According to a new report published by Allied Market Research titled, "Cannabis food and beverage Market by Product Type, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global cannabis food and beverage market size was valued at $427.0 million in 2018, and is expected to reach $2,632.0 million by 2026, registering a CAGR of 26.6% from 2019 to 2026. North America dominated the market in 2018, accounting for around 45% of the total cannabis food and beverage market share.
The cannabis food and beverage market hold a substantial scope for the market growth. The market is currently in its growth stage; however, its contribution to the global market is expected to increase significantly during the cannabis food and beverage market forecast period. Rise in legalization of cannabis in food and beverages by many countries has enforced the market to produce innovative products such as flavored waters, wines, butter, and other bakery foods. Growth of the global population and rise in per capita income boost the market growth, thus increasing the demand of cannabis food and beverages.
The legalization of cannabis in developed economies , such as U.S., and Canada, and Australia has increased the demand for cannabis infused beverages to their food. The increase in population coupled with per capita income has increased the demand for cannabis infused bakery items, further boosting the production of cannabis. The per capita income measures the average income earned per person in a given area (city, region, and country) in a specified year. It is used to measure a country's standard of living by dividing the area's total income by its total population. In emerging countries, per capita income is more as compared to developed countries and hence, the consumption of cannabis beverages and food is eventually higher.
The cannabis food and beverage market is segmented on the basis of product type, distribution channel and region. By product type, it is categorized into bakery products, chocolate, cereal bars, candy, beverages, ice cream, and others. The bakery products segment was valued at $89.37 million in 2018 and is expected to grow with a CAGR of 27.5% (2019-2026) to reach $582.00 million by 2026. The cereal bars segment is expected to be the fastest growing segment with a CAGR of 28.5% during the forecast period.
By distribution channel type, it is categorized into mass merchandisers, specialty store, online stores, and others. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, Switzerland, the Netherlands, and Rest of Europe), Asia-Pacific (Australia, and New Zealand), and LAMEA (Uruguay, Colombia, South Africa, and Rest of LAMEA). Countries such as Australia, the U.S., and the UK, spend the highest on cannabis food products. In addition, factors such as product availability, socio-economic status, per capita expenditure, and consumer purchasing power, are responsible for the growth of the cannabis food and beverage market in these regions.
Key Findings of the Study
- The beverages segment is expected to grow at a CAGR of 28.3% during the forecast period.
- Asia-Pacific is anticipated to dominate the cannabis food and beverage market growth, registering a CAGR of 31.4%.
- North America is projected to contribute the highest market share during the forecast period, with around 40% market share in 2026, and CAGR of 26.0%.
- The online sales segment is anticipated to dominate the global cannabis food and beverage market, with a CAGR of 29.1% during the forecast period.
- The mass merchandisers segment is estimated to grow at a CAGR of 25.6% during the forecast period.
The global market is fragmented with the presence of several market participants across various regions. The strong presence of private label brands is also giving tough competition to global players. The key players operating in global cannabis food and beverage market industry include 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.