Global Cannabis Infused Drinks Market Overview
Cannabis Infused Drinks Market Size was estimated at 0.22 (USD Billion) in 2022.The Cannabis Infused Drinks Industry is expected to grow from 0.27 (USD Billion) in 2023 to 1.6 (USD Billion) by 2032. The Cannabis Infused Drinks Market CAGR (growth rate) is expected to be around 22.05% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Cannabis Infused Drinks Market Trends Highlighted
One of the factors driving the recent surge in the cannabis-infused beverages industry is that it has become legal to use marijuana in several countries and more people have accepted its use. The expansion of the cannabis sector has resulted in new opportunities for various firms, with drinks being a common choice for those who want cannabis effects but do not want to smoke or vape.
Moreover, investigations into various health gains associated with weed have also driven demand up as clients seek other ways of consuming this substance. This has led to heavy investment by many companies in R&D on attractive and innovative weed-based drinks.
The market trends are leaning towards low-dose and non-alcoholic marijuana infused drinks as lifestyles change with consumers looking for easier ways to enjoy benefits derived from using marijuana. In response, these businesses will look at healthier options given the shift towards more health-conscious customers, which will influence future expectations about this specific market segment, among many others.
Cannabis Infused Drinks Market Drivers
Rising Popularity of Cannabis-Infused Beverages
The increasing popularity of cannabis-infused beverages is one of the primary drivers of the cannabis-infused drinks market. Consumers are increasingly seeking out alternative ways to consume cannabis, and cannabis-infused beverages offer a convenient and discreet option. These beverages are available in a variety of flavors and potencies, making them appealing to a wide range of consumers. The growing popularity of cannabis-infused beverages is expected to continue to drive the growth of the cannabis-infused drinks market in the coming years. In addition to the growing popularity of cannabis-infused beverages, there are a number of other factors that are contributing to the growth of the cannabis-infused drinks market.
These include the increasing legalization of cannabis in various countries and states. The growing awareness of the potential health benefits of cannabis. The development of new and innovative cannabis-infused beverage products. The increasing availability of cannabis-infused beverages in retail stores and online. The cannabis-infused drinks market is expected to continue to grow rapidly in the coming years.As more and more consumers become aware of the benefits of cannabis-infused beverages, the demand for these products is expected to increase. This growth is expected to be particularly strong in emerging markets where the legalization of cannabis is still in its early stages.
Legalization of Cannabis in Various Countries and States
The legalization of cannabis in various countries and states is another major driver of the cannabis-infused drinks market. As more and more governments legalize cannabis, the demand for cannabis-infused products, including beverages, is expected to increase. The legalization of cannabis is also leading to the development of new and innovative cannabis-infused beverage products. For example, some companies are now developing cannabis-infused beverages that mimic the taste and effects of traditional alcoholic beverages, such as beer and wine.
Growing Awareness of the Potential Health Benefits of Cannabis
The growing awareness of the potential health benefits of cannabis is also contributing to the growth of the cannabis-infused drinks market. Cannabis has been shown to have a number of potential health benefits, including reducing pain, inflammation, and anxiety. Cannabis-infused beverages offer a convenient and discreet way to consume cannabis and experience its potential health benefits.
Cannabis Infused Drinks Market Segment Insights
Cannabis Infused Drinks Market Product Type Insights
The Cannabis Infused Drinks Market is segmented into product type, which includes alcoholic cannabis infused drinks and non-alcoholic cannabis infused drinks. Alcoholic cannabis infused drinks are expected to hold a significant market share in the coming years. The growing popularity of craft beer and the increasing demand for cannabis-infused beverages are driving the growth of this segment. In 2023, the alcoholic cannabis infused drinks segment was valued at 0.12 (USD Billion) and is projected to reach 0.72 (USD Billion) by 2032, exhibiting a CAGR of 22.8%.On the other hand, the non-alcoholic cannabis infused drinks segment is also expected to witness substantial growth during the forecast period.
The rising health consciousness among consumers and the increasing availability of non-alcoholic cannabis infused beverages are contributing to the growth of this segment. In 2023, the non-alcoholic cannabis infused drinks segment was valued at 0.15 (USD Billion) and is projected to reach 0.88 (USD Billion) by 2032, exhibiting a CAGR of 21.3%. Overall, the Cannabis Infused Drinks Market is expected to witness robust growth in the coming years, driven by the increasing legalization of cannabis for recreational and medicinal use, the growing popularity of cannabis-infused beverages, and the rising health consciousness among consumers.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Cannabis Infused Drinks Market Distribution Channel Insights
The Cannabis Infused Drinks Market Segmentation by Distribution Channel comprises Online and Offline (Retail Stores, Dispensaries, Bars, Restaurants) segments. In 2023, the offline segment dominated the market and accounted for a revenue share of over 75.0%. This is attributed to the fact that offline channels provide consumers with a more personalized and interactive shopping experience, allowing them to interact with knowledgeable staff and sample products before making a purchase.
