by The cannabis beverage market has seen significant growth in recent times owing to rising adoption of cannabis infused drinks as an alternative means of consuming cannabis. Cannabis beverages provide consumers a discreet and convenient way of consuming cannabis without the associated smoke or inhalation issues related to other consumption methods. They contain various beneficial cannabis compounds like THC and CBD known to provide relaxation and other therapeutic effects. The global cannabis beverage industry has seen a rise in innovative product offerings from players. Beverages infused with cannabis are available in various forms like soda, tea, alcohol mixed drinks, juices, and milk-based drinks which are appealing to a wide consumer segment. Varying cannabis concentrations and customized blends allow consumers to micro-dose as per their requirements.
The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 22.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends witnessed in the global cannabis beverage market is the growing demand for natural and organic cannabis infused drinks. Consumers are increasingly preferring beverages made from organic cannabis extracts and natural flavors rather than synthetic ingredients. This has prompted companies to offer more natural and organic cannabis drink options made from sustainably sourced ingredients. Another key trend is the introduction of innovative cannabis infused drinks focused on wellness. Various brands have launched drink lines containing specific cannabis compounds like CBD known for their relaxing properties. These wellness focused cannabis beverage products are gaining traction among health conscious consumers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the cannabis beverage market is moderate. New players require high capital to build manufacturing facilities and distribution channels. However, supportive regulations can reduce barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. Large retailers can negotiate lower prices and demand high quality products. However, the growing product demand increases buyers’ dependency on existing manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major manufacturers work with a limited number of specialized cultivation and extraction suppliers. However, changing regulations increase scope for new suppliers.
Threat of new substitutes: The threat of new substitutes is moderate. Potential substitutes include conventional foods and beverages. However, cannabis-infused products offer unique wellness benefits with growing social acceptance.
Competitive rivalry: Competition in the cannabis beverage market is high and expected to intensify further. Major players compete on quality, product varieties, brand recognition, and regional presence.
Key Takeaways
The Global Cannabis Beverage Market Share is expected to witness high growth. The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 22.0% over the forecast period 2023 to 2030.
North America dominates the market currently due to supportive regulations and a high number of product launches. Changing laws are expected to boost the Asia Pacific market at the fastest pace. North America accounts for the largest share of over 50% in the global cannabis beverage market. Favorable regulations and increasing product availability in the US and Canada are driving the regional market. Asia Pacific is anticipated to emerge as the fastest growing regional market, led by increased acceptance in countries like Australia, Thailand, and South Korea.
Key players: Key players operating in the cannabis beverage market are IBM Corporation, Microsoft Corporation, SAP SE, and Oracle Corporation. IBM offers cannabis supply chain solutions like cultivation and production tracking. Microsoft provides analytics tools to optimize production processes. SAP’s platforms manage seed-to-sale operations and ensure regulatory compliance. Oracle enables inventory, sales and marketing functions for cannabis companies.
