Cannabis companies are starting to bet big on the untapped potential of the beverage sector. As more people begin to move away from smoking cannabis, we have seen tremendous growth in the industry's edibles, oils, and lotion sectors. Consumers want to enjoy their cannabis product without the harmful effect of smoke inhalation.
The beverage industry, which includes soft drinks, juice, coffee, bottled water, energy drinks, and others, is globally valued at around $1.5 trillion and $150 billion in the U.S. alone. Beverage companies are always looking to find the next major growth opportunity in their industry.
Several small and larger beverage makers have caught the attention of the major players in the beverage industry. These beverage entrepreneurs are experimenting with cannabis-infused beverages and test marketing them in several markets.
The cannabis industry is booming, and the beverage world isn't exactly sure how to get in on the action. A few big names have jumped on board with this new trend, like Molson-Coors, which released their line of cannabis-infused beverages in Canada; PepsiCo created a hemp-infused energy drink, and Canopy Growth introduced a top-selling CBD beverage. Jones Soda also announced the launch of a line of cannabis-infused sodas under the name Mary Jones. These are just a few prominent beverage industry names adding cannabis-infused, hemp-infused, or CBD-infused beverages to their product line.
Cannabis infusions and alcoholic beverages go hand-in-hand. Some companies are pairing the two types of products together for an even more enjoyable experience! For instance, you can enjoy cocktails at certain establishments that have been infused with marijuana. Several states are planning to launch such adult-use markets, and other states are contemplating venues such as lounges and bars that can make such alcohol and cannabis-based drinks.
Companies are betting that consumers will be more open to cannabis beverages as an alternative to alcohol consumption, which has various drawbacks. Cannabis is becoming more popular with health-conscious consumers who avoid smoking and looking for alternative products that won't affect them the next day.
It is like this analogy: Cannabis beverages are high-THC products, as beer and spiked seltzer beverages are to high-proof alcohol such as vodka, gin, and tequila.
The lower alcohol content of beer and spiked seltzer makes those drinks more appealing to more people in more situations. By the same token cannabis-infused drinks can reach a broader consumer base than traditional cannabis products.
However, for cannabis-infused beverages to meet overall consumer acceptance and reach their growth potential, several things need to happen, according to industry experts.
State labeling, testing, and packaging requirements need to be cohesive for cannabis beverages to scale. The need for separate regulations makes sense because these drinks are often mistakenly grouped in with edibles when they have different needs and/or characteristics. Lastly, on-site consumption, like in bars and restaurants, is critical to mainstreaming cannabis beverages.
The federal government has yet to legalize cannabis, so companies are hesitant about entering the industry. Alcohol brands have been quicker than others because it's not illegal in conjunction with beverages like water or coffee drinks that don't contain any alcohol.
The cannabis industry is a hotbed for regulation. The federal government has been strict about who can produce and sell what. Still, state laws vary significantly from one state to the next, which creates an uneven playing field in advertising, packaging, labeling, and even dosing instructions.
The end of federal prohibition will bring about a new era for infused cannabis beverages. The cannabis industry and regulators will need to prioritize policies and reconcile the regulatory conditions and state-by-state differences. We're also likely to see the industry come together and advocate for responsible consumption, standard procedures, and best practices.
The federal cannabis prohibition is attracting companies that produce CBD-only drinks. Sales of these products are expected to hit $2.5 billion in 2021, and they're available where cannabis isn't legal.
You may have heard of cannabis-infused beverages sold in Canada, but you will soon be able to enjoy them across the United States. The market for these drinks is predicted to grow by leaps and bounds over the next few years – so don't be surprised if someday you find one on your local grocery store shelf.
