As the cannabis industry develops and evolves, CBD infused beverages are fast becoming the cool thing in cannabinoid consumption. With more states across the United States legalizing cannabis, CBD infused drinks are making their way into mainstream markets. But what exactly are CBD infused beverages, and why are they gaining such popularity among consumers and businesses alike?
What are CBD infused beverages?
CBD – short for Cannabidiol – is one of 113 cannabinoids that occur naturally in the hemp plant. It accounts for as much as 40% of the extracts that come from the hemp or cannabis plant. CBD infused beverages are drinks that have been combined with CBD extract. The resulting fusion creates a refreshing way to consume this popular beverage.
These drinks come in many forms, including:
- CBD-infused water
- CBD coffee and tea
- CBD-infused sparkling beverages
- CBD sports drinks and energy drinks
- CBD-infused alcoholic beverages (in some markets)
In 2023, Grand View Research reported the global cannabis beverages market was estimated to be worth $1.16 billion, with expectations of a 19.2% compound annual growth rate (CAGR) from 2024 to 2030. This growth is largely driven by the rising demand for wellness drinks and beverages infused with cannabis.
The benefits of CBD infused drinks
CBD infused beverages offer several potential benefits that are driving their popularity:
- Ease of consumption – For those who don’t enjoy the taste of CBD oil or the act of vaping, beverages provide a more palatable option.
- Precise dosing – Many CBD drinks come with a specific amount of CBD per serving, making it easier for consumers to monitor their intake.
- Discretion – CBD-infused beverages often look like regular drinks, allowing for more discreet consumption.
- Potential health benefits – While research is ongoing, CBD is being studied for its potential anti-inflammatory, anti-anxiety, and pain-relieving properties.
While research on CBD is still ongoing, a 2019 study published in the Journal of Clinical Medicine found that CBD may have potential benefits for anxiety, sleep disorders, and pain management. However, more research is needed to fully understand the effects of CBD, especially when consumed in beverage form.
The growing market for CBD infused beverages
The CBD beverage market is expanding rapidly. Recently, an American company called New Age Beverages launched a new range of CBD infused beverages in legalized states. This new line will include water, tea and other popular drinks with a CBD kick. New Age Beverages is known for their Bob Marley-branded products like teas and coffees, as well as their coconut water, Coco Libre, and various kombucha drinks.
The legal landscape of CBD drinks
The legal status of CBD infused beverages is complex and evolving. The 2018 Farm Bill legalized hemp-derived CBD at the federal level, but regulations vary by state and are still developing. The FDA is currently working on establishing clearer guidelines for CBD in food and beverages.
Brent Willis, CEO of New Age Beverages, explained that they are in talks with several retail outlets about stocking their prospective new product line. However, many companies are still navigating the regulatory landscape cautiously.
It’s important to note that while CBD is a component of marijuana, it does not have the same psychoactive effects as THC and won’t cause users to get high in the same way as smoking marijuana. This distinction is paramount for both regulators and consumers.
The FDA provides updates on the cannabis and cannabis-derived products, including CBD. It’s important that consumers and businesses stay informed about these developing regulations.
Competition in the CBD infused beverages market
The CBD infused beverages market is becoming increasingly competitive, with established beverage giants and new players entering the field:
- Pepsi – Introduced a hemp-infused “Rockstar Energy” drink in early 2022.
- Constellation Brands – Owner of Corona beer, has invested over $4 billion in Canopy Growth, a leading cannabis company.
- Heineken – Their Lagunitas brand has launched a cannabis-infused sparkling water in California.
- Molson Coors – Partnered with HEXO Corp to develop non-alcoholic CBD-infused beverages for the Canadian market.
- Alkaline Water Company – Launched a line of CBD-infused waters and beverages.
Challenges in the CBD beverage industry
Despite the growing interest, the CBD beverage industry faces several challenges. Here are four of the top difficulties:
- Regulatory uncertainty – The FDA’s stance on CBD in food and beverages is still developing, which creates uncertainty for manufacturers.
- Quality control – Ensuring consistent CBD content and quality across batches can be challenging.
- Consumer education – Many consumers are still unfamiliar with CBD and its effects; accomplishing this requires considerable educational efforts.
- Competition – As more players enter the market, it becomes increasingly difficult to stand out.
For businesses looking to enter the CBD beverage market, it’s essential to stay compliant with packaging regulations. Green Rush Packaging offers child resistant packaging that can be adapted for CBD beverages for safety and compliance.
The future of CBD infused beverages
Many companies in the food and beverage industry are looking to enter the cannabis market. Paul Rosen, CEO of Tidal Royalty (a financing firm for cannabis companies), suggests CBD-infused products could soon become widely available, even in popular chains like Starbucks.
Willis, with his experience at both Coca-Cola and Anheuser-Busch InBev, believes that the popularity of smoking marijuana may decrease as people opt for CBD infused beverages and other CBD products. He acknowledges the beverage industry is typically conservative, and branching out into cannabis is a big leap.
As the market matures, we can expect to see:
- More diverse product offerings
- Improved formulations for better taste and efficacy
- Clearer regulations and standards
- Increased mainstream acceptance and availability
Packaging considerations for CBD beverages
As the CBD infused beverages market grows, packaging plays a crucial role in product differentiation and compliance. Key considerations include:
- Child resistant packaging — Many jurisdictions require child-resistant packaging for CBD products.
- Clear labeling — Accurate CBD content, dosage information, and legal disclaimers are essential.
- Tamper-evident seals — These help ensure product integrity and consumer safety.
- UV protection — Some CBD beverages may require protection from light to maintain potency.
When it comes to packaging design, it’s all about standing out on the shelf. Our guide on how to create cannabis packaging that sells includes tips that can be applied to CBD beverage packaging as well.
Conclusion
CBD infused beverages are an exciting frontier in the cannabis industry. As regulations evolve and consumer acceptance grows, we can expect to see more CBD drinks in various retail settings. For businesses looking to enter this market, staying informed about regulations, investing in quality ingredients and production processes, and choosing the right packaging are key to success.
Whether you’re a consumer curious about trying CBD drinks or a business looking to enter the market, the world of CBD infused beverages offers exciting possibilities. As always, consumers should consult with healthcare professionals before adding CBD to their wellness routine, and businesses should work with legal experts to navigate the complex regulatory landscape.
For more information on cannabis packaging trends, check out our blog post on the evolution of cannabis packaging. And if you’re interested in the broader cannabis market, don’t miss our article on how cannabis sales are projected to beat soda sales by 2030.
If you’re interested in the broader cannabis industry trends, our post on 10 cannabis industry trends to watch for includes valuable insights that are also relevant to the CBD beverage market.
The world of CBD infused beverages holds exciting possibilities. As this market continues to grow, partnering with experienced packaging providers like Green Rush Packaging will help ensure your products are both compliant and appealing to consumers.
