The global cbdsmokez is set to gain impetus from the increasing popularity of these products owing to their possession of several functional benefits, such as easy availability, ease of administration, and portion-controlled doses. presented this information in a new study, titled, “Cannabis Beverages Industry, 2021-2028.” The study further mentions that the cannabis beverages market size stood at USD 367.37 million in 2019 and is projected to reach USD 8,521.58 million by 2027, exhibiting a CAGR of 50.9% in the forecast period.
This Report Answers the Following Questions:
- Which segment is set to lead the market and why?
- How will the market be affected amid the COVID-19 pandemic?
- How many opportunities and challenges is the market likely to come across?
- What strategies are the key players adopting to strengthen their positions?
Rapid Shift of Consumers towards Chemicals-free & Natural Trends to Aid Growth
The consumption of cannabis nowadays is not limited to bongs, pipes, and joints. People have a wide range of choices, including infused products and concentrates. The global beverages industry is undergoing a significant transformation with the additives and ingredients. Consumers based in the developed countries, especially Europe and North America are persistently striving to shape this sector. To do so, they are rapidly inclining towards several trends, such as recognizable and herbal formulations, chemicals-free, and all-natural cannabis beverages.
However, the governments of various countries are implementing stringent regulations on the distribution & manufacturing of such tetrahydrocannabinol (THC) products. This factor is likely to hamper the cannabis beverages market growth in the near future.
Online Retail Segment to Dominate Stoked by Ability to Offer Convenience & Privacy
Based on distribution channel, the online retail segment is set to remain at the forefront by generating the largest cannabis beverages market share in the coming years. E-commerce platforms enable consumers to purchase cannabis beverages by providing autonomy, privacy, and convenience regarding the choice of the products. At the same time, specialty stores would showcase greater sales if they display novel products online.
Presence of Flourishing Functional Beverage Industry to Favor Growth in North America
Geographically, North America earned USD 335.13 million in terms of revenue in 2019 and is expected to remain dominant throughout the forthcoming years. This growth is attributable to the major contribution of the U.S. as it houses a well-established functional beverage industry. Since the passing of the 2018 U. S. Farm Bill, the demand for hemp-cannabidiol (hCBD) has surged rapidly. On the other hand, Latin America, Oceania, and Asia would exhibit slow growth because of the ban of cannabis beverages in these regions.
Key Players Focus on New Product Development to Gain Competitive Edge
The global market for cannabis beverages is regulated by certain regulatory bodies worldwide. The market possesses a competitive and dynamic structure. Key companies are focusing on the investment strategy to produce raw material for the development of state-of-the-art cannabis beverages.
Some of the others are introducing novel products in the market. Below are two latest industry developments:
- August 2020: Truss Beverage Co., the joint venture between Hexo Corpand Molson Coors unveiled its latest range of cannabis beverages in Canada. The five innovative beverages contain varying levels of THC and cannabidiol (CBD). They are non-alcoholic.
- August 2020: Canopy Growth Corp is planning to introduce its new cannabis beverages in the U.S. to strengthen its position in the weed beverage sector. The company has licensed rights to its line of beverages to Acreage Holdings Inc.