Cannabis belongs to the family of flowering plants in the Cannabaceae group. The number of the species within the same plant is disputed. Generally three species of cannabis may be recognized such as Cannabis indica, Cannabis sativa, and Cannabis ruderalis. The genus is widely accepted as originated and indigenous to Central Asia. The cannabis plant is sometimes also known as hemp, but this term is used primarily to refer only the varieties of Cannabis that are cultivated for non-drug use. It has long been to make hemp seeds, oil, hemp fiber, and hemp leaves for use as vegetables and juice, or even in medicinal purposes as a recreational drug. There are more than 100 different types of cannabinoids among which tetrahydrocannabinol (THC) and cannabidiol (CBD) are the most popular.
Several food and beverages are being prepared from Cannabis since last few years. Cannabis edible, or a cannabis-infused food is a type food product that contains cannabinoids, especially tetrahydrocannabinol THC or CBD. Most edibles that are made from cannabis contain a noticeable amount of THC, which induces a wide range of health effects, including relaxation, increased appetite, euphoria, anxiety, and fatigue. THC or CBD infused edibles food items are consumed for medical and recreational purposes. Food and beverages that are made by using non-psychoactive cannabis are called hemp foods. Cannabis-infused baked good is a common type of cannabis food. Popular varieties of such baked food include space cakes, pot brownies, and hash cookies. Some products such as Floyd’s of Leadville CBD Recovery Protein and snack protein bars are specially targeted at those athletes who are looking for CBD infused food products as a way of recovery after workouts.
Cannabis is considered as a drug which makes the consumer feel high, and thus, its use in food and beverage was limited and regulated in many countries until the start of the 21st century. However, cannabis has been legalized in many regions in the past few years and owing to this, the cannabis food and beverages market is expected to experience promising growth in the coming years. In the U.S., 33 states legalized medical cannabis and 10 states have legalized cannabis for adult use. Thus, this step toward legalizing cannabis is driving the growth of the cannabis food and beverage market.
Welcoming the legalization of Cannabis, established players are inventing food and beverages that are made from cannabis. There is a wide range of CBD mixed food and beverages products that are currently available in the market. Some of these products are olive oil, flavored waters, chocolate, cider, specialized tea, coffee, and lemonade. Apart from these products CBD infused wine is the new trend in the spirits. Moreover, many of the well established players in the market including the Coca-Cola Company, have mentioned that they are closely watching the development of cannabis market for food and beverage. Along with Coca-Cola, Walmart is also planning to make cannabis products available in their stores in Canada. Hence, this is expected to provide potential opportunities for the cannabis food and beverage market during the forecast period.
There are still regulations in many part of world about the use of cannabis while preparing food and beverages. This factor slows the growth of the cannabis food and beverages market in these regions, which is affecting the overall growth of the global cannabis food and beverage market.
The cannabis food and beverage market is segmented on the basis of product type, distribution channel, and region. The product type segment includes bakery products, chocolate, cereal bars, candy, beverages, ice cream, and others. On the basis of distribution channel, the segment is classified into mass merchandisers, specialty store, online stores, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key players operating in the global cannabis food and beverage market are Natural Extractions, Dixie Brands Inc., New Age Beverages Corporation, Coalition brewing, Beverages Trade Network, Lagunitas, General Cannabis Corporation, The Supreme Cannabis Company, Koios Beverage Corporation, and The Alkaline Water Company.
Key benefits for stakeholders
Key market segments
By Product Type
By Distribution Channel
By Region
Several food and beverages are being prepared from Cannabis since last few years. Cannabis edible, or a cannabis-infused food is a type food product that contains cannabinoids, especially tetrahydrocannabinol THC or CBD. Most edibles that are made from cannabis contain a noticeable amount of THC, which induces a wide range of health effects, including relaxation, increased appetite, euphoria, anxiety, and fatigue. THC or CBD infused edibles food items are consumed for medical and recreational purposes. Food and beverages that are made by using non-psychoactive cannabis are called hemp foods. Cannabis-infused baked good is a common type of cannabis food. Popular varieties of such baked food include space cakes, pot brownies, and hash cookies. Some products such as Floyd’s of Leadville CBD Recovery Protein and snack protein bars are specially targeted at those athletes who are looking for CBD infused food products as a way of recovery after workouts.
Cannabis is considered as a drug which makes the consumer feel high, and thus, its use in food and beverage was limited and regulated in many countries until the start of the 21st century. However, cannabis has been legalized in many regions in the past few years and owing to this, the cannabis food and beverages market is expected to experience promising growth in the coming years. In the U.S., 33 states legalized medical cannabis and 10 states have legalized cannabis for adult use. Thus, this step toward legalizing cannabis is driving the growth of the cannabis food and beverage market.
Welcoming the legalization of Cannabis, established players are inventing food and beverages that are made from cannabis. There is a wide range of CBD mixed food and beverages products that are currently available in the market. Some of these products are olive oil, flavored waters, chocolate, cider, specialized tea, coffee, and lemonade. Apart from these products CBD infused wine is the new trend in the spirits. Moreover, many of the well established players in the market including the Coca-Cola Company, have mentioned that they are closely watching the development of cannabis market for food and beverage. Along with Coca-Cola, Walmart is also planning to make cannabis products available in their stores in Canada. Hence, this is expected to provide potential opportunities for the cannabis food and beverage market during the forecast period.
