Cannabis Infused Drinks Market Valuable Growth Prospects and Insights on Future Scenario

From: Fact Market Research
Published: Thu Jul 18 2019

Cannabis has become the buzz word in the beverage industry, and mainstream companies are already taking strides in the CBD- and/or THC-infused drinks landscape. According to a new study by Fact.MR, the global cannabis infused drinks market will surpass US$ 200 Mn in 2019. While the legalization of marijuana in over 10 states of the U.S. sparked a wave of innovative product launches in the edibles space, the second wave of recreational marijuana legalization resulted in a lawful emergence and proliferation of cannabis infused beverages – alcoholic and non-alcoholic.

In Brief:

Global sales of cannabis infused drinks will surpass US$ 200 Mn in 2019, propelled by growing efficiencies in the delivery methods of drinkables, along with increasing discretion and social acceptance of the consumption method, in contrast to smoking cannabis.

Broader legalization of marijuana has led big alcohol producers to pivot to pot in the recent past. Cannabis infused beer continues to account for leading shares of the market, approximately 80%, which can be attributed to the strong perception of leading beer brewers that intersection between cannabis-infused functional beverages and beer makes a good business sense.

The US will remain the leading market for cannabis infused drinks, as leading manufacturers focus on creating safer ways of ingesting cannabis for consumers, while the start-ups continue to scramble for capitalizing on demand through new range of cannabis-infused beverages.

Canada is expected to be the high-growth market for cannabis infused drinks, with gains primarily driven by the recent federal legalization of marijuana.

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Key Challenges Faced by Stakeholders in Cannabis Infused Drinks Market

Regulatory challenges remain in the cannabis industry as a while, however key issues that stymie product approval and introduction to the market include safety, testing, and labelling mandates which have been updating continuously in the recent past. Re-labelling and testing of products for remaining compliant with changing regulatory standards remains one of the most crucial concerns among players in the cannabis infused drinks market.

Cannabis is fat-soluble and cannot be dissolved in water, which in turn results into "salad dressing effect’ – separation of cannabinoids and the beverage medium. Although various methods have been employed by companies in the cannabis-infused drinks industry, none of them have been proved completely effective in eliminating the ‘salad dressing effect’, which remains a key challenge impeding the market growth.

Cannabis Infused Drinks Market- Competitive Landscape

The competitive landscape of the cannabis infused drinks market continues to face the turmoil of regulations on the sales and consumption of cannabis. Cannabis infused drinks market in Canada is expected to grow at an impressive pace, in line with the existing favorable federal regulations that back the sales of cannabis in the region. Alcohol industry giants are buying into the ‘potent potable pot’ concept, however key issues prevail, such as the maze of laws that deal with beer and pot. Following the legalization of marijuana in Canada, beverage companies have increased the production of cannabis infused drinks in different flavors to tap growing demand from enthusiasts.

Leveraging emerging technology and tracking trends in the mainstream beverage industries, to introduce innovative variants, is expected to remain the key strategy of manufacturers to gain a competitive edge. Additionally, growing consumer demand for cannabis that impart a particular effect is hard-pressing beverage companies to offer a wider variety of THC and CBD doses in their offerings. A greater emphasis on organic or natural ingredients is expected to mold prospects of the cannabis infused drinks market.

The demand for CBD-based cannabis infused drinks is growing significantly among canna-curious novice users who want discreet, convenient, and controlled dose of cannabis. Although both THC and CBD cannabis infused drinks contain a plethora of medicinal and therapeutic benefits, the benefits of the latter and its non-psychoactive property continue to attract more enthusiasts. With a capacity to create a ‘high’ without any health risks that are associated with smoking is adding considerably to the sales of CBD-based cannabis infused drinks. This study estimates that gains from CBD cannabis infused drinks will continue to comparatively larger in the market.

A realistic methodology along with holistic approach forms the foundation of the valuable insights mentioned in the cannabis infused drinks market. The Fact.MR report enumerates exhaustive information on the growth prospects of cannabis infused drinks sector along with captivating insights into the forecast analysis of the market.

Extensive primary and secondary research has been done to garner actionable insights into the forecast analysis of cannabis infused drinks market. The report on cannabis infused drinks market has also undergone cross-validation to ensure the delivery of authentic information to the market enthusiasts.

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