Non-alcoholic CBD-infused beverages are the fastest-growing segment of the “drinkables” market, largely driven by the growing demand for wellness products as a replacement for soft drinks and alcohol.
The global market for cannabis-infused beverages could reach nearly three billion dollars within the next five years, according to a new report by Grand View Research.
The report predicts that the infused beverage market will grow at a Compound Annual Growth Rate (CAGR) of 17.8 percent, eventually reaching $2.8 billion in annual sales by 2025. The increasing demand for these products is largely driven by millennials, women, and newcomers who have never used cannabis products before.
Alcohol-free CBD beverages are the fastest-growing segment of this new market, thanks to the growing popularity of wellness drinks. In recent years, many consumers have switched from sugar-packed soft drinks to healthy, sugar-free wellness beverages. Sugar-free cannabis beverages are also becoming a popular alternative to weed edibles like brownies, gummies, or other traditionally high-sugar snacks.
North America is predicted to host the largest, and fastest-growing, infused beverage market during the forecast period. Canada, where infused beverages just became legal last fall, is expected to drive this growth, but the growing number of adult-use and medical marijuana states in the US will also increase the demand for legal weed drinks. Europe is predicted to see a spike in infused beverage sales over the next five years, as well, especially in the Netherlands, where infused beverages are sold in cannabis cafes.
The cannabis beverage market is highly fragmented due to the wide range of companies getting involved, according to Grand View. In addition to a vast number of small startups and local businesses, some massive multinational corporations are also getting in on the infused drink game. The alcohol industry has taken particular interest in launching weed beverages, especially after researchers discovered that alcohol sales are decreasing in states and countries where cannabis is legal.