Beverage Dynamics Winter 2024 | Page 21

Liquor Stores Making Shelf Space for Cannabis and CBD Beverages

The cannabis and CBD beverage industry has grown rapidly in recent years , driven by increasing legalization , consumer interest in wellness alternatives and the desire for new ways to experience relaxation and socialization .

Grand View Research valued the global cannabis beverage market at $ 1.16 billion in 2023 and projected it to grow at a CAGR of 19.2 % from 2024 to 2030 . The North American market dominates this space due to widespread legalization , particularly in the U . S . and Canada .
In the U . S . alone , the cannabis-infused beverage market is projected to hit $ 1.4 billion by 2025 , according to BDS Analytics and Arcview Market Research , fueled by recreational legalization in multiple states and increased consumer demand for alternatives to alcohol .
“ The cannabis and hemp beverage industry is expanding at a significant pace , reflecting both consumer interest and legal developments ,” says Kelly Ravestijn , senior vice president , commerce intelligence at Advantage Unified Commerce , Advantage Solutions . She attributes this growth to product innovation , evolving consumer preferences and the strategic use of social media and direct-to-consumer ( DTC ) channels .
by KRYSTINA CANNABIS BENEFITTING OFF THE SKIBO ' ZERO PROOF ' MOVEMENT
Cannabis and CBD-infused beverages hac come a
long way in the past decade . The taste was not pleasant , the dosage was off and they weren ’ t as widely available as they are now .
As manufacturers continue to enhance cannabis beverages with improved flavor profiles , functional ingredients such as adaptogens and precise dosing , they appeal to “ health-conscious and sober-curious consumers looking for alternatives to alcohol or those simply preferring the buzz of cannabis ,” Ravestijn says .
The growing zero-proof movement has caused some health-conscious consumers to move away from alcohol beverages . “ This shift is primarily driven by younger consumers ( Gen Z and Millennials ), who perceive alcohol , even in small quantities , as unhealthy ,” says Mayra Medina , founder of Oui ’ d Marketing . “ Cannabis drinks are seen as a healthier alternative for social consumption , allowing users to still engage in social settings without the negative effects , such as hangovers .”
Many canned cocktail and beer brands have also noticed this trend , and tried to hop on the bandwagon by offering beverages with a lower-ABV content . www . beveragedynamics . com Winter 2024 • Beverage Dynamics 21