A report by Grand View Research suggests that the majority of companies in the sector are based in Canada owing to the legalisation of cannabis for medical and recreational purpose in the country.
By type, non-alcoholic drinks represented the largest and fastest growing segment in 2018, while beverages infused with the CBC cannabinoid are estimated to grow fastest over the forecast period.
In Europe, the Netherlands hold the largest market share owing to the presence of cafes and restaurants dedicated to cannabis consumption and cannabis tourism.
Key players operating in the global market include 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.
Rising popularity of wellness drinks is also expected to support the demand over the forecast period.
The legalisation of cannabis for medical and recreational purpose has had a strong impact on the sales of alcoholic drinks, the report explains.
As a result, many alcohol manufacturers are investing in the growing trend of marijuana-infused drinks.
For example, Lagunitas, Heineken’s fast-growing California beer label, has 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 US entered into a partnership with Canopy Growth to develop cannabis-infused beverages.
The report states: “Consumers are shifting their preference from soft drinks to wellness drinks leading into increasing sale of cannabis beverages. Low sugar content in drinks is the major driving factor for the growth of the market.
“Also, consumers prefer these beverages as an alternative to cannabis smoking and consumption of marijuana-infused chocolates, cookies, brownies and confectionaries like gummies and candies.
“Off trade sales channels, such as hotels, cafes, restaurants, clubs, and lounges are expected to boost the popularity of the product among consumers.”
Strong demand for cannabis beverages from millennials is also anticipated to drive the market growth, the report adds.