Growing CBD Drink Market Steers Beverage Producers to Diversify
How CBD-infused RTD beverages could help get you to tomorrow
CBD beverages are a new cross-market trend that's growing in popularity among cannabis and non-cannabis consumer markets. If you are a craft beverage business looking to diversify your offerings, this may be something to consider for your product lineup.
Global CBD-infused beverages market trend
The market projection for CBD-infused beverages -- also colloquially called cannabis beverages -- continues to grow and has been proven to date. The fiscal year 2020 set a precedent of $173.67 million. As of July 2022, with a CAGR of over 16.9%, the market value is now expected to reach $2 billion by 2026.
The two major driving factors for the growth of the CBD-infused beverages market are the increasing awareness of CBD's health benefits and its progress in legalization. It is important to note that stringent regulations on cannabis manufacturing may affect the growth rate during the forecasted period. Many of these restrictions are based on the derivative plant species and the THC levels produced by them.
Ready-To-Drink (RTD) cannabis market trend
Ready-To-Drink (RTD) cannabis beverages are a new product category in the rapidly growing RTD marketplace. Cannabis drinks are innovative and non-traditional, so it makes sense that they are gaining in popularity, especially as the market for CBD products in general matures and becomes more sophisticated.
It is important to note that many CBD-infused beverages don’t even contain THC, which is the substance primarily responsible for the effects of marijuana on a person's mental state. Instead, CBD, as an added ingredient, layers and enhances a beverage’s flavors to appeal to a more complex tasting palate.
With this, there are now more options available to consumers at every level than ever before…from those who are just testing the waters to those who are more comfortable with ingesting cannabis and CBD. This makes the market ripe for entry from both ends – beverage producers and consumers. There is little doubt that CBD-infused beverages are here to stay, and there are high hopes for this burgeoning industry!
Challenges and opportunities for CBD drinks
As with any new product category, there are challenges that come along with the opportunities. Educating the consumer marketplace and learning the industry regulations are crucial for success. CBD-infused drinks cross into both the cannabis and health/wellness industries, with growing evidence of benefits for sleep disorders, pain relief, and more.
There are many misconceptions about what CBD actually does and how best to reap its potential benefits. Most people are unfamiliar with the concept of non-intoxicating cannabinoids—and are resistant to using them – or don’t know how. Many may not understand the difference between THC-infused edibles and beverages and those infused with CBD oil or CBD isolate! This makes it all the more challenging for marketers to educate customers on their products' value proposition without appearing overly biased or aggressive in their messaging.
Varying regulations on the federal and state levels for ingredients and packaging only add to the mix of factors to consider when deciding to enter the marketplace.
Review of competition in CBD-infused beverages from small to big businesses
The CBD beverages market is a fast-growing industry and the product segment is experiencing robust growth. The market is projected to witness significant growth during the forecast period due to its benefits on human health, including pain relief and improved sleep.
Available published reports show key factors such as drivers, restraints, and opportunities that are shaping the global CBD beverage market in terms of value chain analysis:
- Regulatory Framework
- Pricing Strategy
- Distribution Channels
- Competitive Landscape Analysis
These reports also provide an extensive competitive landscape review of key players operating in the global CBD beverage market including Aurora Cannabis Inc., Canopy Growth Corp., Charlotte’s Web Holdings Inc., Coca-Cola Co., Diageo Plc., General Mills Inc., The Hain Celestial Group Inc., Molson Coors Brewing Company and PepsiCo Inc.. While many of these largescale companies are scrambling to find direction and a logistical foothold in this growing market, nimbler small-scale, local craft breweries have a prime opportunity to seize the initiative and act faster, and in most cases, first - deepening the trust of their customer base through product education and communication.
Taste-Tested Conclusion
With more and more people turning to CBD as a natural alternative to traditional medications, it’s no surprise that there’s been an influx in beverage products. From sparkling water infused with CBD oil, to coffee creamers containing this compound as well -- there really is something for everyone. Its calming effect can help improve morale and can also be used for pain relief as well as anxiety. CBD-infused beverages are now being sold in many places across the US. These trends show that people are open to trying new things when it comes to their health and will support product innovators who can bring them to market.
Photo source: mg Magazine,
Written by: Joseph Carpenter
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