North America Statistics Representing CBD based Beverages Market Scenario
CBD (Cannabidiol) beverages are derived from a non-psychoactive molecule found in cannabis, which is extracted from marijuana and hemp plants. This non-psychoactive molecule can be infused with non-alcoholic beer, water, coffee, and tea. CBD has the potential to reduce pain and anxiety, and to cure cognition and movement disorders. Other amazing healing properties of CBD beverages includes proper digestion, flush toxins, boosts immune system, maintains blood pressure, and reduces the chances of heart diseases. These properties of CBD are attracting the attention of many people who were skeptical about using the product, which, in turn, is creating several untapped opportunities for the CBD beverages market in North America. Cannabidiol based beverages are available in different product types, different plant based, and has several other varieties.
The global CBD market was valued at USD 3,001.29 million at 2018, and is expected to reach USD 7,523.17 million during the forecast period 2019–2024.
To better understand the CBD market, we have segmented the market by type, product type, distribution, and age group, and we have studied each segment in extreme detail.
On the basis of type, the North America CBD beverages market is bifurcated into marijuana-derived and hemp-derived cannabis. As the name suggests, marijuana derived CBD is extracted from marijuana plants that have lush foliage & flowers, and are generally grown and consumed for their intoxicating properties. These plants contain high amount of THC as its predominant cannabinoid and less amount of CBD, which makes them suitable for pharmaceutical products. As per the National Survey on Drug Use and Health (NSDUH), marijuana is most widely used for the manufacturing of pharma grade beverages. Globally, Mexico, Afghanistan, Morocco, Colombia, Paraguay, Jamaica, Canada, Nigeria, India, and the U.S. are the largest producers of marijuana. Whereas, Germany is the major importer of marijuana infused CBD.
In addition, the population in the U.S. are uncovering the hidden benefits of marijuana, which is expected to boost the segmental growth during the forecast period. To spread the awareness about the health benefits of marijuana when used in proper amount, the government of the U.S. have legalized the plant. As per the United States Department of Agriculture (USDA), around 80% of the marijuana is grown in California, Tennessee, Kentucky, Hawaii, and Washington states of the U.S.Hemp-derived CBD is sourced from hemp plants that are primarily grown for their fiber and seeds. This plant contains very less amount of THC and high amount of CBD as compared to Marijuana. Other qualities of hemp based CBD is that it is drug-free, non-psychoactive, and nutritional.
By product type, the CBD beverages market is segmented into beer, water, juice, tea, coffee, and others.
CBD-infused beer is a booming market in the U.S., and it is expected to become an international product in the years to come. Currently, ‘Humboldt Brown Hemp Ale’ and ‘Hop Hash Easy IPA’ are the most popular brands of CBD beer available in the U.S. In addition, CBD beverages are being increasingly preferred by the youth population in the U.S., which is encouraging the brewing companies to launch new products that are unique in flavor, color, and taste. In 2016, TWO FLOWERS IPA launched first ever commercially produced Cannabidiol (CBD) infused beer in the U.S. Similarly, in 2019, ‘Hop & Hemp Brewing Co.’ launched two CBD-infused beer that claims to have change the drinking habits of the consumers.
When infused with water, CBD has the potential to improve digestion, flush toxins, boost the immune system, maintain blood pressure, and prevent heart disease and cancer to some extent. This beverage is witnessing huge demand by athletes as it has properties for maintaining minerals. To address to this demand, Phivida, a premium functional food and beverage company, specially manufactured active hemp extract water for athletes. In 2018, Natural Hemp Company launched CBD infused ‘day one sparking water’, and ‘Daytrip Beverages’.
On the basis of age group, the CBD market is segmented into millennials, Gen-z, and baby boomers.
North America houses the largest millennial population. In 2016, around 79.14 million people were covered under the millennial age group in the region. Today, millennials are looking for a beverage that has the ability to soothe their stress, anxiety and other problems which is caused by drastic change in lifestyle, and increasing work load. CBD beverages has all of these properties, and it is successfully changing the drinking preferences of the millennials on the basis of its health benefits. This is further unlocking several opportunities for the CBD beverages market in North America.
On 17 October 2018, cannabis was legalized in Canada for recreational purposes by the House of Commons passing Bill C-45, the Cannabis Act. After amendments, and just after the legalization various key players started offering CBD infused beverages. In Canada, The demand for CBD beverages is escalating rapidly among the health conscious population. In 2017, around 140,000 acres of cannabis was cultivated in Canada to address to the growing demand of CBD beverages, according to the Congressional Research Service. Apart from this, government funding, support for new cannabis research, and public awareness programs are also driving the market growth. For instance, the Government of Canada and Minister of Health invested USD 24.5 million for funding in R&D to regulate the non-medical use of cannabis.
How the properties of CBD influencing the demand for CBD based beverages in North America? And what is the region doing to promote the use of the same?
Many countries in North America have taken note of the benefits of cannabidiol, one of which is the U.S. For recreational use of cannabis, the country has legalized it in 11 of its states, namely Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington. Legalization of cannabis is soaring the demand and consumption of CBD infused alcoholic and non-alcoholic beverages across North America. For instance, in August 2019, ‘Left Hand Brewing Company’ launched CBD-infused sparkling water for treating dehydration. In addition, legalization of cannabis is also offering lucrative opportunities for the new entrants to seize the opportunity. To seize the opportunity, CannTrust Holdings Inc., HEXO Corp., and Tilray Inc. entered the CBD beverages market.
Some of the key market players are in the CBD beverage market are Alkaline88, LLC, Rocky Mountain High Brands, Phivida, Cannara Biotech Inc, Kickback, Youngevity International, Inc., Recess, and Sprig.
CBD (Cannabidiol) Segmentation
By Product Type
By Regional covered
o North America
o South America
o Western Europe
o Eastern Europe
The Middle East & Africa
o The Middle East
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