Cannabis Beverages Market USD 28.6 Bn by 2033 at 32.6% CAGR

Overview

New York, NY – February 21, 2025 – The Cannabis Beverages Market is rapidly expanding, projected to grow from USD 1.7 billion in 2023 to USD 28.6 billion by 2033, driven by a CAGR of 32.6%. This market is gaining traction as the legalization of cannabis for medical and recreational use increases across numerous regions.

Cannabis beverages, which include both THC and CBD-infused drinks, are becoming a preferred alternative to traditional consumption methods due to their novelty and social acceptance. Innovations in the market, such as nanoemulsion technology for better cannabinoid bioavailability, are attracting investments and leading to a variety of products including non-alcoholic drinks like coffee and tea, which hold a significant market share.

North America currently dominates the market, supported by a robust retail network and favorable regulations, which are mirrored by emerging markets in Europe and Asia. The non-alcoholic segment is particularly appealing to health-conscious consumers, seeking relaxation and wellness benefits without psychoactive effects. As e-commerce grows, its role in distribution is crucial, reflecting changing consumer behaviors toward online purchases.

Key Takeaways

• Cannabis Beverages Market size is expected to be worth around USD 28.6 Bn by 2033, from USD 1.7 Bn in 2023, growing at a CAGR of 32.6%.
• The non-alcoholic segment held a dominant position in the cannabis beverages market, capturing more than a 67.4% share.
• Cannabidiol (CBD) held a dominant market position in the cannabis beverages sector, capturing more than a 68.1% share.
• The household segment held a dominant position in the cannabis beverages market, capturing more than a 58.1% share.
• Mass Merchandisers held a dominant market position in the cannabis beverages market, capturing more than a 38.1% share.
• North America dominated the cannabis beverages market, holding a significant 56.9% share and valuing approximately USD 0.9 billion.

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Report Scope

Experts Review

Experts highlight government incentives and technological innovations as critical drivers of growth in the Cannabis Beverages Market. Legalization in key regions like North America, complemented by regulatory support, is encouraging substantial investments in product development. Companies are focusing on technologies such as nanoemulsions and water-soluble cannabinoids to enhance consumer experience. Although these offer promising investment opportunities, risks include navigating diverse and complex regulatory environments, which remain inconsistent globally.

Consumer awareness about health benefits, particularly of CBD, is rising, supporting market uptake. However, technological impacts raise concerns about product safety and potency consistency. Experts stress that understanding consumer preferences and ensuring strict adherence to safety regulations are pivotal.

The regulatory environment is evolving; as more regions legalize cannabis, companies face opportunities for market expansion but must remain vigilant of policy shifts and compliance requirements. Investment opportunities abound, particularly for companies innovating in product variety and distribution methods, but they must be prepared for the risks of market volatility and regulatory changes.

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Key Market Segments

By Type

• In 2023, the Non-Alcoholic segment led the cannabis beverages market, securing over 67.4% of the share. This category encompasses products like cannabis-infused coffee, tea, and juice, attracting a wide audience seeking wellness benefits without THC’s psychoactive effects. The surge in popularity is tied to growing health and wellness trends, with consumers opting for these drinks for potential advantages like stress relief and better sleep.

By Component

• In 2023, Cannabidiol (CBD) dominated the cannabis beverages sector, claiming over 68.1% of the market. Its non-psychoactive nature and touted health perks have made it a top choice for wellness-focused consumers avoiding THC’s intoxicating effects. CBD-infused drinks, such as water, tea, and energy beverages, are prized for their potential to ease stress, lower anxiety, and promote general well-being. Rising legalization and reduced stigma around cannabis products have fueled their popularity, prompting both established beverage firms and new players to expand in this space.

By End-Use

• In 2023, the Household segment topped the cannabis beverages market, accounting for over 58.1% of the share. This dominance reflects the rising personal use of cannabis, particularly in areas with expanding legalization. Consumers increasingly choose cannabis-infused drinks for their discretion and ease, using them for medicinal relief, relaxation, or wellness. Products like CBD teas, THC sodas, and non-alcoholic cannabis beers have become household staples, appealing to those seeking alternatives to alcohol or traditional medications.

By Distribution Channel

• In 2023, Mass Merchandisers led the cannabis beverages market, holding over 38.1% of the share. Their dominance stems from the vast reach and convenience of large retail chains, which are increasingly stocking cannabis-infused drinks as legalization advances. This setup allows consumers to buy these products during routine shopping, boosting visibility and mainstream uptake.

