CBD beverages have gained popularity as cannabis products were legalized by the Farm bill (Agricultural Improvement Act) in 2014. The rising awareness of health benefits of CBD products has elevated the growth of CBD beverages market globally. Cannabidiol is a non-psychoactive molecule found in cannabis, which is extracted from leaves, resin, and flowers of marijuana or hemp.
Cannabidiol is infused in the beverages which treat a variety of health conditions including antioxidant and neuroprotective protective properties. The market is expected to showcase significant growth in the forecast period due to rising adoption of natural products over pharmaceutical products. However, regulation and compliance on the use of CBD in the food and beverage industry have the potential to hampers the growth of the market.
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Global CBD Beverage Market Regional Overview
The CBD beverage market is expected to grow tremendously in North America with the legalization of CBD-infused products in many states. North American states, including Colorado, Utah, Iowa, Texas, and California, have been approved to grow and market CBD-infused products.
Many major manufacturers such as Alkaline88, The Alkaline Water Company and Youngevity International Inc. dominate the CBD-infused beverages. The European market has also seen growth in the CBD beverage market and is expected to grow tremendously in the region as the legalization of CBD products becomes mainstream.
Asia Pacific is considered the largest market for CBD beverages and many manufacturers are looking for opportunities to expand their markets in this region. Latin America, the Middle East and Africa have experienced rapid growth in the legalization and marketing of cannabis products and there is ample opportunity for this market to grow in these regions.
In addition to providing a quantitative analysis of CBD beverage demand, the study also provides an independent analysis of key factors driving the market. From macroeconomic factors to subtle microeconomic factors, this study analyzes the finest details that are likely to affect the CBD beverage industry during the evaluation period.
The study also provides readers with in-depth insights into the key challenges for CBD beverage companies during the evaluation period. The main challenges facing OEMs as suppliers are also discussed in detail in this study.
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Stringent Regulations on CBD Infused Products
CBD is derived from marijuana and hemp which is incorporated with many laws and regulations. The import and growing of marijuana and hemp has been legalised by very few states, however, FDA has not approved the use of CBD in foods and Beverages, which could affect the growth of CBD beverage market globally. The rules and regulation on the use of CBD are different in different regions. Thus, the market is remains constrained to only states which have made CBD beverages legal.
The global CBD Beverages market can be segmented on the basis of CBD Type as:
- Marijuana-derived
- Hemp-derived
- Synthetic
The global CBD Beverages market can be segmented on the basis of End User as:
- Millennial
- Gen Z
- Baby Boomers
The global CBD Beverages market can be segmented on the basis of grade as:
- Pharmaceutical Grade
- Food Grade
The global CBD Beverages market can be segmented on the basis of Distribution Channel as:
- Storefront Dispensaries
- Convenience Store
- Online
- Others
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