GVR Report cover Cannabis Beverages Market Size, Share & Trends Report

Cannabis Beverages Market Size, Share & Trends Analysis Report By Type (Alcoholic, Non-Alcoholic), By Component (Cannabidiol (CBD), Tetrahydrocannabinol (THC)), And Segment Forecasts, 2019 - 2025

  • Report ID: GVR-4-68038-166-5
  • Number of Pages: 80
  • Format: Electronic (PDF)

Report Overview

The global cannabis beverages market size was valued at USD 901.8 million in 2018 and is expected to expand at a CAGR of 17.8% from 2019 to 2025. Rising demand for wellness drinks is anticipated to drive the growth. Moreover, the low sugar content of the product and the presence of an appropriate quantity of cannabis for consumption are the factors projected to fuel the product demand. The legalization of marijuana usage for medical and recreational purposes in many countries is expected to drive the production as well as demand for cannabis-infused beverages.

Canada cannabis beverages market size

The increasing use of cannabis for the treatment of neurological disorders, cancer, and pain control is anticipated to drive the demand for cannabis drinks. The diverse application of cannabis is resulting in significant opportunities for market growth. Growing consumer interest in cannabis edibles is also expected to support growth. Cannabis consumers are shifting their focus from smoking cannabis to alternative ways, such as beverages, tinctures, and chocolates, and other edibles. Consumers are inclined to consuming concentrated and cannabis-infused products, which in turn, is expected to support the market growth. Cannabis beverages are expected to replace other marijuana-infused consumables, such as chocolates, cookies, brownies, and confectionaries like gummies and candies that are considered to be unhealthy. This factor is expected to boost the demand for cannabis drinks over the forecasted period.

The sale of cannabis beverages via off-trade channels, such as hotels, cafes, restaurants, clubs, and lounges is expected to drive the growth of the market. Declining sales of alcohol and soft drinks across the globe are representing changing consumer preference when it comes to beverage consumption. Alcohol companies are shifting their focus to marijuana to capture greater market share in the form of investments in R&D activities and new product launches. 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, the third-largest beer manufacturer in the U.S., entered into a partnership with Canopy Growth - the world’s largest marijuana grower, to develop cannabis-infused beverages.

The marijuana beverages market is driven by new product launches and increasing sales of cannabis drinks from brewing companies. The demand is majorly influenced by millennials. As per a 2017 Yahoo News poll, the majority of the 55 million recreational marijuana users in the U.S. were millennials. Most millennials consume marijuana socially and only 25% of them consume it alone. A 10-year study by researchers at the 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%.

Component Insights

By component, the market is segmented into Cannabidiol (CBD) and Tetrahydrocannabinol (THC). The demand for THC infused cannabis beverages is majorly driven by rising product demand from adult consumers for recreational purposes. Rising demand for the therapeutic effects of the component along with the euphoria it provides is expected to bode well for the growth of the segment in the forthcoming years.

CBD infused cannabis drinks registered the fastest growth in 2018. Also, the demand is expected to witness a surge over the forecasted period owing to the non-psychoactive properties of CBD. The lack of psychoactive effects in CBD drinks is widening its scope for the usage of the drinks for medical purposes. Many consumers are considering CBD drinks as wellness and anti-inflammatory products, such as kombucha - a probiotic drink. This drink can potentially be used for treating chronic pain, anxiety, substance use disorders, and central nervous system diseases. These factors are expected to boost the adoption of the product, resulting in the growth of the segment.

Type Insights

By Type, the cannabis beverages market is segmented into alcoholic and non-alcoholic drinks. The demand for alcoholic cannabis-infused beverages is expected to witness strong growth over the forecasted period, driven by increasing participation of alcohol brewing companies infusing beers with THC and CBD. The demand is majorly driven by those who consume both alcohol and cannabis. High preference for beer and spirits among cannabis consumers is expected to further fuel the growth of the segment in the forthcoming years.