Regional Analysis

• In 2023, North America led the cannabis beverages market, commanding a substantial 56.9% share and reaching an estimated value of USD 0.9 billion. This dominance stems from widespread cannabis legalization across numerous U.S. states and Canada, bolstered by a deeply rooted cannabis culture and cutting-edge production capabilities. The region’s consumers exhibit a clear preference for novel cannabis beverage offerings, fueled by extensive retail networks and advanced marketing approaches.
• Europe, though lagging behind North America, is seeing consistent growth in its cannabis beverages sector. Evolving regulations and a rising acceptance of cannabis for both medicinal and recreational purposes are reshaping the market. Nations like Germany, the Netherlands, and Switzerland are at the forefront, driving progress through market expansion and forward-thinking legislative changes that improve access to cannabis products.
• The Asia Pacific region is an emerging market with significant untapped potential, spurred by shifting societal views and regulatory shifts in places like Thailand and South Korea. Despite this promise, the market remains in its early stages, with restrictive laws hindering the pace of growth seen in Western regions.
• Latin America’s cannabis beverage market is steadily developing, with countries such as Uruguay and Colombia spearheading regulatory advancements. These reforms are laying the groundwork for increased research, cultivation, and consumption of cannabis-related products across the region.
• The Middle East & Africa remains the least developed segment of the global cannabis beverages market, largely due to stringent regulatory frameworks. Nevertheless, growing curiosity about cannabis’s medicinal benefits could eventually unlock new opportunities for market expansion in select countries within these regions.

Top Use Cases

• Wellness and Relaxation Cannabis beverages are becoming popular for promoting relaxation and stress relief. These drinks contain cannabinoids like CBD, which are known for their calming effects, making them a preferred choice for those seeking a non-alcoholic option to unwind without the hangover or negative side effects of traditional alcohol.
• Social and Recreational Consumption Cannabis-infused drinks are gaining popularity in social settings as an alternative to alcohol. These beverages allow consumers to enjoy a mild euphoric experience without the harshness of traditional alcoholic drinks. They’re often seen as a way to participate in social activities while maintaining focus and control.
• Health and Fitness Cannabis beverages are also being marketed as fitness recovery drinks, thanks to their anti-inflammatory properties. Athletes and fitness enthusiasts use these beverages for quicker muscle recovery and pain management, benefiting from the CBD content that helps with inflammation and joint pain.
• Sleep Aid For those struggling with insomnia or poor sleep quality, cannabis beverages containing a balance of CBD and THC are being used as a natural sleep aid. The cannabinoids help regulate sleep patterns, offering users a more restful night’s sleep without the grogginess typically associated with over-the-counter sleep medications.
• Calorie-Controlled and Sugar-Free Options With the increasing demand for healthier lifestyle choices, cannabis beverages are being created with low or no sugar. These beverages cater to health-conscious consumers who want to enjoy the benefits of cannabis without compromising their dietary goals, making them an appealing option for people watching their calorie intake.

Recent Developments

1. Aphria Inc.

• Recent Developments:
  • Aphria merged with Tilray Brands in 2021, and since then, Tilray has continued to expand its cannabis beverage portfolio.
  • In 2023, Tilray launched new cannabis-infused beverages under its “Malfy Gin & Tonic” and “Happy Tea” brands in Canada, targeting the growing demand for low-dose, social cannabis beverages.
  • Tilray invested in beverage production facilities in Canada and Europe to scale up its cannabis beverage operations.

2. ARTET, LLC

• Recent Developments:
  • ARTET, a cannabis beverage brand backed by The Artet Group, launched its premium cannabis-infused Aperitivo in 2022. The product is inspired by Italian aperitivo culture and is available in select U.S. markets.
  • In 2023, ARTET expanded its distribution to new states, including California and Illinois, leveraging partnerships with local dispensaries.

3. Aurora Cannabis Inc.

• Recent Developments:
  • Aurora Cannabis has been focusing on cost-cutting and streamlining operations, but it continues to innovate in the cannabis beverage space.
  • In 2023, Aurora launched a new line of cannabis-infused sparkling waters under its “Drift” brand, targeting health-conscious consumers.
  • Aurora has also partnered with Canadian retailers to expand the availability of its cannabis beverages.

4. BellRock Brands (Dixie Brands)

• Recent Developments:
  • BellRock Brands, the parent company of Dixie Brands, has been actively expanding its cannabis beverage portfolio.
  • In 2022, Dixie launched a new line of cannabis-infused beverages, including “Dixie Elixirs,” which are available in various flavors and THC/CBD ratios.
  • BellRock has also formed partnerships with beverage distributors to increase its market reach in the U.S.

5. CANN Social Tonics

• Recent Developments:
  • CANN Social Tonics has gained significant traction in the cannabis beverage market with its low-dose, social cannabis drinks.
  • The company has also partnered with major retailers, including Whole Foods and Erewhon, to sell its products in select U.S. states.

Conclusion

Cannabis Beverages are carving out a significant niche in the evolving consumer market, driven by trends toward health, wellness, and alternative recreational options. These products offer various benefits, from relaxation and stress relief to enhanced sleep and fitness recovery, making them attractive to a wide range of consumers. As the market continues to grow, advancements in product variety, flavor options, and low-dose formulations are likely to attract more mainstream users. With increasing awareness and evolving regulations, cannabis beverages are positioned to become a key player in both the wellness and recreational sectors.

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