The beverage industry is possibly the most ubiquitous market that CBD could possibly enter. Everyone drinks a beverage of some sort; it’s a fundamental human necessity, and CBD beverage companies are racing to capitalize on every opportunity.
The U.S. beverage market neared $180 billion in retail sales in 2018, which was an 3.8% increase in retail sales and a 2.2% increase in volume sold. In 2018, the industry’s bottled water, ready-to-drink coffee and tea, carbonated soda, energy drinks and sports drinks segments saw continued growth. Only fruit beverages saw a sales decline (falling by 1.2%).
According to Brandessence Market Research, the market for CBD beverages will be worth $260 million by the end of 2022 and the combined THC and CBD market will reach $1.4 billion by 2024. By 2025 the global cannabis beverage market is estimated to reach value of $4.56 billion and have a compound annual growth rate of 16.8%, according to trend forecasting firm Fior Markets.
72% of CBD drink mentions in social media are related to fitness
Source: Brightfield Group
U.S. CBD drinks market value projections (by millions)
2020 $468
2021 $750
2022 $1,120
2023 $1,416
Source: Zenith Global
Consumers more likely to drink cannabis-flavored alcohol (with no THC) than regular alcohol
In recreational states with distribution 27%
In recreational states without distribution 19%
In states without recreational cannabis 30%
Source: Technomic
Places where CBD consumers purchase or would purchase product
Drugstore 49%
Online 43%
Supplements store 41%
Natural food store 36%
Convenience store 32%
Mass merchants 30%
Direct from producer 28%
Tobacco/headshop 28%
Grocery store 28%
Specialty grocery store 26%
Source: Technomic’s Q1 2019 Convenience-Store Consumer Market Brief
U.S. beverage market volume by segment 2017 – 2018
Value-Added Water 2017 15.5%
Value-Added Water 2018 16.6%
Energy Drinks 2017 8.6%
Energy Drinks 2018 8.4%
Ready-to-Drink Coffee 2017 8.8%
Ready-to-Drink Coffee 2018 7.9%
Bottled Water 2017 4.9%
Bottled Water 2018 7.3%
Sports Drinks 2017 2.8%
Sports Drinks 2018 4.9%
Ready-to-Drink Tea 2017 -0.3%
Ready-to-Drink Tea 2018 2.7%
Carbonated Soft Drinks 2017 -0.4%
Carbonated Soft Drinks 2018 2.4%
Fruit Beverages 2017 -3.0%
Fruit Beverages 2018 -1.2%
Source: Beverage Marketing Corporation
U.S. beverage market retail sales, volume and growth (2008-2018)
Year Millions of Dollars Millions of Gallons Dollar % Change Volume % Change
2008 $148,361.6 29,873.3 — —
2009 $143,542.5 29,069.0 -3.2% -2.7%
2010 $145,751.3 29,462.5 1.5% 1.4%
2011 $149,970.2 29,676.3 2.9% 0.7%
2012 $153,288.1 30,042.6 2.2% 1.2%
2013 $153,380.0 30,020.1 0.1% -0.1%
2014 $157,610.3 30,671.5 2.8% 2.2%
2015 $163,956.8 31,514.7 4.0% 2.7%
2016 $169,257.0 32,553.6 3.2% 3.3%
2017 $173,268.4 33,154.5 2.4% 1.8%
2018 $179,931.2 33,871.9 3.8% 2.2%
Source: Beverage Marketing Corporation