Global Cbd Food & Beverage Market Forecast 2024-2032

Global Cbd Food & Beverage Market Forecast 2024-2032

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.

MARKET INSIGHTS

Key growth enablers of the global CBD food & beverage market:
• Increasing awareness of CBD benefits in food and high interest in health & wellness trends
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.
• Favorable legalization and regulatory changes boost CBD use in the food & beverage industry
• Increased demand for CBD-infused food & beverages from millennials & Gen-Z

Key growth restraining factors of the global CBD food & beverage market:
• Strict regulations to slow down market growth
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.
• High-quality CBD extracts can be expensive, which may result in higher product prices

Global CBD Food & Beverage Market | Top Trends
• The demand for CBD-infused snacks and confectionery goods is rising, and popular beverages, including tea and coffee, are among the emerging trends in the global CBD food & beverage market. Additionally, there is growing interest in oils and tinctures infused with CBD for use in baking as well as cooking.
• In addition, a rising number of vegan and organic CBD food & beverage products are hitting the market, satisfying consumer demand for sustainable and healthful goods. Firms are also likely to propel market expansion through inventive product formulations and flavor profiles as they consistently investigate novel approaches to integrate CBD into a range of food & beverage offerings.

SEGMENTATION ANALYSIS

Market Segmentation – Product Type and Distribution Channel –

Market by Product Type:
• CBD Food
Bakery Products
CBD-infused bakery items, including bread, cookies, brownies, and other baked goods, hold the largest market share due to their widespread consumer appeal and the ease with which CBD can be incorporated into these products.
This product diversification caters to different consumer preferences and lifestyles, further expanding the market appeal of CBD-infused food products.
Endorsements from celebrities and influencers, along with positive media coverage highlighting the potential benefits of CBD, have raised awareness and generated curiosity among consumers.
This increased visibility has contributed to the mainstream acceptance of CBD-infused food products globally.
Chocolate and Confectionery
Cereal Bar
Ice Cream
Other CBD Foods
• CBD Beverage
CBD Water
CBD Tea and Coffee
CBD Energy Drink
CBD Cocktail
Other CBD Beverages

Market by Distribution Channel:
• Supermarket and Hypermarket
• Specialty Store
• Online Retail Store
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.
• Other Distribution Channels

REGIONAL ANALYSIS

Geographical Study Based on Four Major Regions:
• North America: The United States and Canada
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.
• Europe: The United Kingdom, Germany, France, Italy, Spain, Belgium, Poland, and Rest of Europe
• Asia-Pacific: China, Japan, India, South Korea, Thailand, Malaysia, Singapore, Australia & New Zealand, and Rest of Asia-Pacific
• Rest of World: Latin America, the Middle East & Africa

COMPETITIVE INSIGHTS

Major players in the global CBD food & beverage market:
• Alkaline88 LLC
• Curaleaf
• Canopy Growth Corporation
• Harney & Sons
• Weller

Key strategies adopted by some of these companies:
• CURE, a New York-based company, plans to introduce its line of functional beverages and dietary supplements with a CBD focus in Japan by April 2024. Meanwhile, some of the company’s products will be modified to comply with regulatory standards in other Asian markets.
• After the Thai government approved the use of cannabis in food and drink sales, Ichitan Group introduced the first packaged beverage flavored with terpenes in April 2021.



Frequently Asked Questions (FAQs):
• What are the key factors expected to slow down the progress of the global CBD food & beverage market during the forecast period?

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.
• Which region dominates the global CBD food & beverage market?

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.

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