US CBD drinks market to rise to over $1bn
US sales of cannabis-based drinks are predicted to surpass $1billion in 2022, according to the 2019 US CBD Drinks Report from Zenith Global and US industry newsletter, Beverage Digest.
In 2018, the CBD drink market jumped to $86m, and is expected to rapidly achieve mass market appeal over the next few years.
“Key growth drivers for CBD drinks include loosening regulatory implementation, investment by major brewers and innovation by numerous start-ups,” said Zenith global chairman Richard Hall. “This has led to far greater awareness and availability.”
“A cultural shift in consumption also contributes. Consumers increasingly look for natural products with health benefits and are reducing their alcohol intake,” added Beverage Digest executive editor Duane Stanford. “CBD drinks are positioned as a potential aid for conditions from anxiety to muscle pain.”
The United States, in particular, has been a hot spot for CBD drink innovation. The category received a potential boost in December with passage of the Agriculture Improvement Act of 2018, which removed hemp from Schedule 1 of the Controlled Substances Act.
Cannabis has two main active constituents – CBD and THC. THC is the element that gives an emotional high and has not been licensed for consumer products. CBD, which is an abbreviation of cannabidiol, has some reported benefits and is in the process of gaining the necessary approvals for consumer products.
The quantity of CBD in beverages varies from 2mg to 100mg per litre. The 2019 US CBD Drinks Report profiles more than 20 brands which span numerous segments such as soda, tea, cold brew coffee, shots, energy drinks, water (still, sparkling and flavored) and beer.
This report also assesses opportunities for other CBD products, international prospects and developments in US legislation.