CBD Beverages Market

CBD Beverages Market Outlook (2022 to 2032)

CBD beverages have gained popularity as cannabis products were legalized by the Farm bill (Agricultural Improvement Act) in 2014. The rising awareness of the health benefits of CBD products has elevated the growth of the CBD beverages market globally. Cannabidiol is a non-psychoactive molecule found in cannabis, which is extracted from leaves, resin, and flowers of marijuana or hemp.

There is rising awareness about the health benefits of adding cannabis-infused drinks to the diet are impelling factors of growth in the market. These cannabis drinks made their earlier appearance in the industry in commodities such as brownies and gummy bears which are often treated as unhealthy options. The drinks have become the most preferred way for consuming THC is likely to heighten the growth of CBD drinks arcade.

Cannabidiol is infused in beverages that treat a variety of health conditions including antioxidant and neuroprotective protective properties. The market is expected to showcase significant growth in the forecast period due to the rising adoption of natural products over pharmaceutical products. However, regulation and compliance on the use of CBD in the food and beverage industry have the potential to hampers the growth of the market.

The global market for CBD drinks accounted for USD 5527.13 Million in 2022. The market is anticipated to cross a valuation of USD 62748.24 Million by 2032. The market is expected to grow with a CAGR of 27.5% in the forecast period.

Report Attributes	Details
Market size (2022 A)	USD 5527.13 Million
Base Year for Estimation	2022
Forecast duration for this research	2022 to 2032
Forecasted Market value (2032 F)	USD 62748.24 Million
Global Market Growth rate (2022 to 2032 E)	CAGR of 27.5%
Key Companies Profiled	Alkaline88, LLC; Cannara Biotech Inc.; Phivida; New Age Beverages Corporation; Tilray; Aurora Cannabis

What are the drivers of the CBD beverage market?

“Rising Awareness of the health benefits of CBD Beverages”

CBD beverages are considered a natural remedy for a variety of health conditions. CBD-infused beverages are believed to treat varieties of health conditions including pain, anxiety, central nervous system disease, epilepsy, and many more.

Rising awareness of consumers on the wellness of the products and a growing number of health-conscious consumers is driving the growth of the CBD beverage market. Also, consumers’ preference for natural products over pharmaceutical products will also boost the CBD beverage market. Moreover, potential customers of BVD beverages are more willing to spend on legal CBD products, especially by baby boomers.

“Increased Demand from baby boomers”

Baby boomers are early users of CBD products. They have been using marijuana and hemp for food ingredients, textiles, and medical purposes. Baby boomers are more aware of CBD beverage benefits as compared to millennials and Gen Z. Baby boomers tend to spend more on CBD products. Also, with the increase in the number of baby boomers globally and the legalization of CBD drinks, baby boomers are expected to have the largest share of this market.

“The Covid-19 pandemic’s impact on the Beverage sector”

Like any other sector, the beverage sector also had a negative impact on manufacturing and distribution in the market. Cannabis manufacturers have shifted to online mediums for the promotion of their drinks. However, during the pandemic period, CBD-infused drinks become appealing to people as they had to stay at home all the time.

These drinks were preferred by the people while accompanied by food with entertainment that took upward demand for this market. Additionally, the legalization of these drinks has fostered market players to participate and increase their product portfolio by including a range of wellness beverages. The accelerated personal incomes have propelled the demand for lifestyles that are likely to have a positive impact on CBD beverages.

What restraints the market growth in CBD drinks?

The regulatory measures that are applied to the sales of products are hampering demand from certain regions. Cannabis beverages are popular owing to their THC effects on consumers. This is not permissible for several developed and growing countries. There are laws regulating the promotion and production of THC products that may deter the growth in the CBD drinks segment.

Which region reigns the market?

The CBD beverages market is expected to grow immensely in the North American region, with the legalization of CBD-infused products in many states. North American states including Colorado, Utah, Iowa, Texas, California, and others have the approval to grow and market CBD-infused products. Many key manufacturers such as Alkaline88, The Alkaline Water Company, and Youngevity International Inc. have been dominating the CBD Infused beverages.

The incorporation of CBD into drinks such as tea, coffee, and soda gaining demand among the population. In countries like Canada, these drinks have been legalized which further stimulates the demand for distinct flavors in CBD drinks. This is likely to bring an upward trajectory for these drinks in the forecast period.

The European market has also seen an upsurge in the CBD beverage market and is expected to grow tremendously in the region as the legalization of cannabidiol products has become mainstream. Asia Pacific is considered the biggest market for CBD beverages, many manufacturers are discovering opportunities to expand their market in this region.

Latin America and the Middle East and Africa has experienced steep growth in the legalization and marketing of cannabis product and has ample opportunity for this market to grow in these regions. There is rising preference for nutritional drinks by the people is the key reason behind the rising demand from this region.

Segment wise Insights

Based on the distribution channels the online segment dominates in terms of sales as there is heightened penetration of e-commerce in the market. The enhanced level of user convenience and autonomy are drivers of online channel sales. The licensed stores are also likely to gain a major share in the upcoming period.

There is a plethora of stores that display innovative beverages with flavors infused with flavors. These stores display a range of products and provide options to customers. The major share of the generation z population is ideally to be customers for CBD drinks owing to the rise in preference for flavored drinks. This segment is likely to continue remaining dominant in the upcoming years.

Competitive Landscape

The industry players are focused on the growth of the business by investing heavily in product research. These players are tapping into dynamic and competitive market structures likely to propel them in future years. This market is showing extensive opportunities for new companies.

Mergers and partnerships are opted for by many companies to excel and maintain market position in the forecast period. In 2020, BevCanna and Mota Ventures have announced a joint venture which likely to open novel distribution ways for both firms. The partnership is expected to bring benefits for each other out of the partners’ expertise.

CBD Beverages Market : Segmentation

• Based on the CBD Type :

  • Marijuana-derived
  • Hemp-derived
  • Others

• By end Users :

  • Millennial
  • Gen Z
  • Others

• By Grade :

  • Pharmaceutical Grade
  • Food Grade

• By Distribution :

  • Storefront dispensaries
  • Convenience store
  • Other

• Based on the Region :

  • North America
    • U.S.
    • Canada
  • Latin America
    • Mexico
    • Brazil
  • Western Europe
    • Germany
    • Italy
    • France
    • U.K
    • Spain
  • Eastern Europe
    • Poland
    • Russia
  • Asia Pacific
    • China
    • India
    • ASEAN
    • Australia
    • New Zealand
  • Japan
  • Middle East and Africa
    • GCC
    • S. Africa
    • N. Africa