(MENAFN- Straits Research)
Use of CBD has become a live issue, many countries are still viewing it for its constraints and not its benefits. However, there are many countries across the globe that are planning to legalize it based on its beneficial properties for various purposes such as medical purpose, in beverages, and commercial use among others. In this report, we are covering the use of CBD in North America, and one of the widely accepted form of CBD in the region is through beverages.
Popularity of the product is increasing rapidly in the U.S. According to a report, one in every seven Americans have personally used the cannabidiol (CBD) based products. This number has increased since the federal law has legalized the use of hemp based cannabis in the country. Although CBD was legalized, only 14% of the U.S. adults are using CBD based products. Moreover, younger Americans are inclined towards using cannabis based products for their therapeutic benefits, and as this non-psychoactive molecule can be infused with any non-alcoholic beer, water, coffee, and tea. In addition, CBD has the potential to reduce pain and anxiety, and to cure cognition and movement disorders, which is further uncapping several other opportunities for the CBD beverages market.
Juice to be a popular preference for CBD infused beverage
To better understand the CBD market, we have segmented the market by type, product type, distribution, and age group, and we have studied each segment in extreme detail.
By product type, the CBD beverages market is segmented into beer, water, juice, tea, coffee, and others.
CBD Infused fruit juice keeps the body hydrated, improves metabolism and digestion, and also fights viral infections. The knowledge of the benefits of CBD is spreading like a forest fire, more health conscious population is inclined towards the consumption of CBD infused juices instead of consuming tea and coffee. In addition, the U.S., Canada, and Mexico are expected to lead the segmental growth on account of high demand for ready-to-eat products, and beverages. To address to the increasing demand, leading manufacturers have launched CBD infused healthy juices such as ‘Drink 420' and ‘Vybes'.
By distribution, the CBD beverages market is segmented into storefront dispensaries, convenience store, online, and others
Storefront dispensaries or marijuana dispensaries in the U.S. are regulated by local government, where any person can buy cannabis and cannabis-related products. As of 2016, marijuana dispensaries were opened in Washington, Oregon, California, Colorado, Nevada, Arizona, New Mexico, Illinois, Michigan, Maryland, New Jersey, New York, Rhode Island, Connecticut, Massachusetts, and Minnesota. Moreover, some of the leading dispensaries in the U.S. are high expedition, great northern cannabis, cookies, exhale med center, and silver peak.
Convenience store has become widely popular in the U.S., as products are easily available in these stores, which is expected to further upsurge the sales of CBD beverages in the years to come. Another reason for the popularity of convenience stores is that it offers speedy services and on time delivery to its consumers. In addition, about 40% of the convenience stores operating in the U.S. are connected to a franchise opportunity, owing to the easy availability of the different brands of coffee, tea, products. In 2018, there were around 153,237 convenience stores present in the U.S., in accordance to the National Association of Convenience Stores.
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Increasing Adoption of CBD Beverages among Health-Conscious Population is creating opportunities for the market in North America
Some of the best qualities of a CBD based beverage is that it regulates the blood pressure, reduces the risk of heart diseases, improves digestion, and reduces the risk of cancer. As a result, health-conscious consumers in North America are inclining towards the consumption of CBD based beverages. To further study the status of CBD beverage market in North America we have carefully bifurcated the region into the U.S, Mexico and Canada.
In May 2019, Mexico Federal Commission have legalized the manufacturing of cannabis based food , beverages, and supplements, which has offered a lucrative opportunity for the CBD infused beverage manufacturers. The demand for CBD based beverages is increasing rapidly, and various leading manufacturers have entered the Mexico market to attend to the growing demand. For instance, in November 2018, Rocky Mountain High Brand sold its product through RCH Grupo's subsidiary in Mexico. Similarly, Green Lotus acquired CBD Life for the distribution of CBD beverages in the country. Moreover, major market players in Mexico are Constellation Brands, Inc. and California Drink, and these companies have a strong distribution network.
Recess and Youngevity are profiting from the CBD beverages market.
To ensure a high-quality buying experience, players are focusing on building and improving their distribution capabilities by expanding the number of own retail stores worldwide. By operating their own stores and locating them in desirable high-traffic locations, the players are trying to attract new customers by offering high-quality customer buying experience. The retail stores employ knowledgeable and experienced staff capable of providing product advice, service, and training. Moreover, the cannabis market is majorly driven by its players, and some of the well-known players in the CBD beverage market are Alkaline88, LLC, Rocky Mountain High Brands, Phivida, Cannara Biotech Inc, Kickback, Youngevity International, Inc., Recess, and Sprig. We have mentioned the details of leading players.
Recess, an internet-based retailer, manufactures and develops CBD beverages with 10 milligrams of full-spectrum hemp extracts. Recently, the company has started selling its products through brick-and-mortar stores. In February 2019, Recess Online brand opened its first store in New York to expand its operations, and it is also planning to open new stores in Los Angeles. Currently, the company is focusing on developing various strategies to raise brand awareness among consumers, and for that it is relying on social media sites such as Instagram. As of February 2019, Recess has raised funds of around USD 3 million to enhance the CBD infused beverage production.
Youngevity International Inc. manufactures nutritional products and commercial coffee, and the company operates its business through two segments, namely direct selling and commercial coffee. It also sells its products through commercial, retail, and direct sales channels. In 2018, the company generated revenue of USD 162.44 million. The company achieved this by implementing the strategies of acquisition, and spreading its distribution network. The company has its distribution network across Australia, Canada, Mexico, and the U.S
CBD based Beverages Market Segmentation
By Type
- Marijuana-derived
- Hemp-derived cannabis
By Product Type
- Beer
- Water
- Juice
- Tea
- Coffee
- Others
By Application
- Millennials
- gen-z
- Baby boomers.
By Regional Covered
America
o North America
o South America
Europe
o Western Europe
- Germany
- France
- U.K
- Italy
- Spain
- Rest of Western Europe
o Eastern Europe
Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia Pacific
The Middle East & Africa
o The Middle East
- Saudi Arabia
- UAE
- Qatar
- Rest of the Middle East
o Africa
" Crucial Insights The Report Provides:"
* Known and Unknown Adjacencies Influencing the Growth of Market
* Explorable Revenue Sources
* Customer Behaviour Analysis
* Target Partners
* Customized Geographical Data Based on Customers as well as Competitors
* Analysis of Market Size and CAGR between the Forecast Periods
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