The Cannabis beverage market has seen a surge in growth owing to increasing demand for cannabis infused beverages. Cannabis beverages offer advantages like controlled dosing, accurate potency levels, convenient consumption and quick onset of effects. Cannabis containing beverages provide an alternative delivery system for users to consume cannabis orally for its therapeutic and recreational benefits.

The global Cannabis Beverage Market is estimated to be valued at US$ 547.43 Mn in 2023 and is expected to exhibit a CAGR of 61.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The opportunity in medical applications of cannabis beverages is expected to drive the market growth over the forecast period. With the increasing legalization of medical cannabis, there is growing acceptance of cannabis for treatment of various medical conditions like chronic pain, epilepsy, multiple sclerosis, etc. Cannabis infused beverages provide an effective and controlled delivery of cannabinoids for medical applications. They allow for accurate and consistent dosing which is an important factor for medicinal use. The convenient consumption of cannabis via beverages makes it appealing for geriatric patients and patients undergoing medical treatments. This is expected to garner popularity for cannabis beverages in the medical industry.

Porter's Analysis

Threat of new entrants: The cannabis beverage industry poses low threat for new entrants due to stringent regulations and legalization policies that vary across regions. High capital requirements for manufacturing and R&D capabilities also deter new players.

Bargaining power of buyers: Buyers have moderate bargaining power due toavailability of substitutes in the market. However, brand loyalty and unique taste propositions offered by leading brands provide some buyer lock-in.

Bargaining power of suppliers: Suppliers of raw materials like cannabis extracts, flavorings etc have high bargaining power due to limited availability of key ingredients and concentration of suppliers. This impacts operating costs for manufacturers.

Threat of new substitutes: Low threat as cannabis beverages offer specific functional benefits like relaxation that are difficult to substitute. However, non-alcoholic beverages remain substitute options.

Competitive rivalry: High due to presence of several global and regional players competing on the basis of pricing, marketing, taste, variety and brand loyalty. Sustained growth outlook also fuels competition.

SWOT Analysis
Strengths: Growing awareness, health benefits, wide availability and social acceptance are helping drive demand. Innovation and customizable products catering to tastes and needs.

Weaknesses: Legal restrictions in many regions pose logistical challenges. Quality and standardization issues. Expensive to manufacture compared to other beverages.

Opportunities: Many regions legalizing cannabis for medicinal and recreational use, expanding market potential globally worth billions by 2030. New product categories and innovations allowing for wider appeal.

Threats: Strict regulations around marketing and flavors for minors. Slow legalization phases and bans in conservative regions. Social stigmas and myths around cannabis use. Dependence on agricultural seasonality for key inputs.

Key Takeaways
The Global Cannabis Beverage Market Share is expected to witness high growth at a CAGR of 61% during the forecast period of 2023 to 2030.

North America dominates currently due to early legalization in Canada and several U.S. states, accounting for over 40% revenue share. However, the Europe region is expected to see faster market expansion led by the U.K., Germany, Italy, and Spain where regulations are progressively liberalizing medicinal and recreational use.

Key players operating in the Cannabis Beverage Market are Cargill Inc., Nu-Tek Food Sciences LLC, Koninklijke DSM N.V, Montana Indusrie Holding A.G., Angel Yeast Co. Ltd., Tate & Lyle Plc, and Innophos Holding Inc. Cargill and DSM have established footholds through technological partnerships and new product introductions catering to wellness and relaxation. Emerging players are directing R&D focus on non-alcoholic formulations, sugar-free options, and product variants for on-the-go consumption to boost market access beyond dispensaries.

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