The past few years have seen the cannabis industry grow from essentially nothing to a juggernaut worth billions of dollars in sales. Cannabis edibles have reigned supreme, with CBD gummies being among the most searched for foods online in 2018 thanks, in part, to their discreetness and ease of use. One of the fastest-growing industries in America, the state-legal cannabis sector is constantly in flux, and players in this controversial space are now looking to cash in on a new product that has been gaining more mainstream attention: cannabis beverages.
Forget alcohol or your daily cup of coffee — customers have been increasingly looking for alternatives to common beverages and low-potency, cannabis-infused drinks have emerged as a strong contender. Thanks to improving technology, companies in the cannabis space can now produce smooth and consistently dosed cannabis drinks, making them a viable option for customers who would like to kick back with a nice, relaxing drink that won’t leave them grappling with a hangover the next day.
According to a 2021 report by cannabis analytics firm Headset, cannabis beverage sales have remained at around 1% for the past five years. However, thanks to advancements in cannabis-infusion technology and the entry of several new brands, the cannabis drinks segment has plenty of growth potential.
Headset says that cannabis drinks sales in Canada have risen to nearly 4.5% of total cannabis sales since the start of 2020 while leading industry analyst Million Insights says the global cannabis beverages will be worth $2.8 billion by 2025, growing at a compound annual growth rate (CAGR) of 17.8%. Despite being a relatively young segment, the cannabis beverage space has seen an influx of SME craft companies and larger companies looking to cash in on the increasingly popular product. Heineken, for instance, recently launched a line of cannabis-infused, zero-carb and zero-calorie drinks under the Hi-Fi Hops brand. In addition, Canopy Growth partnered with Constellation brands while HEXO partnered with Moors Coors to create Truss Beverages.
People are looking for cleaner, safer ways to consume cannabis, especially in the wake of the coronavirus pandemic, which showed just how detrimental smoking can be and sparked a growing trend toward healthier, less-sugary drinks. A growing number of cafes, lounges and restaurants are already anticipating demand for cannabis beverages, with a 2020 survey of retail sales data in Canada revealing that cannabis-infused drinks had greater growth rates compared to edibles.
Furthermore, another 2020 study conducted for Truss found that awareness of cannabis beverages was at an all-time high at 87% and that 35% of the respondents already consumed cannabis drinks as an alternative to smoking. Only time will tell how the cannabis-infused segment fares. With cannabis beverages sector players such as BevCanna Enterprises Inc. (CSE: BEV) (OTCQB: BVNNF) (FSE: 7BC) consolidating their position in this segment, consumers have a lot to look forward to.
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