Cannabis Beverage Sales Could Hit $2.5 Billion – Report

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

A new report reveals cannabis beverage sales will reach $2.8 billion by 2025, expanding at an annual compounded rate of 17.8%.

The market is highly fragmented in nature, owing to the presence of several small and medium scale companies. The majority of the companies are based in Canada, owing to the legalization of marijuana for medical and recreational purposes in the country.

Cannabis Beverage Sales Could Hit $2.5 Billion - Report Brandspurng
Photo by Kimzy Nanney

The rise in the legalization of marijuana in order to eradicate the black market and to boost the tax revenue from legal sales of marijuana products is anticipated to positively influence the growth.

- Advertisement -

The rising popularity of wellness drinks is also expected to support the demand over the forecast period. The legalization of cannabis for medical and recreational purposes has had a strong impact on the sales of alcoholic drinks.

As a result, many alcohol manufacturers are investing in the growing trend of marijuana-infused drinks. For instance, Lagunitas, Heineken’s fast-growing California beer label, launched Hi-Fi Hops, which is a cannabis-based beverage with zero calories or carbs and is infused with Cannabidiol (CBD) and Tetrahydrocannabinol (THC).

In 2017, Constellation Brands, the third-largest beer manufacturer in the U.S., entered into a partnership with Canopy Growth – the world’s largest marijuana grower, to develop cannabis-infused beverages.

Consumers are shifting their preference from soft drinks to wellness drinks leading to the increasing sale of cannabis beverages. Low sugar content in drinks is the major driving factor for the growth of the market.

- Advertisement -

Also, consumers prefer these beverages as an alternative to cannabis smoking and consumption of marijuana-infused chocolates, cookies, brownies, and confectionaries like gummies and candies. Off-trade sales channels such as hotels, cafes, restaurants, clubs, and lounges are expected to boost the popularity of the product among consumers.

Read Also:  Sigh of Relief As CRR Refund and SWAP Maturities Inflows Boost Interbank System liquidity

Strong demand for cannabis beverages from millennials is also anticipated to drive the market growth. As per a 2017 Yahoo News poll, the majority of the 55 million recreational marijuana users in the U.S. were millennials. Most millennials consume marijuana socially and only 25% of them consume it alone.

Read Also:  Sigh of Relief As CRR Refund and SWAP Maturities Inflows Boost Interbank System liquidity

A 10-year study by researchers at the University of Connecticut and Georgia State University, completed in 2017, found that in U.S. counties where marijuana was legalized, wine and beer purchases decreased by 15%.

North America is estimated to be the fastest and largest market over the forecast period. The growth is majorly driven by the legalization of marijuana for medical and recreational purposes.

- Advertisement -

As per the National Conference of State Legislatures, a total of 33 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands have approved publicly available medical cannabis programs, resulting in the increased launch of several cannabis drinks. Also, 13 states in the U.S. allow the use of low THC and high CBD products for medical purposes, resulting in high demand for CBD infused cannabis drinks in the region.

Europe is estimated to witness strong growth over the forecast period, owing to a rise in cannabis consumers in the region. As per the Cannabis Trade Association, the number of CBD users in the U.K. increased from 125,000 in 2016 to 250,000 in 2017.

Also, the companies operating in the region are launching products to keep up with the growing trend of wellness drinks. For instance, Manchester-based CBD Ultra and Cloud 9 Brewing have launched U.K.’s first CBD Session IPA beer brewed with Cannabis Sativa extract.

- Advertisement -
Cannabis Beverage Sales Could Hit $2.5 Billion - Report - Brand SpurCannabis Beverage Sales Could Hit $2.5 Billion - Report - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

1 COMMENT

  1. […] CBD industry is growing, and this is not surprising for many. Read more about the industry on this page here. […]

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Cannabis Beverage Sales Could Hit $2.5 Billion - Report - Brand SpurCannabis Beverage Sales Could Hit $2.5 Billion - Report - Brand Spur

Latest News

Berger Paints Soaring Costs Undermines Topline Growth

...Topline Maintains Growth Momentum In 2020FY, Berger Paints Plc sustained its growth momentum despite the challenges faced during the year....
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Cannabis Beverage Sales Could Hit $2.5 Billion - Report - Brand SpurCannabis Beverage Sales Could Hit $2.5 Billion - Report - Brand Spur