Legalization of Marijuana for Medical and Recreational Purposes in Various Countries Has Led To Increasing Demand for Cannabis Beverages

 

Cannabis is fast growing in every segment of the drinks industry. Legalization of marijuana for medical and recreational purposes in various countries has further benefited several small and medium scale companies that offer various types of cannabis beverages. Moreover, increasing popularity of these beverages has also prompted several alcohol manufacturers and other market players to invest in marijuana-infused drinks. For instance, in November 2020, Canadian pot producer Canopy Growth Corp launched its first cannabidiol (CBD) infused beverage line in Canada. Similarly, in October 2020, Pabst Brewing Company, the producer of Pabst Blue Ribbon beer, announced the addition of a marijuana-infused seltzer to its lineup.

One of the major reasons in increasing preference for cannabis beverages is the low sugar content in these drinks. Moreover, consumers prefer these beverages as an alternative to cannabis smoking and consumption of other marijuana-infused products. Moreover, lab test results, which verify the quality of products also influence purchase of CBD-infused products. A recent study by New Frontier Data revealed that one of the top factors influencing the purchase of CBD-infused products are lab test results (77% of consumers) which verify the safety and purity of the product.

Europe is estimated to witness significant demand for marijuana-infused drinks with increasing preference for these drinks among consumers. Recently, proprietary consumer surveys from Prohibition Partners reported that over 30% of adults in Europe and North America are willing to try marijuana- infused beverages. Moreover, major market players focusing on launching products to keep up with the growing trend of wellness drinks.

However, implementation of generic packaging rules for cannabis beverages has led to major challenges for market players. For instance, in Canada, the federal government implemented new rules with strict edicts on packaging, including limitations on brand logos and descriptions of the product.