SAN FRANCISCO, Jan. 14, 2020 /PRNewswire/ -- The global cannabis beverages market size is expected to reach USD 2.8 billion by 2025, expanding at a CAGR of 17.8% during the forecast period, according to a new report by Grand View Research, Inc. The market is highly fragmented in nature, owing to the presence of the small and medium scale companies. Majority of the companies are based in Canada owing to the legalization of marijuana for medical and recreational purpose in the country. Rise in legalization of marijuana in order to eradicate the black market and to boost the tax revenue from legal sales of marijuana products is anticipated to positively influence the growth.
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Read 80 page research report with ToC on "Cannabis Beverages Market Size, Share & Trends Analysis Report By Type (Alcoholic, Non-Alcoholic), By Component (Cannabidiol (CBD), Tetrahydrocannabinol (THC)), And Segment Forecasts, 2019 - 2025'' at: https://www.grandviewresearch.com/industry-analysis/cannabis-beverages-market
Rising popularity of wellness drinks is also expected to support the demand over the forecast period. The legalization of cannabis for medical and recreational purpose has had a strong impact on the sales of alcoholic drinks. As a result, many alcohol manufacturers are investing in the growing trend of marijuana-infused drinks. For instance, Lagunitas, Heineken's fast-growing California beer label, launched Hi-Fi Hops, which is a cannabis-based beverage with zero calories or carbs and is infused with Cannabidiol (CBD) and Tetrahydrocannabinol (THC). In 2017, Constellation Brands, third largest beer manufacturer in U.S., entered into a partnership with Canopy Growth-world's largest marijuana grower to develop cannabis-infused beverages.
Consumers are shifting their preference from soft drinks to wellness drinks leading into increasing sale of cannabis beverages. Low sugar content in drinks is the major driving factor for the growth of the market. Also, consumers prefer these beverages as an alternative to cannabis smoking and consumption of marijuana-infused chocolates, cookies, brownies and confectionaries like gummies and candies. Off trade sales channels, such as hotels, cafes, restaurants, clubs, and lounges are expected to boost the popularity of the product among consumers.
Strong demand for cannabis beverages from millennials is also anticipated to drive the market growth. As per a 2017 Yahoo News poll, majority of the 55 million recreational marijuana users in U.S. were millennials. Most millennials consume marijuana socially and only 25% of them consume it alone. A 10-year study by researchers at University of Connecticut and Georgia State University completed in 2017, found that in U.S. counties where marijuana was legalized, wine and beer purchases decreased by 15%.
North America is estimated to be the fastest and largest market over the forecast period. The growth is majorly driven by the legalization of marijuana for medical and recreational purpose. As per the National Conference of State Legislatures, total 33 states, District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands have approved publicly available medical cannabis program resulting in increased launch of several cannabis drinks. Also, 13 states in U.S. allow the use of low THC and high CBD products for medical purposes, resulting in high demand for CBD infused cannabis drinks in the region.
Europe is estimated to witness strong growth over the forecast period, owing to a rise in cannabis consumers in the region. As per the Cannabis Trade Association, the number of CBD user in U.K. increased from 125,000 in 2016 to 250,000 in 2017. Also, the companies operating in the region are launching products to keep up with the growing trend of wellness drinks. For Instance, Manchester-based CBD Ultra and Cloud 9 Brewing have launched U.K.'s first CBD Session IPA beer brewed with Cannabis Sativa extract.
Grand View Research has segmented the global cannabis beverages market based on type, component, and region:
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Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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