The cannabis food and beverage market size was valued at $427.0 million in 2018 and is estimated to reach $2,632.0 million by 2026, registering a CAGR of 26.6 % from 2019 to 2026.
The cannabis plant is sometimes also known as hemp, but this term is used primarily to refer to only the varieties of Cannabis that are cultivated for non-drug use. It has been used since ages to make hemp seeds, oil, hemp fiber, and hemp leaves for use as vegetables and juices, or even in medicinal purposes as a recreational drug. There are more than 100 different types of cannabinoids among which tetrahydrocannabinol (THC) and cannabidiol (CBD) are the most popular.
Cannabis beverages have been very popular in the mature and emerging markets. This can be attributed to rise in number of people choosing cannabis-infused products. Furthermore, increase in disposable income has aided the cannabis food and beverage market growth. Moreover, introduction of additional innovative beverages that are made by infusing cannabis are some other factors that further drive the growth of the market. However, fluctuating prices of raw materials act as a restraint for this market. On the contrary, growth in demand for cannabis food and beverage by high income groups and introduction of new flavor & variety of cannabis flavored water are anticipated to provide growth opportunities for the cannabis food and beverage market.
Cannabis food and beverage market has been segmented based on product type, distribution channel , and region. By product type, the market is divided into bakery products, chocolate, cereal bars, candy, beverages, ice cream, and others. By distribution channel, it is categorized into mass merchandisers, specialty store, online stores, and others. By region, the cannabis food and beverage market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Product Type
Cereal bars segment would exhibit the highest CAGR of 28.5% during 2019-2026.
Based on the cannabis food and beverage market analysis by product type, the bakery products segment generated the highest revenue in 2018 and is expected to remain dominant throughout the forecast period. This can be attributed to increasing demand for bakery food infused by cannabis such as THC and CBD in countries such as the U.S. and Canada. Moreover, rise in penetration of cannabis in beverages industry and spirits is expected to increase the demand for cannabis in the countries such as Mexico, and Brazil. However, the cereal bars segment is expected to grow at the highest CAGR throughout the cannabis food and beverage market forecast period owing to increase in demand by athletes who are preferring cannabis food products for relaxation after workouts.
By Distribution Channel
Online segment would exhibit the highest CAGR of 29.1% during 2019-2026.
Based on the distribution channel, the specialty store segment was the leading supply chain point with highest cannabis food and beverage market share in 2018. This can be attributed to increasing adoption of cannabis products from specialty stores chains in both the mature and emerging markets. Moreover, the one stop solution provided by hypermarkets and supermarkets where consumers can get all types of cannabis food and beverage market makes it a very popular option for shopping for consumers. However, the online sales segment is expected to witness the fastest growth through the forecast period owing to rapid penetration of cannabis food items on the E-commerce platforms. Availability of cannabis drinks on leading online platforms is also playing a crucial role in the cannabis food and beverage market.
Asia-Pacific would exhibit the highest CAGR of 31.4% during 2019-2026.
By region, North America was the most prominent regional cannabis food and beverage market in 2018. This can be attributed to lifting of ban on addition of cannabis in the production of food and beverages in the U.S. Around 33 states in the U.S. have legalized addition of cannabis infusion in food and beverages. This factor is expected to boost the growth of the cannabis food and beverage market in North America in future. Availability of edible protein bars infused with cannabis for the athletes is also playing a crucial role in the spread of cannabis food products across the globe. Asia-Pacific is expected to witness the highest CAGR of 31.4% during the forecast period.
The players in the cannabis food and beverage industry have adopted product launch and business expansion as their key development strategies to increase profitability, and to improve their stance in the cannabis market. The key players have also relied on partnerships to stay relevant in the global market. Key players operating in the global cannabis food and beverage market are Natural Extractions, Dixie Brands Inc., New Age Beverages Corporation, Coalition brewing, Beverages Trade Network, Lagunitas, General Cannabis Corporation, The Supreme Cannabis Company, Koios Beverage Corporation, and The Alkaline Water Company.
Key benefits for stakeholders:
- The report provides a quantitative cannabis food and beverage market analysis of the current market trends, estimations, and dynamics of the market size from 2019 to 2026 to identify the prevailing cannabis food and beverage market opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis of the size and segmentation assists in determining the prevailing market opportunities.
- The major countries in each region are mapped according to their revenue contribution to the global industry.
- The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the cannabis food industry.
Cannabis Food and Beverage Market Report Highlights
By Product Type
By Distribution Channel
Key Market Players
The Supreme Cannabis Company, Inc., Lagunitas Brewing Company, GENERAL CANNABIS CORP, Dutch Windmill Spirits B.V., Coalition Brewing, Energy Drink, Dixie Brands Inc, Alkaline88, LLC., New Age Beverages Corporation, KOIOS Beverage Corp
Cannabis food and beverages market was valued at $427.0 million in 2018, and is projected to reach $2,632.0 million by 2026, growing at a CAGR of 26.6% from 2019 to 2026. North America dominated the market, occupying nearly 45% share of the total revenue in 2018. Asia-Pacific is expected to witness the highest growth rate during the forecast period, owing to increase in use of cannabis in food and beverages in Asian countries.
Legalization of cannabis in food and beverages products provides impetus for product innovation in beverages and in bakery food. The demand for cannabis infused beverages has witnessed a major boost owing to the urbanization and modern lifestyle. Expansion of commercial farmlands and growth of the manufacturing of cannabis in Asia-Pacific have increased application of cannabis in the drug sector as well as in beverages industry. Growth in the global population and rise in per capita income are two major drivers of the market. Furthermore, increase in average selling price of cannabis food in most of the countries has positively impacted the market growth.