A new report from Research and Markets suggests that the cannabis food and beverage market is projected to expand at a CAGR of just more than 15% over the next five years.
"The legalization of medical or recreational cannabis, coupled with the availability of various flavors in wellness drinks, are key factors propelling the cannabis food and beverage market's growth," the Dublin-based company said in the report, The Global Cannabis Food and Beverage Market 2021-2026.
The report finds that as legalization has brought cannabis into the mainstream market, high-end products are using CBD compounds across North America and Europe. Some beverage producers are also including CBD in their products to offer users "a sudden energy boost, increased focus and more alertness."
However, Research and Markets also notes that the "decrease in the supply-demand ratio of cannabis and adverse health effects related to CBD products obstruct the overall growth of the cannabis food and beverage market."
Globally, North America holds the largest market for cannabis-containing foods and beverages, according to the report. The U.S. cannabis industry is growing at a rapid pace and generating billions of dollars each year, with CBD product sales estimated to reach more than $20 billion across the country.
Growing demand is being driven in part by baby boomers, the report stated, and cannabis use has been mainly for recreational purposes in states where such use has been legalized.
As a growing number of companies explore the idea of infusing CBD into alcohol beverages, drinks are an increasingly popular vehicle for consumption. Overall, the rising demand for cannabis products for recreational purposes is supplementing the growth of the cannabis food and beverage market across the U.S., according to the report.
The report also explores the companies leading the cannabis food and beverage market. Among these are NewAge Inc. (formerly New Age Beverages Corp.), a Denver-based beverages and lifestyle company that produces a range of organic liquid dietary supplements and other products. The company's products are marketed via traditional retail as well as through e-commerce and direct-to-consumer sales and medical channels. NewAge's products include cannabis-infused beverages, kombucha, functional waters, energy drinks and more.
Additional market players mentioned in the report include Alkaline88 LLC, Koios Beverage Corp., The Supreme Cannabis Co., General Cannabis Corp., Phivida Holdings, Dixie Brands, Coalition Brewing, Lagunitas Brewing Co. and Dutch Windmill Spirits BV.