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Cannabis Beverages Market size was over USD 1.95 billion in 2023 and is poised to exceed USD 642.52 billion by 2036, witnessing over 56.2% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of cannabis beverages is evaluated at USD 2.83 billion.
Cannabis or marijuana is a budding plant, belonging to the family of Cannabaceae. In several parts of the world, marijuana has been well-known for its use in psychoactive drugs and therapeutic use. For a long time, the use of cannabis was mostly restricted to medical purposes. However, in the last few years, the usage of marijuana has stretched out to consumable drinks such as cannabis-based beverages. Cannabis-based beverage companies have arrived in the marketplace to supply and cater the growing demand for cannabis-infused products. The recreational use of cannabis is far superior as compared to the medicinal usage, keeping illegal consumption into consideration.
Growth Drivers
The rising popularity of wellness drinks
The legalization of cannabis for medical and recreational purposes has had a solid impact on the sales of alcoholic drinks. This results in many alcohol manufacturers investing in the rising fashion of marijuana-infused drinks.
Customers are shifting from soft drinks to wellness drinks, which, in turn, led to an increase in sales of cannabis beverages. Additionally, the low sugar content in these drinks and consumers' preferences for these beverages as an alternative to cannabis smoking and consumption of marijuana-infused chocolates, cookies, brownies, and confectionaries, as they are considered to be unhealthy, are the major driving factors contributing towards the growth of the cannabis beverages market. Off-trade sales channels, such as hotels, cafes, restaurants, clubs, and lounges are projected to boost the demand for the product among customers.
Health benefits associated with cannabis beverages
Various health benefits such as improved sleep patterns, restricted weight gain, relief from depression and anxiety, controlled blood pressure, and others, are predicted to boost the growth of the cannabis beverages globally during the forecast period.
Further, increasing usage of cannabis for treating neurological disorders, epilepsy, cancer, and pain control is likely to create more demand for cannabis drinks.
Additionally, legalizing medical or recreational cannabis in certain regions has imparted significant positive impact on the sector. Over the past few years, public and private investments into Research and development for a safer form of consumption of cannabis are another noteworthy driving element which reinforced the market growth. There have been a noteworthy increase in the number of companies operating in this market which promotes the variety and quantity of products provided to the end-users. Such variants in the products is contributing further in order to boost the market demand.
Challenges
Few health concerns accompanying the consumption of marijuana such as extreme anxiety, fear, distrust, panic, risk of depression, and blocks of memory formation might hamper the growth of the market.
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
56.2% |
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Base Year Market Size (2023) |
USD 1.95 billion |
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Forecast Year Market Size (2036) |
USD 642.52 billion |
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Regional Scope |
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The cannabis beverages market is segmented by type, constituent, distribution channel, application, end-user, and region. Among product type segmentation, the non-alcoholic beverages segment holds the leading market share attributable to the increasing demand for smoke-free cannabis, awareness regarding the medical influence of marijuana on explicit health conditions, and legalization of recreational use of cannabis in certain regions.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Constituent |
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By Distribution Channel |
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By Application |
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By End-Use
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Geographically, the cannabis beverages market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
North America industry is likely to hold largest revenue share by 2036, attributed to growing spending on cannabis beverages, the prevalence of legislation norms, and presence of many private players in the region.
Uruguay and Canada have entirely legalized the use of marijuana for medicinal purposes. Liberal states in the US such as New York, New Jersey, Vermont, and California have also either legalized or are looking at ways to legalize the usage of marijuana. In total 33 states, District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands have allowable comprehensive, publicly available cannabis programs as per State Medical Marijuana Laws.
Europe is predicted to hold second position in the global cannabis beverages market, owing to the rising investment for cannabis beverages, growing awareness, and the rise in number of cannabis consumers in the region.
Additionally, the companies functioning in the region are launching products in order to sustain the growing trend of wellness drinks. Manchester-based CBD Ultra and Cloud 9 Brewing have launched the U.K.'s first CBD infused craft beer brewed with Cannabis Sativa extract.
The Cannabis Trades Association (CTA) is the oldest and biggest cannabinoid centric trade association for the UK and Europe. They work with all sectors of the hemp and cannabis industry for promoting good practice, providing practical advice, and ensuring consumers of legal cannabis and hemp products and also have the right to use top quality information.
Usage of cannabis is legalized in major parts of South and Central America, as well as Africa. Countries, such as Australia and Uruguay are also projected to witness noteworthy upliftment in product demand, in consequence of the legalization of marijuana for medical and recreational purposes.
February 13, 2020: The Food Standards Agency (FSA) declared a deadline of 31 March 2021 for the submission of a valid application for new food authorization for businesses selling food and supplements of food containing CBD in the UK. Failure to submit may result in products being taken off the shelves. Along with this warning, the FSA also delivered its first-ever safety advice to consumers of CBD products.
March 2019: NHL Alumni Association landed a landmark deal with Canopy Growth Corp. that will see a comprehensive study of the health of retired hockey players. The study will discover whether cannabinoids might help to discourage former players from using addictive opioids.
Author Credits: Parul Atri
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