The global cannabis beverages market is forecasted to reach a valuation of USD 3.86 billion by the year 2030, according to industry projections. This market is expected to expand at a compound annual growth rate (CAGR) of 19.2% over the period from 2024 to 2030, reflecting strong momentum and growing consumer interest. A key characteristic of this market is its highly fragmented structure, which is due to the significant presence of numerous small and medium-sized enterprises actively participating in the space. A considerable number of these companies are based in Canada, a country that has fully legalized marijuana for both medical and recreational purposes, making it a hub for innovation and development within the cannabis beverage industry.

One of the major driving forces behind the market’s growth is the increasing legalization of marijuana across various regions. Governments are legalizing cannabis not only to combat illegal markets but also to generate tax revenue through regulated sales. This policy shift is expected to create favorable conditions for the legal cannabis industry, including the cannabis beverages segment, and positively influence its global expansion.

In addition to legal reforms, the growing popularity of wellness drinks is anticipated to support rising demand for cannabis beverages throughout the forecast period. The acceptance and legalization of cannabis for both medical and recreational use have had a profound effect on alcoholic beverage sales, encouraging many alcohol manufacturers to diversify into cannabis-infused drinks. For example, Lagunitas, a popular California-based beer brand owned by Heineken, introduced Hi-Fi Hops, a cannabis-infused beverage that contains zero calories or carbohydrates, and is infused with both Cannabidiol (CBD) and Tetrahydrocannabinol (THC). Similarly, in 2017, Constellation Brands, the third-largest beer producer in the U.S., formed a strategic partnership with Canopy Growth, the world’s largest cannabis cultivator, with the goal of developing a range of cannabis-infused drinks.

A shift in consumer preferences from sugary soft drinks to health-conscious alternatives is another significant trend contributing to the growth of cannabis beverages. These beverages often contain low sugar content, aligning with consumer health priorities. Additionally, they are gaining popularity as a smoke-free and edibles-free alternative to traditional marijuana consumption methods such as smoking or ingesting infused edibles like cookies, brownies, gummies, and candies. The growth of off-trade sales channels—including hotels, cafes, restaurants, clubs, and lounges—is further increasing the accessibility and attractiveness of cannabis beverages, helping them reach a broader audience.

A substantial driver of this market is the rising demand from millennial consumers, who represent a large and influential segment. According to a 2017 Yahoo News survey, the majority of the 55 million recreational cannabis users in the United States belonged to the millennial generation. Most of these individuals reportedly used cannabis in social settings, with only 25% consuming it alone. Moreover, a decade-long study conducted by researchers at the University of Connecticut and Georgia State University, completed in 2017, found that in U.S. counties where marijuana was legalized, purchases of wine and beer declined by approximately 15%, indicating a notable shift in consumer behavior toward cannabis-based alternatives.

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The FAQs about the Cannabis Beverages Market highlight its size, growth rate, key players, and technological segments.

1. What is driving the growth of the cannabis beverages market?

The market is experiencing rapid growth due to factors such as increased legalization of cannabis, a rise in health-conscious consumers shifting from alcoholic beverages to cannabis-infused options, and the popularity of wellness products, which are driving demand for cannabis beverages.

2. What are the different types of cannabis beverages?

• Cannabis beverages can be broadly categorized into two main types:

• Alcoholic Cannabis Beverages: Infused with THC, offering psychoactive effects similar to traditional alcoholic drinks.

• Non-Alcoholic Cannabis Beverages: Often infused with CBD, they do not produce a high and appeal to health-conscious consumers looking for relaxation or wellness benefits.

3. What are the major companies in the cannabis beverages market?

• CANN SOCIAL TONICS

• ARTET, LLC

• VCC BRANDS (CQ Drinks)

• Keef Brands

• BellRock Brands (Dixie Brands)

• Aphria Inc. (Tilray)

• Canopy Growth (Tweed)

• FABLE

• Mary Jones

• Teapot (Boston Beer Company, Inc.)

4. What are the potential health benefits of cannabis beverages?

Cannabis beverages, particularly those infused with CBD, are touted for potential benefits such as anxiety relief, anti-inflammatory properties, and improved sleep quality. However, it's essential for consumers to consult healthcare professionals before trying cannabis products for health benefits.

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