While the beverage industry forecasts its expectations for the new year, one category that will see significant growth, according to industry insiders, is the CBD beverage industry.
In fact, the market for CBD products is projected to grow into a $20 billion market by 2024—and the growth of that is expected to largely come from beverages and edibles, according to data from BDS Analytics and ArcView Market Research.
Cannabidiol, or CBD, is one of the main ingredients in cannabis, and market research shows consumers are shifting their preference from soft drinks to wellness drinks leading to the increasing sale of cannabis beverages.
Low-sugar content in drinks is the major driving factor for the growth of the market. Research further indicates consumers may prefer these beverages as an alternative to cannabis smoking and consumption of marijuana-infused chocolates, cookies, brownies and confectionaries such as gummies and candies.
A report from Grand View Research said the global cannabis beverages market size is expected to reach $2.8 billion by 2025, expanding at a CAGR of 17.8% during the forecast period. Grand View Research also said “strong demand for cannabis beverages from millennials is also anticipated to drive the market growth.”
Beer labels, such as Pabst and Heineken were quick to develop cannabis-infused beverages. But it is not just alcohol manufacturers investing in the growing trend of CBD beverages. And the market is not just for the younger generation to consume. Luxury brands have also entered the CBD beverage market—starting with your cup of joe.
Tonino Lamborghini, a luxury goods brand, signed a licensing agreement last November with Flora Growth Corp.— operator of one of the largest outdoor cannabis cultivation facilities—to begin manufacturing/distributing CBD coffees.
“The cannabis market represents a very interesting niche, and we intend to offer a different luxury experience,” explains Ferruccio Lamborghini, CEO for Tonino Lamborghini, proving the CBD beverage market trend for 2022 will go beyond beer, wine and spirit sales.
“Coffee is one of the most popular beverage segments globally and infusing it with cannabinoids is a strong differentiator for the product line, beyond its association with the Tonino Lamborghini brand, especially with the increase in demand for CBD-based products,” Flora Growth Corp said in a statement announcing the agreement with Tonino Lamborghini.
Luis Merchan, president and CEO of Flora Growth Corp., said in an email statement, “We expect CBD use across multiple consumer categories to increase rapidly internationally, particularly in beauty, food and wellness.”
Despite the early stages of the industry, Merchan is optimistic. “The CBD industry is still in its early growth phase globally, and we are excited to introduce a wide range of novel products including Tonino Lamborghini beverages, KASA juices, chocolates and snacks as well as a healthy portfolio of soon-to-be-announced CBD products for both the U.S. and international markets.”