Recent reports by Canaccord Genuity indicate the market for cannabidiol (CBD) beverages could achieve a value of $260 million in the United States by 2022.
CBD beverages form part of an even wider market for marijuana-infused drinks that is predicted to reach a value of $600 million in three years’ time.
- U.S market for CBD and THC beverages could reach $600 million by 2022.
- Cannabis-infused drinks could outperform other cannabis products.
- Non-cannabis and cannabis companies alike are joining this new market.
Canaccord Genuity reports indicate that cannabis and CBD-infused beverages have the potential to outperform cannabis products, reaching up to 20 percent of the market for cannabis-containing consumables by 2022.
“While these trends represent a significant opportunity for U.S. cannabis companies, they have not gone unnoticed by large mainstream beverage players looking to inject growth into their product portfolio,” said Canaccord analyst Bobby Burleson, who also predicts that ready-to-drink CBD beverages will form part of the growing market for wellness drinks.
Savvy companies are looking to position themselves in this burgeoning market, often by partnering with companies that provide invaluable experience in the sector. Youngevity International Inc. (NASDAQ: YGYI) recently announced it has formed a cross-marketing agreement with Icelandic Glacial™, a bottled spring water company in Iceland, which will see the pair develop new products including a ready-to-drink CBD beverage.
Youngevity first entered the $7.7 billion cannabis industry with the introduction of its Hemp FX™ brand in October 2018. The development of a ready-to-drink CBD beverage will be the first of the partnership’s potential new products. Future ideas may include possible special products for a range of markets based on CBD and other life-enhancing supplements.
“Hemp-derived cannabidiol aligns with what we do very well,” said CEO Steve Wallach. “We’ve taken what we know about essential nutrients, along with decades of knowledge specializing in natural, plant-based nutrition and their most beneficial nutrients, and put that knowledge to work to develop high-end cannabidiol products.”
Reports suggest the entire hemp-derived CBD market will hit $22 billion globally by 2022. Much of the focus on CBD-infused products and drinks is towards the healthy lifestyle consumer market. However, more big brand beverage companies are expected to enter the industry and create CBD-infused non-alcoholic beverages for a broader spectrum of consumers. CBD-focused developments and partnerships are likely to increase as industry regulation becomes clearer.