There are still regulations in many part of world about the use of cannabis while preparing food and beverages. This factor slows the growth of the cannabis food and beverages market in these regions, which is affecting the overall growth of the global cannabis food and beverage market.
The cannabis food and beverage market is segmented on the basis of product type, distribution channel, and region. The product type segment includes bakery products, chocolate, cereal bars, candy, beverages, ice cream, and others. On the basis of distribution channel, the segment is classified into mass merchandisers, specialty store, online stores, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key players operating in the global cannabis food and beverage market are Natural Extractions, Dixie Brands Inc., New Age Beverages Corporation, Coalition brewing, Beverages Trade Network, Lagunitas, General Cannabis Corporation, The Supreme Cannabis Company, Koios Beverage Corporation, and The Alkaline Water Company.
Key benefits for stakeholders
- The report provides a quantitative analysis of the current market trends, estimations, and dynamics of the market size from 2019 to 2026 to identify the prevailing cannabis food and beverage market opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis of the size and segmentation assists in determining the prevailing market opportunities.
- The major countries in each region are mapped according to their revenue contribution to the global industry.
- The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the cannabis food and beverage industry.
Key market segments
By Product Type
- Bakery products
- Chocolate
- Cereal bars
- Candy
- Beverages
- Ice cream
- Others
By Distribution Channel
- Mass Merchandisers
- Specialty Store
- Online Stores
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- Switzerland
- Netherlands
- Rest of Europe
- Asia-Pacific
- Australia
- New Zealand
- LAMEA
- Uruguay
- Colombia
- South Africa
- Rest of LAMEA
Table of Contents
Chapter 1: Introduction
Chapter 2: Executive Summary
Chapter 3: Market Overview
Chapter 4: Cannabis Food And Beverages Market, By Product Type
Chapter 5: Cannabis Food And Beverages Market, By Distribution Channel
Chapter 6: Cannabis Food And Beverages Market, By Region
Chapter 7: Competitive Landscape
Chapter 8: Company Profiles
Executive Summary
According to the report titled, 'Cannabis food and beverage Market by Product Type, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2019-2026,' the global cannabis food and beverage market size was valued at $427.0 million in 2018, and is expected to reach $2,632.0 million by 2026, registering a CAGR of 26.6% from 2019 to 2026. North America dominated the market in 2018, accounting for around 45% of the total cannabis food and beverage market share.The cannabis food and beverage market hold a substantial scope for the market growth. The market is currently in its growth stage; however, its contribution to the global market is expected to increase significantly during the cannabis food and beverage market forecast period. Rise in legalization of cannabis in food and beverages by many countries has enforced the market to produce innovative products such as flavored waters, wines, butter, and other bakery foods. Growth of the global population and rise in per capita income boost the market growth, thus increasing the demand of cannabis food and beverages.
The legalization of cannabis in developed economies , such as U.S., and Canada, and Australia has increased the demand for cannabis infused beverages to their food. The increase in population coupled with per capita income has increased the demand for cannabis infused bakery items, further boosting the production of cannabis. The per capita income measures the average income earned per person in a given area (city, region, and country) in a specified year. It is used to measure a country's standard of living by dividing the area's total income by its total population. In emerging countries, per capita income is more as compared to developed countries and hence, the consumption of cannabis beverages and food is eventually higher.
The cannabis food and beverage market is segmented on the basis of product type, distribution channel and region. By product type, it is categorized into bakery products, chocolate, cereal bars, candy, beverages, ice cream, and others. The bakery products segment was valued at $89.37 million in 2018 and is expected to grow with a CAGR of 27.5% (2019-2026) to reach $582.00 million by 2026. The cereal bars segment is expected to be the fastest growing segment with a CAGR of 28.5% during the forecast period.
By distribution channel type, it is categorized into mass merchandisers, specialty store, online stores, and others. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, Switzerland, the Netherlands, and Rest of Europe), Asia-Pacific (Australia, and New Zealand), and LAMEA (Uruguay, Colombia, South Africa, and Rest of LAMEA). Countries such as Australia, the U.S., and the UK, spend the highest on cannabis food products. In addition, factors such as product availability, socio-economic status, per capita expenditure, and consumer purchasing power, are responsible for the growth of the cannabis food and beverage market in these regions.
Key Findings of the Study
The beverages segment is expected to grow at a CAGR of 28.3% during the forecast period.
Asia-Pacific is anticipated to dominate the cannabis food and beverage market growth, registering a CAGR of 31.4%.
North America is projected to contribute the highest market share during the forecast period, with around 40% market share in 2026, and CAGR of 26.0%.
The online sales segment is anticipated to dominate the global cannabis food and beverage market, with a CAGR of 29.1% during the forecast period.
The mass merchandisers segment is estimated to grow at a CAGR of 25.6% during the forecast period.
The global market is fragmented with the presence of several market participants across various regions. The strong presence of private label brands is also giving tough competition to global players. The key players operating in global cannabis food and beverage market industry include Natural Extractions, Dixie Brands Inc., New Age Beverages Corporation, Coalition brewing, Beverages Trade Network, Lagunitas, General Cannabis Corporation, The Supreme Cannabis Company, Koios Beverage Corporation, and The Alkaline Water Company.
Companies Mentioned
- Natural Extractions
- Dixie Brands Inc.
- New Age Beverages Corporation
- Coalition brewing
- Beverages Trade Network
- Lagunitas
- General Cannabis Corporation
- The Supreme Cannabis Company
- Koios Beverage Corporation
- The Alkaline Water Company.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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