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Legalizing of recreational or medical cannabis, increased demand for wellness drinks, and vigorous technological and information exchange for legal marijuana is boosting the market for cannabis-based beverages.
NEW YORK, May 27, 2019 (GLOBE NEWSWIRE) — The Global Cannabis based beverages Market is forecasted to reach USD 5.04 Billion by 2026, according to a new report by Reports and Data.
The market expansion of cannabis-based beverages has occurred due to a combination of various factors. One of the fundamental element in this context has been the initiative of legalizing the use of cannabis for medical usage in 30 countries. Apart from that, certain nations are taking action of legalizing the use of marijuana for recreational purpose. Such an initiative of legalizing the use of cannabis is acting as a significant driver for this market.
Apart from the mentioned driving factor, there has been an increase in use of cannabis in treating various health conditions like neurological disorders, psychiatric disorders, and cancer, and pain control. It is also observable that, consumers are having increased demand for wellness drinks. Such diverse applicability of cannabis results in having a significant positive impact on the demand for cannabis-based beverages, making a further contribution to its market growth. Major investors and key players of this industry are considering this area to be a lucrative market. As a result of this, they are increasing their investments in this market, which is also contributing to its growth.
In regards to region, North America is seen to be dominating the market because of its quick acceptance of this form of beverage, increased investment in healthcare and wellness sector and presence of consumers in this region who wants to experience smoke-free cannabis. A large amount of investment in R&D and mergers are also promoting the growth of this market in this region.
Further key findings from the report suggest
- Other than legalizing the use of cannabis, its applicability in treating different health conditions, rise in private and public investment for R&D to promote a safer form of consuming marijuana is also acting as a driving factor for the market. The cannabis-based beverages market held a market share of USD 1.57 Billion in the year 2018 and is forecasted to grow at a rate of 15.4%.
- The fact that this form of beverages contains clean ingredients, low sugar content, and the measured quantity of cannabis is also promoting the growth of the market.
- In context to product type, the largest market share is held by the non-alcoholic segment that occupied 57% of the market share in 2018, and it is forecasted to witness a growth rate of 15.6% during the forecast period.
In the end user segment, Hotels, Restaurants and Café (HoReCa), holds the largest market share, and it is forecasted to maintain its market dominance. It is forecasted to hold 57% of the market share by 2026 with a
- CAGR of 15.1%. The reason for its market dominance is different regulations that regulate the consumption of cannabis beverages, which makes it difficult to be used in the household segment. Due to this, HoReCa gets an advantage in the market.
- In context to the end user segment, the highest growth rate is forecasted to be witnessed by the household segment. Its high growth rate is because of the legalization of cannabis use for medical purpose. An initiative of legalizing cannabis for recreational use is forecasted to have a positive impact on this segment.
- In the distribution channel segment, Business-to-consumers (B2C) holds the larger market segment of 53% in the year 2018. It is forecasted to witness a growth rate of 15.1%.
In the distribution channel, Business-to-business (B2B) is forecasted to witness the higher growth rate of 15.7% during the forecast period. It is because of the increased rate of investment in this industry that resulted in boosting the growth rate of this segment.
- In the context of application, recreation holds the larger market segment, which is forecasted to hold 72% of the market share by 2026 with a CAGR of 15.2%. Factors like high availability of cannabis-based beverages for recreational purpose, an initiative of legalizing recreational use of marijuana resulted in its dominance in the market.
- In regards to the component segment, Cannabidiol (CBD) dominates the market, which is forecasted to hold 56% of the market share by 2026. Increased preference for non-alcoholic cannabis beverages, in which Cannabidiol (CBD) is an integral element is what contributes to its market dominance.
- North America dominates the market that is forecasted to hold 31% of the market by 2026 with a growth rate of 16.4%. Factors like new consumers who want to experience smoke-free marijuana, an increasing number of companies investing in the healthcare sector and wellness sector in this region are promoting the market in this region.
- Key participants include New Age Beverages Corporation, Coalition brewing, Beverages Trade Network, Lagunitas, General Cannabis Corporation, The Supreme Cannabis Company, Koios Beverage Corporation, The Alkaline Water Company, SK Rodnik, Cannabis Energy Drink, and Dutch Windmill Spirits.
For the purpose of this report, Reports and Data have segmented the global cannabis-based beverages Market based on Product type, End-user, Distribution channel, Application, Component, and Region:
Product Type Outlook (Revenue, USD Billion; 2016-2026)
- Cannabis-Infused Spirits
- Cannabis-Infused Beers
- Cannabis-Infused Wines
- Marijuana Elixirs
- Marijuana Tea
- Cannabis Soda
- Cannabis Coffee and Cold Brew
- Cannabis infused vitamin based energy water
- End-user Outlook (Revenue, USD Billion; 2016-2026)