We have seen several major players enter the marijuana drink market in the recent past as more products are launched, despite the segment being in its infancy. While the focus in the past had been THC-infused drinks, we have seen interest in the wellness benefits linked to CBD growing as well.
Cannabis drinks are popular with consumers for various reasons, including fewer health concerns, discreetness, ease of consumption and less stigma when compared to other marijuana consumption methods such as smoking. These drinks also have faster onset of effects as the cannabinoids are quickly absorbed into an individual’s bloodstream under the tongue and through the mouth and the stomach. Marijuana beverages also come in different doses of CBD and THC, with most having both cannabinoids in them.
Additionally, these drinks are meeting the demands of the growing wellness market as consumers look for alternative edibles that are low in calories, sugar and alcohol.
What market share do these infused beverages occupy?
A Headset report comparing sales in the overall drinks market shows that in the United States, there’s consistent growth for marijuana drinks. In January of this year, cannabis drinks held about 1% share of the beverage market. This growth is more pronounced in the Canadian market because of legalization, with figures showing that marijuana drinks occupied about 2% of the overall beverage market at the start of this year.
The report also offered insight into the performance of different product segments in the marijuana drinks market, showing that in Canada, carbonated beverages occupied about 50% of the market share while marijuana-infused water occupied 20% of the market share.
In America, fruit drinks, lemonade and iced tea make up about 21%; carbonated drinks occupy about 25% of the market share; and syrups, elixirs, mixes and drops make up about 29% of the market share.
Where is the market going?
Some of the notable players in the marijuana beverages industry include Select, PTS, Levia, Cann and Keef, among others. These companies, which target different market segments, all have the ability to secure production and distribution partnerships.
The industry’s range means that there’s a lot of room for growth and for other companies to enter the market. The industry is expected to continue growing at a considerable rate, especially with increased access from legalization and rising demand from wellness trends.
However, before it can comfortably compete with the alcohol industry, the industry will have to overcome a few barriers. Despite this, we can expect to see more variety and innovation in marijuana-based beverages as time goes by, which will cement its share in the overall beverage market.
As the different product segments grow and reach maturity, companies such as Advanced Container Technologies Inc. (OTC: ACTX), which makes products targeting indoor growers, are likely to also see accelerating demand for their products.
NOTE TO INVESTORS: The latest news and updates relating to Advanced Container Technologies Inc. (OTC: ACTX) are available in the company’s newsroom at https://cnw.fm/ACTX
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