Furthermore, offline channels often offer a wider selection of products and brands, making them a more convenient option for consumers.However, the online segment is expected to grow at a faster CAGR over the forecast period, owing to the increasing popularity of e-commerce and the convenience it offers to consumers. The growth of the online segment is also driven by the rising number of cannabis-infused drink startups that are leveraging online platforms to reach a wider customer base.
Cannabis Infused Drinks Market Cannabinoid Content Insights
The Cannabinoid Content segment plays a crucial role in shaping the Cannabis Infused Drinks Market. It categorizes products based on their cannabinoid content, namely 'High THC', 'Low THC', and 'CBD Only'. Each category caters to specific consumer preferences and legal regulations. 'High THC' drinks offer psychoactive effects due to higher levels of tetrahydrocannabinol (THC). In 2023, this segment accounted for a significant share of the market, driven by demand in regions where recreational cannabis is legal.'Low THC' drinks provide milder psychoactive effects with lower THC levels, appealing to consumers seeking relaxation without intoxication.
This segment is anticipated to experience steady growth as it caters to a broader audience, including those in regions with stricter cannabis laws. 'CBD Only' drinks contain cannabidiol (CBD) without THC, making them non-psychoactive. CBD's potential therapeutic benefits have fueled the popularity of this segment, with consumers using it for stress relief, pain management, and sleep improvement. It is expected to witness robust growth in the coming years due to increasing awareness of CBD's health properties.
Cannabis Infused Drinks Market Flavor Insights
The flavor segment plays a crucial role in shaping the Cannabis Infused Drinks Market. In 2023, the Fruit-Based segment held the largest market share of around 35%, primarily due to the refreshing and natural taste of fruit flavors. Herb-Based flavors are gaining popularity, accounting for approximately 28% of the market, as consumers seek more earthy and botanical profiles. Chocolate-Based flavors remain a classic choice, capturing around 25% of the market, appealing to those who prefer a sweeter and indulgent taste. The Others segment, which includes unique and innovative flavors like floral, spice, and savory, is expected to witness significant growth in the coming years, driven by the increasing demand for experimental and differentiated products.The Cannabis Infused Drinks Market is projected to reach a revenue of around USD 0.45 billion in 2024, showcasing the immense growth potential of this dynamic market.
Cannabis Infused Drinks Market Regional Insights
The regional segmentation of the Cannabis Infused Drinks Market provides insights into the market's geographic distribution and growth potential. North America is expected to dominate the market, with a significant share in 2023 and is projected to maintain its dominance throughout the forecast period. The legalization of cannabis in several states in the US and Canada has created a favorable regulatory environment for the growth of the cannabis industry. Europe is another key region, with increasing demand for cannabis-infused drinks driven by growing awareness of their health benefits and the relaxation of regulations in some countries.The APAC region is anticipated to witness substantial growth in the coming years due to the rising popularity of cannabis-infused beverages as a healthier alternative to traditional alcoholic drinks. South America and MEA are expected to contribute a relatively smaller share to the market but are projected to exhibit promising growth rates as these regions explore the potential of cannabis-infused drinks.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Cannabis Infused Drinks Market Key Players And Competitive Insights
Major players in the Cannabis Infused Drinks Market industry are focusing on launching innovative products to cater to the evolving consumer demand. Leading Cannabis Infused Drinks Market players are also investing in research and development to develop new formulations and flavors. The Cannabis Infused Drinks Market is highly competitive, with a number of major players vying for market share. Some of the key players in this market include Heineken NV, Constellation Brands, Inc., Molson Coors Beverage Company, and Anheuser-Busch InBev. These companies are investing heavily in marketing and advertising campaigns to promote their cannabis-infused drinks. They are also expanding their distribution networks to reach more consumers. The competitive landscape of the Cannabis Infused Drinks Market is expected to remain intense in the coming years.Heineken NV is one of the leading players in the Cannabis Infused Drinks Market.
The company has a strong presence and a wide portfolio of beer and other alcoholic beverages. Heineken NV entered the cannabis-infused drinks market in 2018 with the launch of its Lagunitas Hi-Fi Hops sparkling water infused with THC. The company has since expanded its portfolio of cannabis-infused drinks to include a variety of other products, such as beer, seltzer, and cocktails. Heineken NV is also investing in research and development to develop new cannabis-infused drinks products.Constellation Brands, Inc. is another major player in the Cannabis Infused Drinks Market. The company has a strong presence in the wine and spirits market, and it entered the cannabis-infused drinks market in 2017 with the acquisition of Canopy Growth Corporation. Constellation Brands, Inc. has since launched a number of cannabis-infused drinks products, including beer, wine, and spirits. The company is also investing in research and development to develop new cannabis-infused drinks products.
