CBD-Infused Drinks Market Size, Share, Growth and Industry Analysis by Price (Alcoholic Drinks, And, Non-Alcoholic Drinks), By Application (Mass Merchandiser, Specialty Stores, Online Retail, And, Others), Regional Insights, and Forecast To 2032

Updated On: 29 April 2024

REPORT OVERVIEW

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The global CBD-infused drinks market is expected to be worth 3800.0 million in 2021. As per our research, the market is projected to touch USD 15000.0 million by 2027 with a CAGR of 25.71% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

CBD-infused drinks have gained popularity as a novel and convenient way to enjoy the potential benefits of cannabidiol (CBD). These beverages typically combine CBD extracts with various liquids like water, tea, or even soda, offering a refreshing and enjoyable consumption experience. CBD, a non-psychoactive compound derived from the cannabis plant, is believed to have potential therapeutic properties, such as reducing anxiety and promoting relaxation.

These drinks provide a discreet and precise way to incorporate CBD into one's wellness routine, making them appealing to a wide range of consumers seeking relaxation and potential health benefits without the intoxicating effects of THC. All of these factors have played an important role in increasing CBD-infused drinks market growth.

COVID-19 impact: Strict Regulations and Uncertainty Decreased Market Growth

The pandemic of COVID-19 had an adverse impact on all the industries and sectors throughout the world. The COVID-19 pandemic has had a mixed impact on these drinks. On one hand, the demand for wellness products, including CBD beverages, surged as consumers sought stress relief and relaxation during lockdowns. This led to increased sales and product innovation within the CBD-infused drink market.

 However, the pandemic also disrupted supply chains, making it challenging to source CBD and other ingredients, resulting in occasional shortages and production delays. Additionally, regulations and uncertainty around CBD's legal status in some regions created hurdles for market growth. Overall, while COVID-19 boosted consumer interest in these drinks, it also posed logistical and regulatory challenges for the industry.

LATEST TRENDS

"Growing Emphasis on Flavor and Variety to Increase Market Growth"

In the realm of CBD-infused drinks, innovation is flourishing. New formulations are emerging with precise dosages and enhanced bioavailability, ensuring consumers receive consistent and effective CBD benefits. Nanoemulsion technology, for instance, improves the solubility of CBD in beverages, enhancing its absorption in the body. There's a growing emphasis on flavor and variety, with creative blends like CBD-infused sparkling water, herbal teas, and even cold-brew coffees hitting the market.

Sustainable packaging and eco-friendly practices are also becoming priorities for companies. Furthermore, customization options, where consumers can tailor CBD dosage to their needs, are gaining traction. These innovations are reshaping the CBD beverage landscape, appealing to a broader audience seeking wellness and relaxation benefits.

SEGMENTATION

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• By Price:

The market can be divided on the basis of price into the following segments:

Alcoholic drinks, and, non-alcoholic drinks.

The alcoholic drinks segment is projected to hold the dominant market share through 2028 the forecasting period.

• By Application:

The market can be divided on the basis of application into the following segments:

Mass merchandiser, specialty stores, online retail, and, others.

 The mass merchandiser segment is predicted to dominate the market through 2028.

DRIVING FACTORS

"Growing Desire for Convenient and Discreet Consumption Methods to Amplify Market Growth"

Several key driving factors are fueling the popularity of these drinks. Firstly, the increasing awareness of CBD's potential health benefits, such as stress relief and anxiety reduction, has attracted consumers seeking natural wellness solutions. The growing trend towards healthier beverage choices also plays a significant role, as these drinks offer an alternative to sugary and alcoholic beverages.

Moreover, changing regulations and a more favorable legal environment in many regions have encouraged product innovation and market expansion. Additionally, the desire for convenient and discreet consumption methods contributes to the rising demand for these drinks, aligning with modern lifestyles and wellness trends. All of the above-mentioned factors are driving factors CBD-infused drinks market share.

"Increasing Acceptance of Cannabis Derived Products to Drive Market Growth"

Beyond health and regulatory factors, several other driving forces propel the growth of CBD-infused drinks. The increasing acceptance of cannabis-derived products in society fosters a more positive perception of CBD, reducing stigma and expanding its consumer base. Marketing and branding efforts also contribute, with companies highlighting the natural and holistic attributes of CBD-infused beverages.

The demand for alternative relaxation and stress relief methods, especially in the wake of the COVID-19 pandemic, continues to boost sales. Furthermore, ongoing research into CBD's potential therapeutic applications fuels consumer curiosity and confidence in these products. These multifaceted factors collectively shape a promising future for these drinks in the beverage industry.

RESTRAINING FACTOR

"Quality Control and Consistency Concerns to Deteriorate Market Growth"

Several restraining factors challenge the CBD-infused drinks market. Regulatory ambiguity and variations in CBD legality across regions create compliance complexities, hindering market expansion. Quality control and consistency are concerns, as ensuring precise CBD dosage and effectiveness remains a challenge. Consumer skepticism due to limited scientific research and the potential for adverse effects also acts as a restraint.

Additionally, the cost of CBD extraction and the premium price of these drinks deter price-sensitive consumers. Lastly, competition from other CBD products like oils and capsules provides alternatives, potentially limiting market growth. These factors collectively underscore the need for industry standardization and further research to address uncertainties.

Regional Insights

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"North America to Dominate Market owing to Increase in Consumer Demand"

North America, particularly the U.S., stands as the leading region in the CBD-infused drinks market. The U.S. market has experienced remarkable growth due to evolving regulations and increased consumer acceptance of CBD. A robust and innovative beverage industry, coupled with a large population seeking wellness products, drives demand.

Additionally, the presence of major CBD-infused beverage manufacturers and favorable state-level cannabis legalization initiatives contribute to its dominance. Market research predicts continued growth in North America, reflecting its role as a trailblazer in these drinks sector, with diverse product offerings ranging from sparkling waters to specialty coffees and teas.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profile

• Cannabiniers (U.S.)
• Lagunitas Brewing Company (U.S.)
• The Alkaline Water Company Inc. (U.S.)
• Cann (U.S.)
• New Age Beverages Corporation (U.S.)
• Daytrip Beverages (U.S.)
• UbU Beverages Ltd. (Canada)
• Sprig (U.S.)
• Puration Inc. (U.S.)
• K-Zen Beverages Inc. (U.S.)
• Honeydrop Beverages Inc. (U.S.)
• G&Juice (U.S.)

Report Coverage

The report provides an insight into industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations. The report also lists the key industry players to understand the competition.