The global cannabis beverage market has witnessed rapid growth in terms of value and volume, in the past few years. Increasing penetration of cannabis-based products in the market, owing to the rising awareness among consumers regarding the medical and therapeutic benefits of cannabis is expected to favour the market growth. On account of the rise in the consumption of cannabis, market players are developing food products infused with cannabis extracts. These include cannabis-infused beverages which are healthier alternatives to common methods of cannabis consumption such as smoking and vaping.
The global cannabis beverage market is expected to exhibit a CAGR of 38.3% over the forecast period (2019-2027). Increasing demand for cannabis-infused food & beverage products and increasing focus on offering new cannabis beverages which contain organic ingredients are expected to drive the market growth during the forecast period. This is mainly due to increasing health concerns as well as awareness regarding calorie-intake among consumers.
On the basis of the distribution channel, the global cannabis beverage market is segmented into convenience stores, hypermarkets, supermarkets, and online. Among these, the online segment accounted for a significant market revenue share in the global cannabis beverage market in 2018, owing to enhanced convenience and availability of varied product choices. Legalization of cannabis in different countries such as U.S., Canada and Mexico, for both recreational and medicinal purposes, has created better opportunities for licensed supermarkets and hypermarkets to display their cannabis-based products without restrictions.
Among region, the market in Europe is expected to witness for substantial growth in terms of value in the next few years. Governments in countries such as Germany, France, Italy and others have legalized the use and possession of cannabis-based products for medical purposes. Increasing social acceptance for cannabis beverages over alcohol among consumers is expected to fuel the growth of the global cannabis beverage market in the region in the coming years.
One of the key challenges for manufacturers is to dilute the taste of different cannabis extracts used during infusion. Cannabis possesses a distinct grassy and pungent odour which is required to be weakened by the addition of flavourings, food additives and taste enhancers. Companies are focused on research and development of distillates of the cannabis extracts which can dampen the peculiar flavour and odour of cannabis in the beverages.
Furthermore, several key players are focused on partnerships, in order to expand their presence. For instance, in Jan 2020, High Tide Inc., a Canadian based, manufacturer and wholesale distributor of cannabis-based products and smoking accessories, acquired Canna Cabana, a supplier of cannabis products in Canada. The acquisition was done with the aim of increasing High Tide Inc.'s market presence in the retail sector.