The CBD Drink Industry Explained

The CBD Drink Industry Explained

June 26, 2019

From CBD coffees to CBD water, the CBD beverage industry is kicking it into high gear. Learn more about demand for CBD drinks with myCBD.org.

What are CBD drinks?

With the wellness potential of CBD seeing the non-psychoactive cousin of THC added to everything from tinctures to topicals, it’s.l not surprise that companies are rushing to perfect the CBD or cannabis infused beverage. However, when it comes to the chemical components of cannabis, namely cannabinoids like CBD cause fundamental issue for a product producers: Cannabinoids are hydrophobic, or insoluble in water. That creates confusion for consumers, primarily: How was the CBD infused, and, thus, will they feel its effects? The answer to the latter largely depends on the former.

“For compounds like CBD that don’t really mix well with water, usually you have to put another agent with it to help it dissolve,” said Dr. Yasmin Hurd, a professor of neuroscience, pharmacological sciences and psychiatry at New York City’s Icahn School of Medicine at Mount Sinai. “Different ways used by people or the pharmaceutical industry are being adapted by cannabinoid companies.”

Examining the International Development of the CBD Beverage Industry

With the rapid development of the cannabis and CBD industries bolstered by international investment and legalization movements, the market for cannabidiol (CBD) beverages alone 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 with the U.S market for CBD and THC beverages reaching $600 million by 2022 according to some time estimates.

Could CBD and Cannabis-infused drinks outperform other cannabis products?

With the legalization of hemp and temper-derived products in America and around the world, savvy companies are looking to position themselves in this burgeoning market, often by partnering with companies that are able to provide insight to the sector. One example is Youngevity International Inc., an omni-direct lifestyle company, and its recently announced cross-marketing agreement with a bottled spring water company, to develop a mainstream-friendly CBD drink.

What kinds of CBD products do consumers demand?

Recent reports by Canaccord Genuity 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.

Indeed, a number of U.S and Canadian pharmaceutical, cannabis, beverage and even lifestyle companies have developed or are planning to develop CBD-infused beverages. These developments often begin with, or result in, new partnerships.

What Does the Future Hold for CBD?

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.

For example, medical cannabis company Tilray announced a research partnership with Labatt Breweries parent company AB InBev to explore the potential of THC- and CBD-infused non-alcoholic beverages. Although this partnership will be limited to Canada, with Tilray participating through its Canadian adult-use cannabis subsidiary, the partnership calls for each company investing up to $50 million in the project, proving that companies are banking on sustained consumer demand in federally legal markets.

Another company benefiting from mainstream investment, is Canopy Growth Corporation, which continues to benefit from a massive multibillion-dollar investment by Corona-beer maker Constellation Brands. Their move will extend the collaboration from the development of cannabis-based beverages to co-developing products across a complete range of cannabis extracts. This also allows Canopy Growth to grow to scale in the more than 30 countries considering legalization of medical cannabis while establishing essential infrastructure required in supplying new recreational adult-use markets.

Stay Ahead of the Curve with myCBD.org

In the US and around the world, sales of CBD-containing products are on the rise, and industry watchers expect a growing market in years to come. Make sure you know where the money is going and what CBD drinks, products, and brands you can trust with myCBD.org.

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