Cannabis Drinks Market By Product Type (Alcoholic {Beer, Wine, Spirits, Others} Non-Alcoholic {Water, Smoothies, Tea, Juice, Others), By Flavor (Unflavored, Flavored {Fruits, Citrus, Berries, Watermelon, Others} Herbals {Mint, Lavender, Chamomile, Others}) Others), By Component (Cannabidiol (CBD), Tetrahydrocannabinol (THC)), By Packaging Type (Cans, Bottles, Tetra Paks, Pouches, Others), and By Distribution Channel (Online, Offline {Supermarkets and hypermarkets, Convenience stores, Specialty stores, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Cannabis Drinks market accounted for USD 1.74 Billion in 2024 and is expected to reach USD 9.25 Billion by 2035, growing at a CAGR of around 16.4% between 2025 and 2035. The cannabis drinks market is the emerging market of beverage manufacturers infusing their products with cannabis extracts, such as CBD (cannabidiol) and THC (tetrahydrocannabinol). Such drinks can be sodas and teas, energy drinks, or alternatives to alcohol, offering consumers a new means to experience cannabis effects. Market growth in the region is driven by rising cannabis legalization across regions and a high demand for non-smoking cannabis consumption options. The drinks are popular because they provide health benefits like stress relief, pain management, and relaxation. Innovation in flavors, formulations, and packaging has been the driving force for market expansion toward wellness as well as recreational consumers. The market will continue to change as cannabis becomes far more accepted and infused in mainstream beverages.

Report Scope:

Market Dynamics

• Cannabis legalization is fueling growth in the cannabis drinks market

The legalization of cannabis has been one of the primary drivers of growth in the cannabis drinks market. As countries as well as the U.S. states continue to legalize cannabis for personal and medicinal use, the demand for cannabis-infused beverages has surged sharply. Presently, in November 2024, 38 states plus the District of Columbia have legalized medical marijuana usage, though a few states have legalized the use of cannabis recreationally.

It expands the legal framework for the production of cannabis, contributes to the establishment of a regulated market, facilitates consumer safety, and fosters investment. Thirdly, tax revenues from the government on cannabis products are substantial in 2023 alone, U.S. states collected over $3 billion in cannabis taxes, only hastening growth and innovation within the industry. Legalization affords both producers and consumers sure security where confidence grows and the market increases.

• Growing Demand for Flavored CBD Drinks for Sleep and Stress Relief

Flavored CBD drinks that help people deal with sleeping and stress issues are catching on as part of the booming wellness trend in the cannabis drinks market. Natural remedies for stress and sleep disorders find an alternative non-intoxicating choice in CBD-infused beverages over traditional pharmaceuticals. In 2021, the U.S. CBD market was valued at more than $5.3 billion, with CBD products for wellness including drinks. Governments have backed this trend by allowing the legal sale of CBD products from hemp plants, which contain no more than 0.3% THC, through the 2018 Farm Bill.

Given increasing consumer demand for holistic health solutions, CBD drinks are increasingly becoming part of the wellness sector, now with relaxed regulation as well as an ever-growing demand to comprehend alternative plant-based alternatives. More positive health benefits of CBD are also being studied, which is helping the effectiveness of this substance to be validated. It also boosts consumers' confidence and contributes to market growth. Because of this, CBD drinks will also see more expansions in both domestic and international markets.

• Seasonal demand fluctuations impact forecasting and inventory in the cannabis drinks market

Demand is seasonal and could impose some restraint on the cannabis drinks market because consumption often fluctuates in different seasons. For example, cannabis beverages may have better sales during summer when the weather is hot because of their refreshing taste, while sales might reduce in colder months. This makes it difficult for producers to create an accurate forecast of demand, resulting in problems in inventory management.

This seasonality renders supply chain management and distribution difficult, making it hard to meet demand in the market consistently since growth is seen with this variability. Even though governments have accepted the multi-billion-dollar legal cannabis industry, all those challenges remain within and complicate planners among producers to plan in a better way. Moreover, inconsistent consumer behavior in different seasons limits sales at maximum levels throughout the year. Therefore, producers may experience revenue instability and find it challenging to make long-term planning.

• Rising Popularity of Cannabis-Infused Mocktails in the Non-Alcoholic Beverage Market

The increasing popularity of non-alcoholic drinks could represent an important opportunity for cannabis drinks, especially through cannabis-infused mocktails. Like other health-conscious consumers, mocktails offer alternatives to alcohol for social gatherings. Governments support this trend since they regulate legal sales of cannabis products, including the non-alcoholic options that include mocktails, particularly in places where cannabis has been approved.

As of 2023, 24 U.S. states have legalized recreational cannabis, providing legal cover for cannabis beverages. The increasing trend of legalization is likely to increase demand for advanced, alcohol-free cannabis drinks, creating a new market segment where producers can introduce trendy, wellness-oriented alternatives to traditional alcohol.

• Leveraging Popular Flavor Trends to Attract Mainstream Consumers in Cannabis Beverages

Infusions of cannabis beverages with popular flavor trends, which are always changing from tropical fruits, exotic spices, and botanicals, can increase their scope and attract mainstream consumers. As the 2022 Cannabis Consumption Report from the NIDA states, a growing number of customers are looking for new cannabis products that match their preferences in taste and lifestyle.

Another global trend relates to flavor experimentation in the food and beverage industry, as the market for flavored beverages continues its rapid growth. The infusion of popular, familiar flavors into cannabis beverages allows producers to meet consumer tastes while making those products more palatable to newly transitioning cannabis users. This alignment amplifies product attraction and helps bring cannabis consumption into mainstream behavior.

