Global Cannabis Beverage Market Trends, Analysis, Forecast: By Type: Alcoholic, Non-Alcoholic; By Component: Cannabidiol (CBD), Tetrahydrocannabinol (THC); By Distribution Channel: Hypermarkets and Supermarkets, Convenience Store, Mass Merchandisers, Others; By End Use; Regional Analysis; Competitive Landscape; 2024-2032

Global Cannabis Beverage Market Size

The global cannabis beverage market reached a value of USD 5.83 billion in 2023. The industry is further expected to grow at a CAGR of 48% in the forecast period of 2024-2032 to reach a value of USD 198.66 billion by 2032.

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Cannabis Beverage Market Growth

Rising Demand for Wellness Drinks Boosting the Global Cannabis Beverages Market

Increasing demand for wellness drinks is anticipated to drive the expansion of the industry. The low sugar content of the product as well as the presence of an appropriate quantity of cannabis for consumption are among the drivers projected to fuel the cannabis beverage market value. The legalization of marijuana consumption for medical and recreational purposes in many countries is predicted to drive the assembly as well as demand for cannabis-infused beverages. The rising use of cannabis for the treatment of varied diseases like neurological disorders, cancer, and pain control is predicted to drive the demand for cannabis drinks. Growing consumer interest in cannabis edibles is additionally expected to boost the growth. Cannabis consumers are shifting their interest from smoking cannabis to other ways, like beverages, tinctures, chocolates, and other edibles.

Cannabis Beverage Market Trends

Consumers are willing to consume concentrated and cannabis-infused products, which successively, is anticipated to support the growth of the cannabis beverage market. Cannabis beverages are predicted to exchange other marijuana-infused consumables, like chocolates, cookies, and brownies, and confectionaries like gummies and candies which are considered to be not healthy. This factor is predicted to spice up the demand for cannabis drinks over the forecasted period. Consumers are shifting their choices from soft drinks to wellness drinks resulting in the increasing sale of cannabis beverages off-trade sales channels like hotels, cafes, restaurants, clubs, and lounges are expected to boost the recognition of the product among consumers.

Recent Developments

As per the cannabis beverage market analysis, Cann, a cannabis beverage provider, announced its partnership with Green Thumb Industries (GTI) in 2021 for the sales of its cannabis beverages in the states. It is marketing its product as a healthier alternative to alcohol among consumers who prefer the market of controlled cannabis over the unethical distribution of cannabis-based products.

Industry Outlook

Major factors affecting global cannabis beverage growth include increasing legalization and acceptance of cannabis products, along with rising consumer demand for health and wellness alternatives to alcohol.

According to the World Population Review, Papua New Guinea has the highest annual cannabis prevalence at 29.5%, followed by Canada at 27.0% and the United States at 21.9%. As per the cannabis beverage industry analysis, Nigeria reports significant usage at 19.4%, while New Zealand stands at 15.0%. Australia has an 11.6% usage rate, with France at 11.0%, Spain at 10.5%, Italy at 10.2%, and the Netherlands at 10.1%. Argentina's cannabis use is 8.1%, Germany and the United Kingdom both have 7.1%, the United Arab Emirates reports 5.4%, Egypt at 5.3%, South Africa at 3.7%, India at 3.2%, and Mexico at 2.1%.

Canada's high usage rate can be attributed to the legalization of cannabis for recreational use in 2018, which increased accessibility and reduced stigma, further aiding the cannabis beverage industry revenue. In the United States, varying state-level legalization and shifting social attitudes contribute to the high usage. Papua New Guinea's leading position may be influenced by traditional and cultural practices where cannabis is more widely accepted.

A crucial trend in cannabis beverage market for 2021 is that Millennials (age 27-42) were the largest consumers in both the US and Canada, with 46.2% and 50.3%, respectively. Generation Z (age 11-26) followed, with 16.8% in the US and 21.8% in Canada. Generation X (age 43-58) had 23.9% consumption in the US and 20.6% in Canada. Baby Boomers (age 59-77) showed lower consumption rates, with 13.1% in the US and 7.3% in Canada. These trends suggest that younger age groups are more likely to consume cannabis, indicating a potential market for cannabis-infused beverages among these demographics.

The high cannabis use in these countries indicates a robust potential market for cannabis beverages that can boost the growth of the cannabis beverage industry. As legalization and social acceptance continue to grow, especially in North America, the demand for diverse cannabis-infused products, including beverages, is likely to increase, offering significant growth opportunities for the market.

Legalization and Regulatory Changes and Health and Wellness Trends are Strengthening the Growth of the Global Market

• Legalization and Regulatory Changes: Expanding legalization of cannabis for medical and recreational use aids cannabis beverage demand growth.

• Health and Wellness Trends: Rising demand for healthier alternatives to alcoholic drinks.