Global cannabis beverages market share

Non-alcoholic cannabis beverages are estimated to be the largest and fastest-growing segment in 2018. The demand for non-alcoholic beverages is increasing owing to the increasing demand for wellness drinks among consumers. Newcomers who are willing to try cannabis-infused beverages are boosting the demand for non-alcoholic cannabis beverages. Consumers looking for healthy drinks are more inclined toward the consumption of non-alcoholic cannabis-infused drinks such as teas, drops, elixirs, water, carbonated beverages, energy drinks, lemonade, and fruit drinks. The demand for non-alcoholic drinks is majorly driven by female millennials. Manufacturers are targeting the growing female consumer base with calorie-free drinks over brownies and cookies. Also, alcohol manufacturing giants are heavily investing in the development of non-alcoholic beverages. For instance, Gatineau, Quebec-based Hexo entered into a joint venture with Molson Coors in August 2017 and launched the Truss brand to develop non-alcoholic cannabis beverages for the Canadian market.

Regional Insights

North America is estimated to be the fastest and largest market for cannabis beverages. The legalization of cannabis for medical and recreational purposes is a major factor driving growth. In 2018, Canada legalized the use of marijuana for recreational and medical purposes. As per the National Conference of State Legislatures, a total of 33 U.S. states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands approve publicly available medical cannabis programs resulting in the increased launch of new products in the region. Also, 13 U.S. states 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 also estimated to witness significant growth over the forecasted period owing to the rising consumers in the region. As per the Cannabis Trade Association, the number of CBD users in the 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 launched U.K.’s first CBD Session IPA beer brewed with Cannabis Sativa extract. The demand is also strong in the Netherlands owing to the presence of cafes and restaurants dedicated to marijuana consumption. The growth of cannabis tourism in the country is expected to further boost the demand in the country. Countries, such as Australia and Uruguay, are also anticipated to witness a significant rise in product demand, owing to the legalization of marijuana for medical and recreational purposes.

Key Companies & Market Share Insights

Key market players are New Age Beverages Corporation; The Alkaline Water Company; Phivida Holdings Inc.; Koios Beverage Corporation; VCC Brand; Dixie Brands Inc.; Keef Brand; Hexo Corp; Aphria; and Canopy Growth. The market is highly fragmented in nature as a large number of manufacturers are present and actively engaged in product launches and mergers and acquisitions to boost their market share. For instance, in 2017, Constellation Brands, the third-largest beer manufacturer in the U.S., entered into a partnership with Canopy Growth - the world’s largest marijuana grower, to develop cannabis-infused beverages.

Also, in 2019, New Age Beverages Corporation signed as an agreement with Dock light, a division of Privateer Holdings for a 50-50 profit-sharing partnership to sell marijuana-infused products under the Marley Natural brand. In 2019, The Alkaline Water Company acquired AQUAhydrate to expand their retail distribution across North America with retailers including Walmart, Target, Safeway, Rite Aid, GNC Meijer, QT, and Albertsons, along with celebrity investors continuing to serve as brand ambassadors.

Cannabis Beverages Market Report Scope

Report Attribute


Market size value in 2020

USD 1.15 billion

Revenue forecast in 2025

USD 2.84 billion

Growth Rate

CAGR of 17.8% from 2019 to 2025

Base year for estimation


Historical data

2015 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD million/billion and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Type, component, region

Regional scope

North America; Europe; Rest of the World

Country scope

U.S.; Canada; Germany; U.K.; Netherlands

Key companies profiled

The Alkaline Water Company; Phivida Holdings Inc.; Koios Beverage Corporation; VCC Brand; Dixie Brands Inc.; Keef Brand; Hexo Corp; Aphria; Canopy Growth

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country; regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global cannabis beverages market report on the basis of type, component, and region:

  • Type Outlook (Revenue, USD Million, 2015 - 2025)

    • Alcoholic

    • Non-Alcoholic

  • Component Outlook (Revenue, USD Million, 2015 - 2025)

    • Cannabidiol (CBD)

    • Tetrahydrocannabinol (THC)

  • Regional Outlook (Revenue, USD Million, 2015 - 2025)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • The U.K.

      • Netherlands

    • Rest of the World (RoW)

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