Cannabis beverages containing non-alcoholic THC and CBD are increasingly prevalent. They provide an alternative to smoking and allow consumers to enjoy the mood-enhancing effects of cannabis in a familiar drink format. The market has seen innovations such as sparkling waters, cold brew coffees, and juices infused with different cannabis extracts.
The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 million in 2024 and is expected to exhibit a CAGR of 30.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Novel product innovations present a significant opportunity for the Cannabis Beverage Market. As consumer preferences evolve towards healthier products with functional benefits, companies are innovating new formulations, flavors and packaging targeted at different segments of cannabis users. Beverages infused with micro-doses of THC or CBD provide an easy way to enjoy the therapeutic effects with discretion. Advanced technology is also enabling customized experiences through digital applications. By expanding the product portfolio with innovative options, companies can appeal to a wider consumer base and drive the future growth of the market over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the cannabis beverage market is moderate. Establishing manufacturing facilities and distribution channels requires significant capital investments and compliance with regulations which pose barriers.
Bargaining power of buyers: The bargaining power of buyers in this market is high. There is a growing variety of beverage options for consumers to choose from. Buyers can negotiate on price if alternatives are available.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Majority of cannabis cultivation is consolidated among a few large producers. However, suppliers of other raw materials have lower bargaining power.
Threat of new substitutes: Threat of substitutes is moderate to high. Beverages containing other ingredients like hemp, CBD offer substitutes. Alcohol is also a potential substitute.
Competitive rivalry: Competition in the market is high and intense as major companies fight for market share and brand loyalty.
SWOT Analysis
Strengths: Growing consumer demand and social acceptance for cannabis-infused products. Increasing legalization of cannabis across regions.
Weaknesses: Significant regulatory compliance requirements add to production costs. Stigma and misconceptions around cannabis consumption persist in certain areas.
Opportunities: Potential to introduce varied formulations, flavors and cannabinoid profiles to attract new consumers. Emerging wellness trend supports market potential.
Threats: Strict regulations and bans on cannabis in some countries. Health concerns around long term effects of cannabis use pose reputational risks. Intense competition affects profit margins.
Key Takeaways
The Global Cannabis Beverage Market Share is expected to witness high growth over the forecast period supported by growing consumer base, product innovations and expanding legalization. The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 million in 2024 and is expected to exhibit a CAGR of 30.0% over the forecast period 2023 to 2030.
North America currently dominates the market due to widespread cannabis legalization in countries like US and Canada. North America will continue to lead market growth due to growing product demand and supportive regulatory environment in major countries. Canada and US are estimated to jointly account for over 70% market share by 2030. Rapid changes in legislations are propelling growth of legal cannabis markets in Latin America and Europe as well.
Key players: Key players operating in the cannabis beverage market are Constellation Brands, Keef Brands, Cann, The Alkaline Water Company, Lagunitas and Heineken. Constellation Brands is a leader with a wide range of cannabis-infused beverages launched under brands like Corona and Modelo. Keef Brands offers various flavored sodas and teas containing THC and CBD.
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