Industry Experts Opinion

“It has been on the forefront of creating sophisticated cannabis experiences which we believe will ultimately redefine the way people socialize.”

• Matt Darin, CEO of Curaleaf.

Segment Analysis

Based on the product type, the market of Cannabis Drinks has been classified into alcoholic and non-alcoholic beverages. The Cannabis Drinks market is further segmented by alcoholic beverage type into beer, wine, spirits, and others. Based on the non-alcoholic beverage type, the market is further classified into water, smoothies, tea, juice, and others. Among these, non-alcoholic beverages, particularly cannabis-infused water and tea are leading due to increasing consumer preference for healthier, low-calorie alternatives with controlled cannabis doses.

The Cannabis Drinks market is classified by flavor into unflavored and flavored options. Flavored beverages are further segmented into fruit flavors, herbal flavors, and other flavors. Among these, fruit flavors, particularly citrus, and berries, are leading due to their broad consumer appeal and refreshing taste profiles.

The Cannabis Drinks market is classified by component into Cannabidiol (CBD) and Tetrahydrocannabinol (THC). Among these, CBD-infused beverages are leading due to their popularity for potential wellness benefits and non-intoxicating effects.

Regional Analysis

North America is the largest region in the cannabis drinks market, driven by the legalization of cannabis both in the United States and Canada. In the United States, more than 38 states have legalized medical cannabis with several states also allowing recreational use. Such is the legal framework, creating an upsurge in demand for these cannabis-infused beverages, and growing momentum, particularly in non-alcoholic cannabis-infused waters, teas, and sodas.

The federally legal cannabis market in Canada also drives an acceleration in growth as consumer acceptance increases and innovation expands through cannabis drink offerings. In conjunction, the cannabis markets in both countries are expanding, and North America continues to dominate the global cannabis drinks market. Growth also is being stimulated by distribution channel development, including retail partnerships and e-commerce platforms that expand accessibility and enhance market penetration.

Europe is one of the fastest-growing regions in the cannabis drinks market. Even though cannabis remains illegal for recreational use in much of Europe, the increased acceptability of CBD-infused products by the wellness and functional beverage community is driving markets higher. Leading countries toward medical legalization are Germany, the UK, and Switzerland, which is expected to later be followed by recreational use. T

he popularity of CBD in teas, smoothies, and sparkling waters among others is helping the cannabis drinks market grow at a very high rate in Europe. Europe is also expected to be the best region when it comes to the new wave of cannabis regulation. Other factors that are fueling demand for cannabis-infused beverages across the region include the growing trend of health-conscious consumers who seek alternative wellness products.  

Competitive Landscape

The competitive landscape of the Cannabis Drinks market is shifting at a very rapid pace. Leading players such as Canopy Growth Corporation, Tilray, Inc., Curaleaf Holdings, and Trulieve Cannabis Corp. are leading the way. All these companies innovate with the support of a wide variety of cannabis drinks, ranging from CBD wellness drinks to THC-infused products.

Canopy Growth launched its beverage line under the "Tweed" brand and introduced new cannabis-infused drinks through its XMG brand by Tilray recently. Trulieve expansion in products with its partnership further indicates a competitive market. A rising quest for healthy, non-alcoholic beverages in tandem with the increasing legalization of cannabis has already sparked the growth and stiff competition from these players. As maturity is achieved in the market, competitive advantages are to be sustained through flavor innovation, product differentiation, and regulatory compliance.

Cannabis Drinks Market, Company Shares Analysis, 2024

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Recent Developments:

• In May 2024, Tilray Brands, Inc. launched new cannabis-infused beverages under its XMG brand, with two sub-brands: XMG Plus ("XMG+") and XMG Zero.
• In February 2024, DeltaBev, the world's largest cannabis beverage manufacturing facility, began operations in Los Angeles with CANN as its first production partner. The 45,000-square-foot plant features advanced canning, bottling, and "mini" production lines.
• In January 2024, Texas Original launched Elevate, its first cannabis beverage. The product features a balanced mix of CBG and THC, along with ingredients like turmeric and ginger juice.
• In September 2023, Curaleaf launched Zero Proof, a new brand of fast-acting THC drinkables. The first product, Squeeze, is available at all Curaleaf locations in Illinois.

Report Coverage:

By Product Type

• Alcoholic
  • Beer
  • Wine
  • Spirits
  • Others
• Non-Alcoholic
  • Water
  • Smoothies
  • Tea
  • Juice
  • Others

By Flavor

• Unflavored
• Flavored
  • Fruits
    • Citrus
    • Berries
    • Watermelon
    • Others
  • Herbals
    • Mint
    • Lavender
    • Chamomile
    • Others
• Others

By Component

• Cannabidiol (CBD)
• Tetrahydrocannabinol (THC)

By Packaging Type

• Cans
• Bottles
• Tetra Paks
• Pouches
• Others

By Distribution Channel

• Online
• Offline

• Supermarkets and hypermarkets
• Convenience stores
• Specialty stores
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Canopy Growth
• Aurora Cannabis
• Tilray, Inc.
• Cronos Group
• Trulieve Cannabis Corp.
• Curaleaf Holdings, Inc.
• Green Thumb Industries
• Aphria Inc.
• GW Pharmaceuticals, plc
• Harvest Health & Recreation
• Organigram Holdings Inc.
• Columbia Care
• Flowr Corporation
• Charlotte's Web Holdings, Inc.
• Verano Holdings
• MedReleaf Corp Inc

Frequently Asked Questions (FAQs)