Key Companies in the Cannabis Infused Drinks Market Include
- Tilray, Inc.
- iAnthus Capital Holdings, Inc.
- Cronos Group Inc.
- Aurora Cannabis Inc.
- The Cronos Group Inc.
- Aphria Inc.
- Hexo Corp.
- Canopy Growth Corporation
- Sundial Growers Inc.
- HEXO Corp.
- The Green Organic Dutchman Holdings Ltd.
- MedMen Enterprises Inc.
- Organigram Holdings Inc.
- Emblem Corp.
Cannabis Infused Drinks Market Industry Developments
The cannabis-infused drinks market is projected to reach USD 1.6 billion by 2032, exhibiting a CAGR of 22.05% during the forecast period. The market growth is attributed to the increasing legalization of cannabis for recreational and medicinal purposes, rising consumer demand for low-calorie and sugar-free beverages, and growing awareness of the health benefits associated with cannabis consumption. Recent developments include the launch of new products by major players, such as Canopy Growth's Tweed Houndstooth & Soda and HEXO's Little Victory Sparkling Beverages. Strategic partnerships and acquisitions are also shaping the market landscape, with companies seeking to expand their product portfolio and geographical reach.
Cannabis Infused Drinks Market Segmentation Insights
Cannabis Infused Drinks Market Product Type Outlook
- Alcoholic Cannabis Infused Drinks
- Non-Alcoholic Cannabis Infused Drinks
Cannabis Infused Drinks Market Distribution Channel Outlook
- Online
- Offline (Retail Stores, Dispensaries, Bars, Restaurants)
Cannabis Infused Drinks Market Cannabinoid Content Outlook
- High THC
- Low THC
- CBD Only
Cannabis Infused Drinks Market Flavor Outlook
- Fruit-Based
- Herb-Based
- Chocolate-Based
- Others
Cannabis Infused Drinks Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
Cannabis Infused Drinks Market Report Scope
| Report Attribute/Metric |
Details |
| Market Size 2022 |
0.22(USD Billion) |
| Market Size 2023 |
0.27(USD Billion) |
| Market Size 2032 |
1.6(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
22.05% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Tilray, Inc., iAnthus Capital Holdings, Inc., Cronos Group Inc., Aurora Cannabis Inc., The Cronos Group Inc., Aphria Inc., Hexo Corp., Canopy Growth Corporation, Sundial Growers Inc., HEXO Corp., The Green Organic Dutchman Holdings Ltd., MedMen Enterprises Inc., Organigram Holdings Inc., Emblem Corp. |
| Segments Covered |
Product Type, Distribution Channel, Cannabinoid Content, Flavor, Regional |
| Key Market Opportunities |
Relaxation and Stress Relief Health and Wellness Social and Recreational Events Medical Applications Improved Sleep |
| Key Market Dynamics |
Key Market DynamicsIncreasing legalization of cannabis Growing demand for functional beverages Innovation and product diversification Changing consumer preferences Strategic partnerships and acquisitions |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The cannabis infused drinks market size is expected to reach USD 1.6 billion by 2032, exhibiting a CAGR of 22.05% during the forecast period. In 2023, the market size was valued at USD 0.27 billion.
North America is expected to dominate the cannabis infused drinks market throughout the forecast period, owing to the growing legalization of cannabis in the region. Europe is also expected to witness significant growth due to the increasing acceptance of cannabis for medical and recreational purposes.
Cannabis infused drinks are primarily used for recreational purposes, but they also have therapeutic applications. They are used to alleviate pain, reduce anxiety, and improve sleep.
Some of the key players in the cannabis infused drinks market include Canopy Growth Corporation, The Cronos Group, Inc., Aurora Cannabis Inc., MedMen Enterprises Inc., and Heineken NV.
The growing legalization of cannabis, increasing consumer awareness of the potential health benefits of cannabis, and rising demand for convenient and discreet ways to consume cannabis are the key factors driving the growth of the cannabis infused drinks market.
The cannabis infused drinks market faces challenges such as regulatory restrictions, lack of consumer awareness, and competition from traditional alcoholic beverages.
The future of the cannabis infused drinks market is expected to be shaped by trends such as the increasing popularity of cannabidiol (CBD) products, the development of new and innovative products, and the growing demand for premium and craft cannabis infused drinks.
Cannabis infused drinks are primarily distributed through dispensaries, online retailers, and bars and restaurants.
The COVID-19 pandemic had a positive impact on the cannabis infused drinks market. The closure of bars and restaurants led to an increase in the consumption of cannabis infused drinks at home.
The regulatory landscape for cannabis infused drinks varies by country. In some countries, cannabis infused drinks are legal, while in others, they are still prohibited.
