U.S. Cannabidiol (CBD) Infused Beverages Market, By Product (CBD Infused Soft Drinks, CBD Infused Tea & Coffee, CBD Infused Sparkling Water, CBD Infused Seltzers, CBD Infused Non-Alcoholic Beverages, and Others), CBD (Hemp-Derived and Marijuana-Derived), Type (Flavoured and Plain), Form (Liquid/Ready-to-Drink and Powder/Premix), CBD Content(Low, High, and Medium), Category (Conventional and Organic), Function (Cognitive Health, Neurodegerative Conditions Treatment, Sleep Enhancer, Immunity Booster, Skin & Hair Enhancer, and Others), Packaging (Cans and Bottles), Packaging Size (251-500 Ml, 100-250 Ml, 501-1000 Ml, Less Than 100 Ml, and More Than 1000 Ml), Distribution Channel (Store-Based Retailing and Non-Store Retailing), CBD Serums (CBD Skin Serums and CBD Hair Serums) - Industry Trends and Forecast to 2030.
U.S. Cannabidiol (CBD) Infused Beverages Market Analysis and Insights
CBD-infused beverages are widely used to treat insomnia, inflammation, chronic pain, depression, anxiety, and hyperemesis. Increasing consumer awareness regarding the health benefits of CBD is expected to drive market growth. In addition, rising demand for flavored CBD-infused beverages is further expected to drive market growth. Growing medical applications of CBD products are expected to provide market growth opportunities. However, side effects related to overconsumption or utilization of CBD products and government regulations are expected to challenge market growth.
Data Bridge Market Research analyses that the U.S. cannabidiol (CBD) infused beverages market is expected to reach the value of USD 501.93 million by 2030, at a CAGR of 14.7 during the forecast period.
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Report Metric |
Details |
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Forecast Period |
2023 to 2030 |
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Base Year |
2022 |
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Historic Years |
2021 (Customisable to 2015-2020) |
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Quantitative Units |
Revenue in USD Million |
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Segments Covered |
Product (CBD Infused Soft Drinks, CBD Infused Tea & Coffee, CBD Infused Sparkling Water, CBD Infused Seltzers, CBD Infused Non-Alcoholic Beverages, and Others), CBD (Hemp-Derived and Marijuana-Derived), Type (Flavoured and Plain), Form (Liquid/Ready-to-Drink and Powder/Premix), CBD Content(Low, High, and Medium), Category (Conventional and Organic), Function (Cognitive Health, Neurodegerative Conditions Treatment, Sleep Enhancer, Immunity Booster, Skin & Hair Enhancer, and Others), Packaging (Cans and Bottles), Packaging Size (251-500 Ml, 100-250 Ml, 501-1000 Ml, Less Than 100 Ml, and More Than 1000 Ml), Distribution Channel (Store-Based Retailing and Non-Store Retailing), CBD Serums (CBD Skin Serums and CBD Hair Serums) |
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Country Covered |
U.S. |
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Market Players Covered |
PepsiCo, Weller, Cannabiniers., Sweet Reason, KANNAWAY USA, LLC., Kickback., Altitude., BellRock Brands Inc., A88CBD, CANN, Ablis, Wyld CBD, Harmony Craft Beverages., Daytrip Beverages., Recess, Neurogan, CBD Living., PURAVIDAORGANIC, and ONE HUNDRED COCONUTS, LLC among others. |
Market Definition
Cannabidiol (CBD) infused beverages containing cannabinoid drugs derived from the Cannabis Sativa plant. These medications are primarily classified as tetrahydrocannabinol (THC) and cannabidiol (CBD) (CBD). CBD-infused beverages are widely used to treat insomnia, inflammation, chronic pain, depression, anxiety, and hyperemesis, among others.
U.S. Cannabidiol (CBD) Infused Beverages Market Dynamics
This section deals with understanding the market drivers, advantages, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Increasing Consumer Awareness Regarding Health Benefits of CBD
The demand for CBD products has been on the rise, especially from the consumer's end, due to the rising awareness health benefits of CBD. This will help the CBD market in the U.S. to witness rapid growth with the increasing demand.
CBD beverages are considered a natural remedy for a variety of health conditions. CBD-infused beverages are believed to treat varieties of health conditions, including pain, anxiety, central nervous system disease, epilepsy, and others.
