Cannabidiol (CBD) found in cannabis family plants, both hemp and marijuana. Hemp is legal production in commercial quantity is allowed in many countries such as Australia, the United States, the UK and Canada. According to Forbes, As of May 1, 2019, in the U.S., medical cannabis get legalization in 33 states and usage of cannabis get legalized for adult use in 10 states. But, at the federal level, the struggle for legalization is still on roll. Irrespective of its legalization issue, CBD-infused foods and beverages products are attracting consumers due to benefits of wellness and health. CBD consist of many health benefits of medical cannabis and highly effective to treat many diseases such as neuro related disorders, stress, anxiety, insomnia, cancer and many more. CBD beverages are emerging as a new trend and widely accepted element not only to medical problems, but also as a major dietary supplement. Alcohol, coffee, tea, juice, water and beer constitute of marijuana are rapidly gaining the popularity and acceptance among society by a major group of active users. The CBD-infused beverage industry is witnessing significant growth over the forecast period. As per estimations by key players, CBD-infused beverages is expected to witness a market growth of $250m.
CBD plays dual role as a mood enhancer and trendy food and beverage ingredient; a correlation between food and pharma industry. Healthcare industry could be the next emerging platform for CBD, but therapeutic benefits of CBD are still on research phase. Until then, food and beverage industry is leveraging the position, due to FDA approvals and rapid adoption by food and beverage industry.
Drivers and restrain factor of the market
The CBD-infused beverage market is expected to witness a positive and rapid growth over the forecast period. Drivers supporting the market growth are high acceptance of cannabis-infused drinks among large group of millennial population, Cannabis legalization, and potential consumers are not shy spenders.
CBD-infused drinks will account major consumption from Baby Boomers. Whereas, Gen Zsand Millennials would be the largest consumer base for the market, due to legalization of Cannabis in more parts of the country or even in major other parts of the world. Moreover, potential consumers of CBD-infused beverages are not shy spenders. For instance, in Los Angeles, consumers are willing to pay an extra $5 for a few drops of CBD in their drinks.
For instance, Cannabiniers, announced expansion of its new beverage portfolio. Two Roots Brewing Co. and Just Society Cold Brew Beverages, both joined the cannabis infused beverage collection of the company.
Major players in the market
Major players included while analyzing the CBD-infused beverage market are The Alkaline Water Company, Canopy Growth Corp, Coca-Cola, Molson Coors Brewing, Creso Pharma, Youngevity International Inc., Sprig, Growpacker, Mugglehead, Kickback, New Age Beverages Corporation (Marley) and Recess,
As more players are penetrating the industrial arena with novel products making their way into the market; the market scenario will change rapidly over the forecast period.
Considering food and beverage industry, manufacturers have consumers andcapital, so apart from regulatory compliances, players will not face any obstacle while operating in the respective market. Hence, easy market entry with low barriers.
Recent key developments in the market
Molson Coors, a beverage producer announced a partnership or joint venture with HEXO (known as Truss), a pot grower in 2018. The joint venture between companies is expected to increase the market share of nonalcoholic cannabis-infused beverages.
In December 2018, Anheuser-Busch InBev and Tilray announced the contribution of $50 million each to a collective $100 million joint venture for R&D on nonalcoholic cannabis-infused beverages in Canada.
In December 2018, Altria announced the investment of $1.8 billion in Cronos Group, a Canadian cannabis producer.
Leading region and fastest growing region
Regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America and Middle East and Africa. Regionally, Geographically, North America dominate the global CBD-Infused Beverages Market. In the U.S., the FDA approved the CBD drug Epidiolexto treat epilepsy disorders. In 2018, the WHO recommended that CBD will remain unscheduled. Hence, these regulatory approvals by organizations are supporting adoption of CBD in the market, thus boosting the market growth during the forecast period.
Global CBD-Infused Beverages market is segmented on the basis of product type and application to limit the market scope for study. In which product type segment is sub-segmented into coffees and sodas. Whereas, the application segment of the market is sub-segmented into online sales and offline sales.
Currently, the company's flagship product, the unflavored Alkaline88, is being sold in all 50 states through 47,500 supermarket chains and grocery stores like Safeway/Albertsons, Walmart, Kroger and CVS. Once its CBD-infused beverage products begin rollout, the company could make them available in these supermarket chains. Its distribution network also comprises more than 150,000 stores, which include 9 of the 10 largest retailers in the US and two of the biggest retailers in the world.
A cannabis-infused beverage meanwhile could be sold in supermarket chains. This is the direction being taken by Aaron Keay, chairman of the Scottsdale, Arizona-based The Alkaline Water Co.