Cannabidiol (CBD) is an active ingredient of cannabis but is non-psychoactive in nature. It offers many health benefits and has gained popularity among consumers as well as manufacturers over the years. They are rich in antioxidants, act as a hydrating agent in the body, are diet-friendly, good for brain functioning, and also act as pain-relievers. Most importantly, they are naturally stress reducing and also help in reducing the anxiety levels in a person.
According to a premium market intelligence report published by BIS Research, the Global CBD-Infused Beverages Market was estimated at $211.9 million in 2019. The market is expected to witness a compound annual growth rate of 30.91% during the forecast period, 2019-2025.
The market growth can be accredited to the growing demand for cannabis, along with an increase in its legalization in several countries. Also, the health benefits associated with CBD-infused beverages, along with the increasing acceptance of CBD-infused drinks by consumers and legalization in various sports, has further pushed the growth of the market. The increasing acceptance and the health benefits associated with CBD-infused beverages are expected to have a high impact on the market in the long run.
However, various market restraints, including the stringent regulations and the side-effects associated with CBD consumption, can restrict the growth of the market to a certain extent. The CBD-infused market has been categorized into alcoholic beverages and non-alcoholic ones, wherein the market share of non-alcoholic beverages was significantly higher than the alcoholic ones in 2019.
The CBD-infused beverages market has witnessed several strategical developments in the past few years, including partnerships, collaborations, joint ventures, new product launches and development, mergers and acquisitions, and business expansion and contracts, with partnerships, collaborations, and joint ventures taking the maximum share of the market. Recently, Liberty Health Sciences partnered with VCC Brands to Bring Award-Winning Cannabis-Infused Products to Florida. The Liberty Health is a provider of high-quality cannabis and announced that it has entered into a licensing agreement with VCC Brands. Another company, Proper Beverage Co., is a manufacturer of canned beverages, including energy drinks, soda, alcohol, tonics, and CBD-infused beverages. The company has opened a new co-manufacturing facility in Hudsonville.
Further, it has been observed that in the U.S., due to the lockdown caused by COVID-19, wine, beer, and other hard drinks are not being served as before, this can lead to a fall in the consumption volume by 1.8% in the current year. However, as per a study, it was shown that CBD-infused beverages actually contain less CBD than advertised.
Leafreport, an Israel-based CBD analysis company, tested 22 CBD-infused beverages in August 2020 to check the active ingredients and dosages, whether they are as per the labeled. As per the industry regulator, Leafreport the test analysis highlighted that there were two CBD beverages with inaccurate labeling, including Blue Label Naturals CBD Water and Sativa CBD Water, as they contain no CBD in them. The regulatory norms are stringent, and the industry as of today is battling with the challenges posed by it.
