Cannabidiol (CBD) is an active ingredient of cannabis but is non-psychoactive in nature. It offers many health benefits; thus, it has gained popularity among consumers as well as manufacturers over the years. Several countries have implemented laws concerning the use, sale, and possession of cannabis with definite THC and CBD content for the safety of human use. The legality of cannabis for different applications varies across countries in terms of its possession, distribution, cultivation, production of the end product, and medical conditions. These policies are usually regulated in most countries by their regulatory bodies but may differ among states within the same country.
Read Report Overview: cannabis beverages market
Marijuana and hemp are the best-known strains of cannabis sativa plant for its medical and recreational benefits. CBD and THC are the most important bioactive compounds present in the plant. Moreover, over 100 phytocannabinoid compounds have been identified in the Cannabis sativa plant alone. CBD is a non-intoxicating cannabinoid associated with health benefits and includes analgesic properties. THC, an intoxicating agent, is commonly present in marijuana but is present at less than 0.3% in hemp; thus, hemp is the preferred source for obtaining CBD. In recent years, the market for medical cannabis has seen a significant rise in demand, majorly from the CBD oil industry.
Extensive Research Demonstrating Massive Potential of CBD for Medical Benefits
Research concerning cannabis and its industrial derivative, hemp, is continuously evolving. Research activities have demonstrated the high potential of CBD for numerous medical applications ranging from pain management to curing headache and muscle spasms. CBD is also proven to be effective for the treatment of arthritis, cerebral palsy, and several other autoimmune and neurodegenerative diseases. Multiple research organizations, universities, and institutes such as National Institutes of Health, University of Strathclyde, and the University of Queensland, among others, of North America, Australia, China, and Europe are also conducting research studies to evaluate the antifungal, antibiotic, and anti-microbial properties of CBD.
Researchers are also conducting several pre-clinical and clinical trials to understand CBD’s effectiveness in treating cachexia, cancer, glaucoma, seizures, chronic obstructive pulmonary disease (COPD), cystic fibrosis, and Crohn’s disease, among others. A majority of the consumers mainly use CBD for reducing stress and anxiety. Despite the multiple benefits, the CBD consumption pose a risk of adverse side-effects, which is a significant drawback for the CBD industry. However, with the rising demand for CBD products, research and developmental activities are gaining thrust, thereby playing a crucial role in setting standards related to the chemical composition and the formulation of cannabis, while ensuring its safety for human consumption.
North America CBD-Infused Beverages Market
Owing to the legalization of cannabis in both Canada and the U.S., North America demonstrates the highest potential among all the countries for the growth of the Global CBD-infused beverages market. North America currently holds more than 90% of the global cannabis market, with the U.S. alone covering more than 85% of the total market in North America. The legalization of medical and recreational cannabis in significant states of the U.S. and Canada is considered the prime factor for the growth of North America’s CBD-infused beverages market.
Upsurge in Demand for Medical CBD Products Continue to Support the Market Growth
Research activities affirming a variety of medical and relaxation benefits of cannabis have resulted in an upsurge in its demand among consumers. Cannabis legalization has also played an active role in accelerating the CBD-infused beverages market growth. The easy availability of cannabis plants and easy execution of pure cultivation and harvesting steps also contribute significantly toward the growth of the market. With more companies entering the market and making significant investments, the CBD beverages industry is expected to grow at an unprecedented rate.
Non-Alcoholic CBD Beverages to Witness an Upsurge in Demand
With the rapid adoption of CBD-infused beverages and the excitement for the product among the consumers, has led to increasing demand for CBD-infused beverages in the non-alcoholic segment. Several well-established alcohol companies are showcasing an interest in the industry. They are investing in the manufacturing and distribution of CBD-infused alcoholic drinks, which are expected to witness high market growth in the coming years.
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Competitive Landscape
The strategies followed by various prominent companies of the global CBD-infused beverages market to sustain the competition and expand their market share vary from product launches to collaborations and partnerships. Among the different key developments, synergistic strategies (agreements, collaborations, and partnerships) have been the most preferred strategies for the past years (April 2017-April 2020). The global CBD-infused beverages market witnessed approximately 60 synergistic developments. The medium and small-medium enterprises are also venturing into the market and sustaining the competition through mergers and acquisitions as well as development and launch of new products. The following figure provides the share of different key developments and strategies for the period of April 2017-April 2020.