NEW YORK, Aug. 7, 2019 /PRNewswire/
As the cannabis industry continues to develop, savvy consumers and businesses are creating innovative new ways to ingest cannabis. Due to widespread stereotypes, many imagine cannabis users relying on hastily rolled joints. However, as the legal industry continues to accelerate, new products are constantly emerging. For instance, in legal markets such as Colorado or California, extracts and concentrates have become increasingly popular because of their potency and immediate effects. Specifically, Colorado has witnessed its extract and concentrate sales eclipse its flower sales in recent years. And while extracts and concentrates are widely popular, other vendors have incorporated cannabis into edibles and beverages. In particular, edibles are more abundant in regions where recreational cannabis is legal. On the other hand, the cannabis-infused beverage industry is experiencing significant strength because of large beverage corporations entering into the marketspace. Notably, big alcohol has set its sights on the cannabis market because of its declining primary revenue drivers. As a result, many companies are adding cannabis-infused beverages to their product lines in order to combat lower sales numbers that are a result of the declining alcohol consumption levels. However, to note, most companies are predominantly only adding CBD, or cannabidiol, to their beverages because of regulatory restrictions on THC.
Moreover, companies are marketing CBD-infused beverages as health and wellness products rather than recreational or relaxation products. And while the infused beverage market is already experiencing a surge in momentum in legal regions, it’s expansion into new territories is expected to spur its growth. According to data compiled by Fior Markets, the global cannabis beverages market is expected to reach USD 4.56 Billion by 2025 while exhibiting a CAGR of 16.8% during the forecast period from 2018 to 2025. BevCanna Enterprises Inc. (CSE: BEV), Anheuser-Busch InBev SA/NV (NYSE: BUD), Molson Coors Brewing Company (NYSE: TAP) (TSX: TPX), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), Harvest Health & Recreation Inc. (OTC: HRVSF) (CSE: HARV)
The therapeutic benefits associated with CBD-infused beverages has already attracted many consumers. According to data by High Yield Insights, approximately 40% of U.S. consumers said they are willing to try CBD, based on unbiased research and physician recommendations.
