PUBLISHER: Inkwood Research | PRODUCT CODE: 1489523
PUBLISHER: Inkwood Research | PRODUCT CODE: 1489523
The global CBD food & beverage market is expected to grow at a CAGR of 24.77% during the forecast period. While the base year considered for the studied market is 2023, the projection years are 2024 to 2032.
Foods and drinks infused with cannabidiol, a substance derived from the cannabis plant, are referred to as CBD products. CBD is well-known for its possible health advantages, including its ability to ease pain, lessen anxiety, and improve sleep. These include various products ranging from candy and snacks to tea, coffee, and water with added flavors.
Furthermore, the legalization of cannabis in numerous nations and jurisdictions has improved the regulatory landscape for the sector. Consequently, an increasing number of food & beverage producers are venturing into the market and introducing inventive CBD-infused merchandise. Product releases and partnerships between CBD companies and food & beverage brands are also on the rise in the market.
Key growth enablers of the global CBD food & beverage market:
Growing consumer knowledge of the advantages of including cannabis-infused beverages in one's diet is driving market expansion. These cannabis-infused beverages were first introduced to the market as edibles like brownies and gummy bears, which are frequently seen as bad choices.
Drinks, regarded as the most popular method of ingesting THC, are further expected to accelerate the expansion of CBD drink arcades. Beverages infused with cannabidiol are used to treat a range of medical ailments because of their neuroprotective and antioxidant qualities.
Additionally, since natural goods are more preferred compared to pharmaceuticals, the market is anticipated to develop significantly over the projected period.
Key growth restraining factors of the global CBD food & beverage market:
The regulatory measures that are applied to the sales of products are hampering demand from certain regions. A lack of federal regulation and a mishmash of state laws have made selling products featuring the cannabis-derived ingredient not worth the trouble.
Cannabis beverages are popular owing to their THC effects on consumers; however, it is not permissible in several developed and emerging countries. As a result, large companies have shelved plans for CBD products, and hundreds of start-ups have either shut down, shifted to other ingredients or simply tempered their growth projections.
Thus, laws regulating the promotion and production of THC products may deter the growth in the CBD drinks segment.
Global CBD Food & Beverage Market | Top Trends
SEGMENTATION ANALYSIS
Market Segmentation - Product Type and Distribution Channel -
Market by Product Type:
Bakery Products
Chocolate and Confectionery
Cereal Bar
Ice Cream
Other CBD Foods
CBD Water
CBD Tea and Coffee
CBD Energy Drink
CBD Cocktail
Other CBD Beverages
Market by Distribution Channel:
With the increased market penetration of e-commerce, the online retail store segment is expected to experience the fastest growth in sales among all distribution channels.
Online channel sales are driven by increased user convenience and autonomy. Accordingly, licensed stores are also likely to gain a significant market share in the coming years.
Stores displaying creative drinks with CBD-infused tastes are readily available. These shops give clients options and showcase a variety of goods.
Furthermore, due to their growing inclination for flavored beverages, a significant portion of the Generation Z population could ideally be buyers of CBD drinks.
REGIONAL ANALYSIS
Geographical Study Based on Four Major Regions:
Since CBD was accepted and legalized early on in the region, North America held the largest market share, characterized by a thriving CBD ecosystem.
As more individuals in the region explore the potential health benefits of cannabidiol, their interest in CBD-infused foods & beverages is expected to rise.
The 2018 Farm Bill's legalization of CBD products derived from hemp in the US has helped to expand the market for CBD-infused foods. Retailers, producers, and consumers have embraced CBD-infused foods and beverages as a result of the legislation's regulatory clarity, which has further expanded their availability and accessibility.
The existence of well-known brands, a vast retail environment, and an intelligent customer base have also propelled market expansion, positioning North America as a major player in the global CBD food & beverage market.
Major players in the global CBD food & beverage market:
Key strategies adopted by some of these companies:
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Frequently Asked Questions (FAQs):
A: The global market for CBD food & beverage is being held back by the regulatory measures controlling product sales, a lack of clear regulations, and a patchwork of national laws that make it difficult to sell products containing cannabis-derived ingredients.
A: North America is expected to dominate the global CBD food & beverage market. The region is a major player in the global CBD food and beverage market, largely due to the presence of well-known brands, a vast retail environment, and a knowledgeable customer base.