Global Cannabis Food and Beverages Market Grows Tremendously at a CAGR of 37.3%

Introduction

Hemp is an alternate term for cannabis that is occasionally used. However, it only applies to cannabis strains cultivated for purposes other than narcotic production. Since ancient times, hemp seeds, oil, fiber, and leaves have been processed into beverages, vegetables, and recreational drugs. There are over 100 types of cannabinoids, with tetrahydrocannabinol (THC) and cannabidiol (CBD) being the most popular. CBD (Cannabidiol)-containing beverages are derived from a non-psychoactive component of cannabis obtained from hemp and marijuana plants. This non-psychoactive substance can be infused with non-alcoholic beer, water, coffee, or tea. CBD may be used to treat impairments in mobility and cognition and alleviate pain and anxiety.

Additionally, CBD-containing beverages promote healthy digestion, eliminate impurities, fortify the immune system, regulate blood pressure, and reduce the risk of cardiovascular disease. Several new markets for CBD beverages have emerged in North America as more people who were previously hesitant to use CBD are becoming interested in its benefits. Cannabidiol-containing beverages are available in various product types, plant-based options, and other formulations.

Market Dynamics

Legalizing of Recreational or Medical Cannabis in Various Countries Drives the Global Market

In the majority of nations, cannabis consumption for recreational purposes was unlawful; however, the incorporation of cannabis into products intended for either recreational or medical use has contributed to the growth of the cannabis market in recent years. As a result, the industry has experienced significant growth over the past few years, which is anticipated to continue. As a result of the discovery of cannabis's health benefits, some nations have legalized its use, causing the cannabis food and beverages market to expand substantially.

Furthermore, in light of the present trend toward legalizing cannabis in large nations, it is anticipated that smaller nations will legalize cannabis in medical or recreational beverages. This occurrence is anticipated to propel the market during the forecast period.

Initiative of Legalizing Cannabis-Based Food and Beverages Creates Tremendous Opportunities

Cannabis has been shown to benefit human health, prompting many nations to legalize its use in the food and beverage industry. This is because cannabis can create a wide variety of edibles and beverages. In light of the recent legalization of cannabis in Uruguay and Canada, however, some other nations are taking steps to integrate cannabis into their mainstream markets.

Historically, it was prohibited in some countries. During the period covered by the forecast, it is anticipated that the decision to legalize cannabis will result in the establishment of lucrative opportunities. This is because it is expected to facilitate the entry of new market participants and the development of new product lines.

Regional Analysis

North America is the most significant global cannabis food and beverages market shareholder and is estimated to exhibit a CAGR of 26.0% over the forecast period. The global market for foods and drinks infused with cannabis has seen substantial growth due to the cannabis industry's recent decision to authorize its use in the food and beverage industry. As a direct consequence of the recent legalization of cannabis in Canada, many companies are entering the cannabis-infused foods and beverages market. When purchasing edibles and beverages containing cannabis, customers can now access a diverse range of options thanks to the industry's rapid expansion. The growth of the market for foods and drinks infused with cannabis in this region will benefit from the entrance of new firms into the industry.

Europe is anticipated to exhibit a CAGR of 24.8% over the forecast period. The paper largely focuses on the United Kingdom, Germany, the Netherlands, and Switzerland while discussing the cannabis food and beverage sector in Europe. Since these countries are the most developed in the region, they have some of the highest GDPs in the world. As a result, they are taking the lead in the European market and helping boost the European economy. After the prohibition on cannabis was overturned, there was a subsequent surge in the market share of cannabis-infused foods and beverages across the economies of Europe. Since many years ago, the European food and beverage business has been known for being on the cutting edge of culinary innovation. To live up to this reputation, businesses in the European region are constantly developing new products that contain cannabis as an ingredient. The expansion of the market for cannabis-infused foods and drinks in this region is being driven by the introduction of novel cannabis-infused foods and beverages.

Key Highlights

• The global cannabis food and beverages market was valued at USD 0.4 billion in 2022. It is estimated to reach USD 6.94 billion by 2031, growing at a CAGR of 37.3% during the forecast period (2023–2031).
• Based on product type, the global cannabis food and beverages market is bifurcated into bakery products, chocolate, cereal bars, candy, beverages, ice cream, and others. The bakery products segment dominates the global market and is projected to exhibit a CAGR of 27.5% over the forecast period.
• Based on the distribution channel, the global cannabis food and beverages market is segmented into mass merchandisers, specialty stores, online stores, and others. The Specialty Store segment dominates the global market and is predicted to exhibit a CAGR of 26.1% during the forecast period.
• North America is the most significant global cannabis food and beverages market shareholder and is estimated to exhibit a CAGR of 26.0% over the forecast period.

Competitive Players

Competitive Players

1. Alkaline88 LLC.
2. Beverages Trade Network
3. Cannabis Sativa Inc.
4. Cannara Biotech Inc
5. CannTrust Holdings Inc
6. Coalition Brewing
7. Coca-Cola
8. Dixie Brands Inc.
9. Dutch Windmill Spirits
10. Energy Drink
11. GENERAL CANNABIS CORP.
12. HEXO Corp
13. Kaios Beverage Corporation
14. Lagunitas Brewing Company
15. Natural Extractions
16. Organigram Holdings Inc.
17. Phivida
18. Rocky Mountain High
19. The Alkaline Water Company
20. The Supreme Cannabis Company Inc.
21. Youngevity International Inc.

Recent Developments

Market News

• August 2021- Cann, a THC (tetrahydrocannabinol) beverage manufacturer, announced the launch of Passion Peach, a first-of-its-kind cannabis-infused caffeinated social tonic. The manufacturer launched this product line to offer all-natural caffeine with a microdose of THC (tetrahydrocannabinol) to consumers who want alternatives to alcohol.
• November 2021- Molecule Holdings Inc., a Canada-based craft-focused cannabis beverage production company, launched Canajo, the coffee-flavored cannabis beverage. This new product portfolio contains coffee-inspired flavors with an assortment of THC (tetrahydrocannabinol) and CBD (Cannabidiol) levels designed for various cannabis users.

 

Segmentation

Global Cannabis Food and Beverages Market: Segmentation

By Product Type

• Bakery products
• Chocolate
• Cereal bars
• Candy
• Beverages
• Ice cream
• Others

By Distribution Channel

• Mass Merchandisers
• Specialty Store
• Online Stores
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA