The global cannabis beverages market size is set to gain impetusfrom the increasing popularity of these products owing to their possession ofseveral functional benefits, such as easy availability, ease of administration,and portion-controlled doses. Fortune Business Insights™ presentedthis information in a new study, titled, “Cannabis Beverages MarketSize, Share & COVID-19 Impact Analysis, By Type (Alcoholic andNon-alcoholic), Distribution Channel (Mass Merchandisers, Specialty Stores,Online Retail, and Others), and Regional Forecast, 2020-2027.” Thestudy further mentions that the market size stood at USD 367.4 Million in2019 and is projected to reach USD 8,521.6 Million by 2027,exhibiting a CAGR of 50.9% in the forecast period.
The decline in Sales of Cold Beverages Owing to COVID-19 MayHinder Growth
The emergence of the COVID-19 pandemic has compelled theregulatory bodies to implement social distancing, sanitization, and stringentlockdown measures for preventing transmission. This is further resulting in adecline in the trend of eating out. Hence, the demand for cold beverages isreducing worldwide. We are delivering accurate reports to help you betterunderstand the current scenario of the market.
This Report Answers the Following Questions:
- Which segment is set to lead the market and why?
- How will the market be affected amid the COVID-19 pandemic?
- How many opportunities and challenges is the market likely to come across?
- What strategies are the key players adopting to strengthen their positions?
Drivers & Restraints
Rapid Shift of Consumers towards Chemical-free & Natural Trendsto Aid Growth
The consumption of cannabis nowadays is not limited to bongs,pipes, and joints. People have a wide range of choices, including infusedproducts and concentrates. The global beverages industry is undergoing asignificant transformation with the additives and ingredients. Consumers basedin the developed countries, especially Europe and North America arepersistently striving to shape this sector. To do so, they are rapidlyinclining towards several trends, such as recognizable and herbal formulations,chemical-free, and all-natural cannabis beverages.
However, the governments of various countries are implementingstringent regulations on the distribution & manufacturing of suchtetrahydrocannabinol (THC) products. This factor is likely to hamper thecannabis beverages market growth in the near future.
Online Retail Segment to Dominate Stoked by Ability to OfferConvenience & Privacy
Based on distribution channel, the online retail segment is set toremain at the forefront by generating the largest cannabis beverages marketshare in the coming years. E-commerce platforms enable consumers to purchasethese type of beverages by providing autonomy, privacy, and convenienceregarding the choice of the products. At the same time, specialty stores wouldshowcase greater sales if they display novel products online.
Presence of Flourishing Functional Beverage Industry to FavorGrowth in North America
Geographically, North America earned USD 335.1 million in terms ofrevenue in 2019 and is expected to remain dominant throughout the forthcomingyears. This growth is attributable to the major contribution of the U.S. as ithouses a well-established functional beverage industry. Since the passing ofthe 2018 U. S. Farm Bill, the demand for hemp-cannabidiol (hCBD) has surgedrapidly. On the other hand, Latin America, Oceania, and Asia would exhibit slowgrowth because of the ban of cannabis beverages in these regions.
Key Players Focus on New Product Development to Gain CompetitiveEdge
The global market is regulated by certain regulatory bodiesworldwide. The market possesses a competitive and dynamic structure. Keycompanies are focusing on the investment strategy to produce raw material forthe development of state-of-the-art cannabis beverages. Some of the others areintroducing novel products in the market.
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