For instance,
- According to Harvard Health, the ability of CBD to treat epilepsy may be the strongest indication of its health benefits. CBD drinks offer relief to sufferers of chronic pain, arthritis, and acne. It also helps in treating insomnia and mental health disorders, including anxiety and depression
Furthermore, the increasing availability of information from credible sources, including scientific research and media, has increased consumer awareness. Consumers are better equipped to make knowledgeable choices and incorporate CBD-infused beverages into their wellness regimens. Therefore, rising awareness of consumers on the wellness of the products and a growing number of health-conscious consumers is driving the growth of the cannabidiol (CBD) infused beverage market.
- Rising Demand for Flavored CBD-Infused Beverages
Consumers are increasingly seeking out beverages that offer health benefits and a pleasurable taste experience. Flavored CBD-infused beverages offer a combination of potential wellness properties and enjoyable flavors, making them attractive to health-conscious individuals.
The increasing demand for flavored CBD-infused beverages has enabled manufacturers to launch new products in the U.S. with a wide range of flavors available. Consumers can choose beverages that suit their tastes and personal preferences. The flavors make CBD-infused beverages feel more as a regular beverage choice, contributing to broader acceptance and market growth.
Moreover, flavored CBD-infused beverages have the potential to attract new consumers who may be intrigued by the new and exotic flavors. The launch of different flavors may help enter individuals who prefer CBD-infused beverages.
Hence, the wide availability of various flavors, such as orange, raspberry, passionfruit, and lime among others, in the market and manufacturing, providing plenty of choices to consumers regarding flavors, is expected to drive the market growth.
Restraints/Challenges
- High Prices of CBD Beverage as Compared to Conventional Products
CBD is a popular and holistic choice for people struggling with pain, inflammation, and sleep problems. Since CBD is a new product with less research and development and has lately been regulated and approved, the price of CBD is subject to fluctuations. The production of hemp became legal in 2018 in the U.S., affecting CBD product prices.
The high price of CBD products is due to various reasons, including its novelty and difficulty in extraction. The major reasons include the difficulty and time taken in growing and producing the raw material and producing the beverages and the number of fees that growers and distributors have to pay to get the products standardized and approved before their launch.
Moreover, CBD-infused beverages often incorporate natural flavors, sweeteners, or herbal extracts. These ingredients meet consumer demands for natural and organic options and can come at a premium price, further contributing to the overall cost of CBD beverages.
Thus, high prices in the processing and production of cannabidiol lead to increased prices of CBD infused drinks that may restrain the growth of the U.S. cannabidiol (CBD) infused beverages market.
- Availability of substitutes for CBD infused in beverages
Adaptogens are a group of herbs or substances that are believed to help the body adapt and respond better to stress. They have gained popularity in recent years for their potential health benefits. While CBD (cannabidiol) has been commonly used in infused beverages for its potential relaxing and calming effects, some manufacturers choose to incorporate adaptogenic herbs as an alternative.
These herbs, such as ashwagandha, rhodiola, ginseng, holy basil, and others, help support the body's stress response, boost energy, and promote overall well-being. Manufacturers aim to provide consumers with functional beverages that offer potential benefits for stress relief and mental well-being by utilizing adaptogenic herbs in beverages.
For instance,
- In September 2022, according to an article published in the Beverage Industry, botanical flavors and adaptogens are highly utilized in the food and beverage industry owing to their multiple health benefits and stress-releasing qualities
Moreover, other substitutes, such as herbal infusions and terpenes, are added to the infused beverages to provide necessary health benefits without strict government regulations. The substitutes are easily available and offer similar kind of effects as CBD. Hence, manufacturers focus on including substitutes to provide consumers with infused beverages.
The rising trend of using substitutes instead of CBD in the beverages in U.S. beverages may restrain the market's growth.
Opportunity
- Increasing Investments in the Development of New CBD-Based Products
With the increasing trend of providing innovative and refined products in the market, manufacturers are spending large amounts on research, development, and acquisitions to expand their business and produce new CBD-based products. There has been a high demand for various CBD-infused beverages and serums. These highly demanded-beverages include tea, coffee, soft drinks, sparkling water, and seltzers.
The increasing demand has increased the number of trials to study the impact of CBD on certain health conditions, which is expected to develop new CBD-infused products, in turn providing an opportunity for the rise in demand in the forthcoming years. Furthermore, manufacturers are investing in developing new flavors and CBD-infused drinks, which may drive the growth of the U.S. cannabidiol (CBD) infused beverages market.
For instance,
- In June 2021, The Valens Company completed the acquisition of Green Roads for about USD 60 million. This acquisition grants The Valens Company access to the U.S. CBD market through a well-developed network of Green Roads and increases its product development potential
- In June 2021, Vertical Wellness, the U.S.-based Cannabidiol Company, merged with Canada-based Company CanaFarma Hemp Products Corp. Now offers multiple hemp-related products and services. This merger will help Vertical Wellness transform into a public entity with a combined worth of USD 50 million and develop new products for the market as per customer requirements
Thus, the new product development, increasing research and development activities, and various strategic decisions taken by key manufacturers may offer lucrative opportunities for the U.S. cannabidiol (CBD) infused beverages market growth.
Recent Developments
- In June 2022, Pepsico brand Rockstar Energy announced the partnership with Gaming and Entertainment Organization NRG. This partnership helped the brand build its recognition in U.S. through gaming community led to the company's development
- In February 2022, Pepsico brand Rockstar Energy announced the launch of a new energy drink named rockstar unplugged. These drinks are CBD-infused drinks containing hemp seed extract and Vitamin B. This launch helped the company to attract a large number of consumers, which helped in the growth of the company
U.S. Cannabidiol (CBD) Infused Beverages Market Scope
The U.S. cannabidiol (CBD) infused beverages market is segmented into eleven notable segments based on product, CBD, type, form, CBD content, category, function, packaging, packaging size, distribution channel, and CBD serums.
Product
- CBD infused soft drinks
- CBD infused tea & coffee
- CBD infused sparkling water
- CBD infused seltzers
- CBD infused non-alcoholic beverages
- Others
On the basis of product, the U.S. cannabidiol (CBD) infused beverages market is segmented into into CBD infused soft drinks, CBD infused tea & coffee, CBD infused sparkling water, CBD infused seltzers, CBD infused non-alcoholic beverages, and others.
CBD
- Marijuana-Derived
- Hemp-Derived
On the basis of CBD, the U.S. cannabidiol (CBD) infused beverages market is segmented into hemp-derived and marijuana-derived.
Type
- Plain
- Flavoured
On the basis of type, the U.S. cannabidiol (CBD) infused beverages market is segmented into flavoured and plain.
Form
- Powder/Premix
- Liquid/Ready-To-Drink
On the basis of form, the U.S. cannabidiol (CBD) infused beverages market is segmented into liquid/ready-to-drink and powder/premix.
CBD Content
- Low
- Medium
- High
On the basis of CBD content, the U.S. cannabidiol (CBD) infused beverages market is segmented into low, high, and medium.
Category
- Conventional
- Organic
On the basis of category, the U.S. cannabidiol (CBD) infused beverages market is segmented into conventional and organic.
Function
- Cognitive Health
- Neurodegenerative Conditions Treatment
- Immunity Booster
- Sleep Enhancer
- Skin & Hair Enhancer
- Others
On the basis of function, the U.S. cannabidiol (CBD) infused beverages market is segmented into cognitive health, neurodegerative conditions treatment, sleep enhancer, immunity booster, skin & hair enhancer, and others.
Packaging
- Cans
- Bottles
On the basis of packaging, the U.S. cannabidiol (CBD) infused beverages market is segmented into cans and bottles.
Packaging Size
- Less than 100 ml
- 100-250 ml
- 251-500 ml
- 501-1000 ml
- More than 1000 ml
On the basis of packaging size, the U.S. cannabidiol (CBD) infused beverages market is segmented into into 251-500 ml, 100-250 ml, 501-1000 ml, Less than 100 ml, and more than 1000 ml.
Distribution Channel
- Store-Based Retailing
- Non-Store Retailing
On the basis of distribution channel, the U.S. cannabidiol (CBD) infused beverages market is segmented into store-based retailing and non-store retailing.
CBD Serums
- Cbd Skin Serums
- Cbd Hair Serums
On the basis of CBD serums, the U.S. cannabidiol (CBD) infused beverages market is segmented into CBD skin serums and CBD hair serums.
Competitive Landscape and U.S. Cannabidiol (CBD) Infused Beverages market Share Analysis
The U.S. Cannabidiol (CBD) infused beverages market competitive landscape provides details of the competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, U.S. presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width, and breadth, and application dominance. The above data points only relate to the companies' focus on the market.
Some of the major market players operating in the U.S. cannabidiol (CBD) infused beverages market are PepsiCo, Weller, Cannabiniers., Sweet Reason, KANNAWAY USA, LLC., Kickback., Altitude., BellRock Brands Inc., A88CBD, CANN, Ablis, Wyld CBD, Harmony Craft Beverages., Daytrip Beverages., Recess, Neurogan, CBD Living., PURAVIDAORGANIC, and ONE HUNDRED COCONUTS, LLC among others.
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