Canada CBD-Infused Beverages Market - 2024-2031

Canada CBD-Infused Beverages Market - 2024-2031

Canada CBD-Infused Beverages Market reached US$ 580.01 million in 2023 and is expected to reach US$ 894.21 million by 2031, growing with a CAGR of 5.56% during the forecast period 2024-2031.

Consumers of the country are increasingly seeking wellness-oriented, non-intoxicating alternatives to traditional beverages, and CBD-infused drinks fit this demand. These products are marketed for their potential health benefits, such as stress relief, anxiety reduction, and pain management. With a growing consumer interest in functional drinks, the market has seen a rise in product innovation, offering beverages like sparkling waters, teas, and energy drinks.

The significant opportunities in the Canadian market, especially through product innovation and the expansion of non-alcoholic, wellness-focused offerings drive the further expansion of the market. Collaborations between traditional beverage companies and cannabis producers, such as Molson Coors partnering with Hexo Corp, open the door to a broader market reach and consumer trust. Furthermore, as demand for health-conscious products increases, CBD beverages can appeal to both wellness and fitness enthusiasts.

Dynamics

Rising Consumer Demand For Health And Wellness Products

According to the 2023 Survey on Mental Health and Stressful Events, approximately 8% of Canadian adults reported moderate to severe symptoms of PTSD. Furthermore, nearly two-thirds of adults in the country are exposed to at least one potentially traumatic event during their lifetime. These findings underscore the growing need for effective solutions to help Canadians manage stress, anxiety, and other mental health challenges.

As Canadians increasingly prioritize healthy lifestyles, there is a noticeable shift toward functional beverages that offer benefits beyond basic hydration. CBD-infused drinks, which are recognized for their potential to reduce stress, alleviate pain, and promote relaxation without the psychoactive effects of THC, have gained significant traction among consumers. This trend aligns with a broader movement toward natural alternatives to traditional health supplements and medications.

Competition from a Growing Range of Wellness Drinks

The CBD beverage market in Canada faces strong competition from a growing range of wellness drinks that offer similar health benefits without the same regulatory hurdles. Products infused with adaptogens, vitamins, and other natural supplements are gaining popularity for their stress-reducing, energy-boosting, and immunity-enhancing effects. Wellness drinks like those containing vitamins or herbal ingredients are widely accepted and easily incorporated into daily routines.

Unlike CBD beverages, wellness drinks are subject to far less regulation, allowing brands to bring products to market more quickly and with fewer legal concerns. They can reach consumers faster, often at lower prices, making them a more attractive option for those seeking functional beverages without the complexity of navigating cannabis regulations. Moreover, many consumers may be hesitant to try CBD-infused drinks due to a lack of understanding about CBD’s benefits.

Segment Analysis

The Canada CBD-infused beverages market is segmented based on ingredient type, product, grade, packaging type, distribution channel, and region.

Purity and Versatility of CBD Isolate

The Canada CBD-infused beverages market is segmented based on ingredient type into CBD isolate, broad-spectrum CBD, full-spectrum CBD, and water-soluble CBD. CBD Isolate tends to dominate the segment due to its purity and versatility. It is a refined form of CBD that contains 99% pure cannabidiol without any THC or other cannabinoids. CBD isolate is a popular choice for consumers who want to experience the benefits of CBD.

CBD isolate provides benefits such as pain relief, anxiety reduction, and inflammation control without the risk of ingesting THC, the psychoactive compound found in cannabis. CBD Isolate remains strong in the market among individuals seeking to avoid THC entirely or those who prefer the assurance of a THC-free product, further reinforcing its dominant position in Canada’s CBD beverage market.

Competitive Landscape

The major Canadian players in the market include Canopy Growth Corporation, Truss Beverages, Fluent Beverages, Aurora Cannabis Inc., Tilray Brands, Inc., Curaleaf Holdings Inc, Cannara Biotech Inc., and New Age Beverages Corporation.

Sustainability Analysis

The sustainability of the Canada CBD-infused beverages market is increasingly shaped by growing consumer demand for wellness-focused products. As CBD continues to gain popularity for its potential health benefits, including stress reduction, pain relief, and sleep improvement, the beverage sector is adapting to meet these needs. Producers are focusing on eco-friendly packaging, responsible sourcing of CBD, and transparency regarding production methods to align consumer preferences.

The Canadian market is benefitting from progressive regulatory frameworks, which support innovation in CBD product formulations while ensuring consumer safety. On the other hand, the environmental footprint of producing CBD-infused beverages is an area of concern, as the cultivation of hemp requires substantial land and water resources. To mitigate these environmental impacts, many companies are seeking to adopt sustainable agricultural practices.

By Ingredient Type
• CBD Isolate
• Broad-Spectrum CBD
• Full-Spectrum CBD
• Water-Soluble CBD

By Product
• CBD-Infused Soft Drinks
• CBD-Infused Alcoholic Beverages
• CBD-Infused Tea & Coffee
• CBD-Infused Sports & Functional Drinks
• CBD-Infused Water
• Other

By Grade
• Pharmaceutical Grade
• Food Grade

By Packaging Type
• Cans
• Bottles
• Tetra Paks
• Others

By Distribution Channel
• Convenience Stores
• Specialty Stores
• Bars and Restaurants
• Online Retail

Key Developments
• In October 2024, Climbing Kites launched THC and CBD-infused beverages in Athens. The sparkling waters, available in flavors like Orange Mango and Pineapple Passionfruit, contain 100% naturally derived Delta-9 THC and full spectrum CBD, with varying levels of both.
• In April 2021, Truss Beverage Co. launched six additional made-in-Canada CBD and THC-infused beverages. This expansion further strengthens their portfolio of cannabis beverages, which is the largest in Canada, offering new options for consumers in the growing cannabis drink market.
• In November 2020, Canopy Growth Corp. launched Quatreau line of CBD-infused sparkling waters in Canada. The range includes two variants: one with CBD and the other with a small amount of THC, tapping into the rising demand for cannabis beverages during the pandemic.

Why Purchase the Report?
• To visualize the Canada CBD-infused beverages market segmentation based on ingredient type, product, grade, packaging type, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous CBD-infused beverages market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Canada CBD-infused beverages market report would provide approximately 36 tables, 38 figures and 195 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies