Visualizing the Boom in the CBD Beverage Market

Visual Capitalist  |

By Katie Jones

Visualizing the Boom in the CBD Beverage Market

It’s safe to say that the cascade of cannabis legislation has sent the world into a constant state of flux. We are witnessing a seismic shift in culture, as cannabis steps out of the black market and into unexpected industries—from big pharma, to beauty, and now to beverages.

According to Zenith Global, the U.S. CBD-infused drinks market will reach an estimated $1.4 billion by 2023, making it one of the fastest-growing segments in the overall industry.

Today’s infographic comes to us from Trait Biosciences, and outlines the magnitude of the CBD-infused beverage segment, along with some of the subsequent challenges and opportunities that will shape the future of cannabis.

CBD and its Benefits

CBD is an abbreviated term for cannabidiol, a type of cannabinoid that makes up 40% of a cannabis plant’s extract. It has become increasingly popular for relieving pain, promoting relaxation, and lifting mood without the psychoactive properties that come with THC (Tetrahydrocannabinol), the other major cannabinoid.

Recent studies suggest that CBD’s properties may be useful in combating a variety of health conditions such as epilepsy, schizophrenia, multiple sclerosis, migraines, arthritis, and even side effects of cancer.

The New Wave of Beverages

CBD-infused beverages will open the floodgates to new audiences who want to consume cannabis in different formats. They have many benefits, that will rival other methods of ingestion:

  • Easy to Administer
    Beverages are seen as the healthier way to consume CBD, especially compared to smoking.
  • More Accessible
    They are becoming more easily available in restaurants, bars, supermarkets, and online sites.
  • Functionality
    There is some evidence to suggest that CBD in caffeinated products can curtail the feeling of being on “edge.”
  • Higher Precision
    Dosage is controlled and, much like alcohol, consumers will be able to determine how much CBD content they want.

Both alcoholic and non-alcoholic product categories are currently being explored, resulting in some unexpected partnerships, such as Molson Coors—the world’s seventh largest brewer—and Hexo Corp, a Canadian cannabis product company.

Trends Shaping the Future of CBD Beverages

The CBD product landscape is constantly evolving. Demand for CBD-infused beverages will be fueled by three key trends.
  1. Changing Consumer Preferences: The decline of alcohol sales globally is evidence of changing consumer tastes. Sales are expected to fall further as more people exchange alcohol for cannabis products.
  2. Product Innovation: Sustainable packaging, transparency around ingredients, more convenient ready-to-drink solutions, and personalized strains are driving the furious pace of product innovation.
  3. Big Players and Influencers: Growing knowledge and increasing brand/celebrity endorsements are creating an established CBD industry in mainstream culture. Already, singer Willie Nelson and former NFL star Terrell Davis have put their names to two separate lines of CBD-infused beverages.

As these trends evolve, consumers will benefit from more education around CBD, which could lead to more CBD products, like beverages, entering the mainstream across numerous industries.

What’s Next for the CBD-infused Beverage Market?

CBD purity is a primary focus area of current scientific studies. For consumers, more transparency is needed around ingredients, dosage levels, and product labeling. For example, the state of Indiana now mandates that manufacturers must label CBD products with QR codes that can be scanned to show whether they contain acceptable levels of THC, CBD, pesticides, and other compounds. Most notably, new methods of CBD infusion will transform the beverages market. Many industry players have used nano-emulsion to infuse CBD. However, these fat-based nanoparticles have been known to accumulate in organs, causing health concerns. That’s why creating water-soluble CBD has been an emerging industry priority. CBD-infused beverages are poised to become the next big thing and create massive economic growth—despite strict industry regulations. Scientific advancements and changing laws may unlock the potential of the CBD market, potentially disrupting the entire beverage industry.

Equities Contributor: Visual Capitalist

Source: Equities News

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

I, or a firm that employs me, am a holder of the following securities securities mentioned in this article : none

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