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Global Cannabis Beverages Market Expected to Reach $2 Billion by 2026

A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled “Cannabis Beverages – Global Market Trajectory & Analytics”. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.

Related: Top 5 Cannabis Beverage Stocks for 2021

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Edition: 9; Released: February 2022
Executive Pool: 773
Companies: 79 – Players covered include Aphria; Aurora Cannabis; CannTrust Holdings, Inc.; Canopy Growth; Cronos Group Inc.; Dixie Brands Inc.; GW Pharmaceuticals plc; Hexo Corp.; Keef Brand; Koios Beverage Corporation; MedReleaf Corp.; New Age Beverages Corporation; OrganiGram Holdings; Phivida Holdings Inc.; The Alkaline Water Company; Tilray; VCC Brand; Vivo Cannabis Inc. and Others.
Coverage: All major geographies and key segments
Segments: Type (Non-Alcoholic, Alcoholic); Component (Tetrahydrocannabinol (THC), Cannabidiol (CBD))
Geographies: World; United StatesCanadaJapanChinaEurope (FranceGermanyItalyUnited Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

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Global Cannabis Beverages Market to Reach US$2 Billion by the Year 2026
Cannabis has been gaining considerable popularity globally. Its use for recreational purposes (factoring in the illegal usage) is much higher in comparison to its medicinal use. The market is anticipated to be on a growth path due to the growing cannabis demand in the mainstream market. The changing legal status of marijuana in a growing number of countries worldwide, including several US states, is attracting more and more food and drink companies to the vibrant cannabis beverages market. The continued deregulation of cannabis, escalating societal acceptance, growing awareness of CBD benefits, and availability in familiar/popular formats are some factors supporting growth in demand and sales of cannabis beverages. The CBD-infused beverages are gaining popularity in the US where they are becoming easily available through mainstream retail outlets. The growing interest in wellness drinks is also likely to drive gains in the market. Customers are increasingly demonstrating preference for wellness drinks over soft drinks, which is driving demand for cannabis beverages. The market is also benefitting from other factors such as better living standards, increasing disposable income levels, and legalization of recreational cannabis in several countries. Off-trade channels such as lounges, clubs, restaurants, cafes, and hotels are likely to augment the product’s visibility and popularity among customers.

Amid the COVID-19 crisis, the global market for Cannabis Beverages estimated at US$1 Billion in the year 2022, is projected to reach a revised size of US$2 Billion by 2026, growing at a CAGR of 16.9% over the analysis period. Non-Alcoholic, one of the segments analyzed in the report, is projected to grow at a 17.5% CAGR to reach US$1.6 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Alcoholic segment is readjusted to a revised 15.7% CAGR for the next 7-year period. Non-alcoholic cannabis beverages dominate the market and are also expected to register strong growth, mainly supported by growing demand from female and new customers, especially millennials, and also rising interest in wellness drinks among customers. Cannabis-infused alcoholic beverages are also gaining strong popularity, given their capability to offer the alcohol effect, but with health advantages and no calories. They are mainly used by people who consume cannabis as well as alcohol.

The U.S. Market is Estimated at $752 Million in 2022, While Asia-Pacific is Forecast to Reach $146.7 Million by 2026
The Cannabis Beverages market in the U.S. is estimated at US$752 Million in the year 2022. The country currently accounts for a 70.9% share in the global market. Asia-Pacific is forecast to reach an estimated market size of US$146.7 Million in the year 2026 trailing a CAGR of 14.2% through the analysis period. Among the other noteworthy geographic markets are Canada and Europe, each forecast to grow at 16.7% and 16.1% respectively over the analysis period. North America is a dominant market, mainly driven by growth in the US market. Subsequent to the legalization of the use of hemp and its derived CBD products, sales of hCBD (hemp-cannabidiol) gained considerable impetus. GuamPuerto Rico, the US Virgin Islands, District of Colombia, and 33 States have granted approval to medical cannabis programs (publicly available), which led to the introduction of many cannabis drinks. Further, 13 states in the country permit the usage of high CBD and low THC products for medical uses, which has resulted in strong adoption of CBD infused cannabis drinks. Europe is another region that is likely to register surging demand, due to the growing interest in cannabis among consumers and the rising introduction of products. In developing regions such as Latin America, Oceania, and Asia, cannabis-based beverages have registered nominal growth due to the prohibition of THC products.

By Component, Tetrahydrocannabinol (THC) Segment to Reach 1.1 Billion by 2026
Demand for cannabis beverages infused with THC is being supported by the growing consumption among adult customers for recreational reasons. The euphoria they offer as well the therapeutic benefits are anticipated to foster their demand. In the global Tetrahydrocannabinol (Component) segment, USACanada, and Europe will drive the 16.2% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$422.5 Million will reach a projected size of US$1.2 Billion by the close of the analysis period. The market in Asia-Pacific is forecast to reach US$76.6 Million by the year 2026. More

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Zak Ali
Director, Corporate Communications
Global Industry Analysts, Inc.
Phone: 1-408-528-9966

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Global Cannabis Beverages Market Expected to Reach $2 Billion by 2026