lagunitas released its Hi-Fi Hops, which is a cannabis-infused sparkling water. The beverage is available in two flavors, namely, Mandarin & Lemon and Tropic & Hoppy.
The convenience of buying and consuming cannabis beverages is also driving the market growth. The increasing availability of cannabis beverages through legal channels such as dispensaries, cannabis stores, and online platforms is driving the market growth. Moreover, the increasing number of collaborations between cannabis companies and leading beverage companies for launching cannabis-infused beverages has further boosted the market growth. For instance, in April 2021, Molson Coors Beverage Company and HEXO Corporation entered into a joint venture to manufacture non-alcoholic, cannabis-infused beverages for the Canadian market.
Furthermore, the rising number of product launches from key players is also boosting the market growth. Several companies are launching new products to cater to the changing needs and preferences of consumers. For instance, in December 2021, Two Roots Brewing Co. launched a new line of non-alcoholic, cannabis-infused craft beers. The new products are available in four flavors such as New West IPA, Blonde Lager, Wheat Ale, and Stout.
Product Insights
The edibles segment accounted for the largest share of the cannabis beverages market in 2020. Cannabis edibles are gaining popularity among consumers as it contains a range of flavors, such as chocolate, gummies, and cookies. Furthermore, the availability of cannabis edibles in a wide variety of flavors, shapes, and sizes is driving the growth of the market. According to an article published by Brightfield Group, in November 2019, cannabis-infused edibles are expected to be the largest product segment in the U.S. cannabis market.
The ready-to-drink segment is expected to expand at the fastest CAGR over the forecast period, owing to the increasing demand for convenience and on-the-go consumption. Ready-to-drink cannabis beverages offer a convenient way to consume cannabis without the need for brewing or preparing cannabis-infused beverages. In addition, ready-to-drink cannabis beverages are relatively easier to manufacture, due to the presence of a ready-to-use beverage base, which is expected to bolster the demand for these products.
Distribution Channel Insights
The offline segment held the majority share of the cannabis beverages market in 2020. This is attributed to the presence of a vast array of products in physical stores and the convenience of buying from them. Moreover, physical stores enable customers to experience the product before buying it and also provide an opportunity to compare the different options available.
On the other hand, the online segment is expected to register the highest CAGR of 18.5% over the forecast period. This growth is majorly attributed to the convenience of buying from online stores and the wide range of options available. Moreover, the growing popularity of e-commerce websites and mobile applications for making purchases is anticipated to spur the segment growth. Additionally, companies are launching their own websites and apps to make their products easily accessible to customers, thus driving the segment growth. For instance, in October 2020, Canopy Growth Corporation launched an online store in the US to provide customers with a wide array of cannabis-infused beverages.
Type Insights
The non-alcoholic segment is anticipated to expand at the highest CAGR of 18.7% over the forecast period. The increasing demand for cannabis-infused beverages among health-conscious consumers, owing to the numerous health benefits associated with cannabis, is driving the growth of the segment. Furthermore, the trend of cannabis beverages among millennials, who are more likely to accept new products, is also contributing to the growth of the segment. Additionally, the increasing adoption of cannabis beverages by restaurants and bars is also contributing to the segment growth.
The alcoholic segment is expected to account for the largest revenue share of 68.6% in the year 2022. The alcoholic cannabis beverages are gaining popularity worldwide, due to their unique flavor profiles and the fact that they contain fewer calories and lower alcohol content than traditional beer. Furthermore, the growing trend of cannabis-infused beer among male consumers is also driving the growth of the segment. For instance, in February 2020, Molson Coors Beverage Company, a U.S.-based brewing company, announced the launch of cannabis-infused beer, Truss CBD USA.
Regional Insights
North America is expected to dominate the market and account for the highest market share during the forecast period. This region has the most favorable regulatory framework for cannabis-infused beverages, which is the major factor driving the market in this region. The legalization of cannabis for medical and recreational use in Canada and some states in the US is further expected to drive the market in the region.
Europe is expected to be the second-highest contributor to the cannabis beverages market. Increasing demand for cannabis-infused beverages on account of the growing trend of healthy living and rising awareness regarding the health benefits of cannabis is driving the market in the region. For instance, in April 2021, Heineken launched its new cannabis-infused beer, Amsterdank, in the Netherlands.
Financial Projections
In this part of the cannabis beverages products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your cannabis beverages products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a cannabis beverages products business comes from the sale of the beverages, including both online and in-store sales. Additionally, other sources of income may include crowdfunding, private equity investments, and grants.
Projecting Expenses
In this section, all the regular expenses related to keeping the cannabis beverages products business running will be described. The list of operating expenses includes production costs, marketing and advertising expenses, wages, rent, utilities, business insurance, and other related costs.
Key companies & market share insights
Some of the key companies operating in the cannabis beverages market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Molson Coors Beverage Company announced the launch of its line of cannabis-infused beverages.
– In September 2022, Constellation Brands, Inc. launched a line of cannabis-infused sparkling water beverages.
– In October 2022, HEXO Corp launched a line of cannabis-infused sparkling beverages.
Some of the prominent players in the cannabis beverages market include:
– Molson Coors Beverage Company
– Constellation Brands, Inc.
– Anheuser-Busch InBev
– Heineken
– Diageo PLC
– HEXO Corp
– Canopy Growth Corporation
– Tilray, Inc.
– CannTrust Holdings, Inc.
– Aurora Cannabis Inc.
Global Cannabis Beverages Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cannabis beverages products market based on product type, distribution channel, end-use, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Alcoholic Beverages
– Non-Alcoholic Beverages
– Edible Products
– Topicals
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Online
– Offline
– Others
3. End-use Outlook (Revenue, USD Million, 2017 – 2030)
– Recreational
– Medicinal
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the factors driving the cannabis beverages products market?
[A]: The increasing demand for cannabis-infused beverages, the rise in demand for natural food and drinks, and the growing acceptance of cannabis-infused beverages are some of the major factors driving the cannabis beverages products market.
[Q]: How is the Cannabis Beverages Products Market Segmented?
[A]: The Cannabis Beverages Products Market is segmented by product type, distribution channel, and region. By product type, it is segmented into beer, wine, spirits, ready-to-drink, and others. By distribution channel, it is segmented into retail stores, convenience stores, online stores, and others.
[Q]: Who are the Key Players in the Cannabis Beverages Products Market?
[A]: Major players in the cannabis beverages products market include Molson Coors, Constellation Brands, Heineken, Diageo, Lagunitas Brewing Company, and Canopy Growth Corporation.
[Q]: What is the Potential of Product Innovation?
[A]: Product innovation is a major focus area of the market players. Companies are focusing on developing new products to capture a larger market share. They are also introducing new flavors, color options, and packaging formats to meet the changing demands of consumers.
[Q]: Which Region Offers the Largest Opportunity for Sales of Cannabis Beverages Products?
[A]: North America is expected to be the largest regional market due to the increasing legalization of cannabis in the region. The Asia Pacific is expected to witness the highest growth due to the rising demand for cannabis-infused beverages in the region.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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