• Product Innovation: New formulations in taste, variety, and potency attracting consumers.

• Social Acceptance: Increasing social acceptance and reduced stigma around cannabis use.

High Production Costs and Lack of Social Acceptance May Pose Challenges to Players in the Global Market

• Regulatory Hurdles: Varying laws and regulations across regions complicate market entry and compliance and negatively impact the cannabis beverage demand forecast.

• High Production Costs: Costs associated with cannabis cultivation, extraction, and beverage production are significant.

• Market Education: Consumers' lack of knowledge about cannabis beverages can limit adoption and demand.

• Stigma and Social Acceptance: Despite growing acceptance, lingering stigma around cannabis use continues to pose challenges.

Key Trends Shaping the Global Market Include Premium Product Offering and Sustainability and Ethical Sourcing

• Collaborations and Partnerships: As per the cannabis beverage market dynamics and trends, strategic collaborations between cannabis companies and established beverage manufacturers are becoming more common. 

• Brand Differentiation and Premiumization: As competition intensifies, brands are focusing on differentiation through premium product offerings, unique formulations, and appealing packaging.

• Sustainability and Ethical Sourcing: There is a growing emphasis on sustainability and ethical sourcing in the cannabis beverage industry.

Competitive Factors in the Global Cannabis Beverage Market Share

• Key players focus on developing unique formulations, flavors, and delivery methods to attract consumers.

• Strategic partnerships, mergers, and acquisitions enhance cannabis beverage demand and expand product portfolios. Compliance with varying regulations and quality standards is crucial.

• Marketing strategies and brand loyalty play significant roles in gaining a competitive edge in this rapidly evolving market.

Key Players in the Global Market and their Strategic Initiatives

• Anheuser Busch InBev Focuses on developing cannabis-infused non-alcoholic beverages through partnerships and joint ventures, such as the collaboration with Tilray to create Fluent Beverage Company that can boost the growth of the cannabis beverage market.

• Canopy Growth Corporation Invests in innovative product development and expanding its product line of cannabis beverages. Strategic acquisitions and partnerships, such as the acquisition of BioSteel, enhance market reach.

• Tilray, Inc Engages in partnerships and acquisitions to expand its product offerings and market presence. Collaborates with major beverage companies to develop and market cannabis-infused drinks globally.

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Cannabis Beverages Industry Segmentations

Cannabis is a flowering plant which is usually referred to as hemp, belonging to the family of Cannabaceae. For ages, cannabis has been used as a source of hemp oil and hemp fibre and is understood for its medicinal purpose and as a mind-altering drug. Recently the utilization has been extended to common consumable drinks referred to as cannabis drinks which increases cannabis beverage market opportunities.

On the basis of type, the cannabis beverages market has been segmented into:

• Alcoholic

• Non-Alcoholic

Cannabis beverages can be divided on the basis of component into:

• Cannabidiol (CBD)

• Tetrahydrocannabinol (THC)

Based on distribution channel, the market is segmented into:

• Hypermarkets and Supermarkets

• Convenience Store

• Mass Merchandisers

• Specialty Stores

• Online

• Others

Cannabis beverages find its end uses in the following:

• Household

• HoReCa

The regional markets for cannabis beverages can be divided into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Competitive Landscape

The report gives a detailed analysis of the following key players in the cannabis beverage market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Anheuser Busch Inbev NU

• Canopy Growth Corporation

• Dixie Elixirs LLC

• Phivida Holdings Inc

• Tilray, Inc

• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

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Cannabis Beverage Market Regional Analysis

North America to be among Leading Regions of the Global Market

North America is likely to be the fastest and largest marketplace for cannabis beverages. The legalization of cannabis for medical, therapeutic, and recreational purposes is driving the cannabis beverage industry expansion. In 2018, Canada legalized the utilization of marijuana for recreational and medical purposes. Various states in the United States have made the addition of cannabis infusion legal in food and beverages. This factor is predicted to spice up the expansion of the cannabis food and beverage market in North America.

Europe to Witness Significant Growth in the Coming Years

Europe is additionally estimated to witness significant growth over the forecasted period due to the rising consumers within the region. As per the Cannabis Trade Association, the companies operating in the region are introducing products to keep up with the rising trend of wellness drinks. The demand of cannabis beverage market is also well-built in the Netherlands due to the presence of cafes and restaurants committed to marijuana consumption. The growth of cannabis tourism within the country is predicted to further boost the demand within the country. Countries, like Australia and Uruguay, also are anticipated to witness a big rise in product demand, due to the legalization of marijuana for medical and recreational purposes.

Key Highlights of the Report

Cannabis Beverage Market Report Snapshots

Cannabis Beverage Market Size

Cannabis Beverage Market Growth

Cannabis Beverage Market Trends

Cannabis Beverage Companies

Cannabis Beverage Market Regional Analysis

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.