Cannabis Beverages Market

A product category that has recently caught attention of both consumers and cannabis industry players is cannabis beverages. Cannabis beverages are drinks infused with cannabinoids, such as THC and CBD. Although the category is still very small, accounting for around 1%-3% of total cannabis sales, demand for cannabis beverages has surged in recent years. This trend is driven by the global declining alcohol consumption – particularly among younger generations like Gen Z – as consumers increasingly seek alternatives that offer relaxation without the negative consequences. Unlike alcoholic drinks, cannabis-infused beverages provide a calming effect without hangovers or excessive sugar or calories. The growing appeal is evident in the results of a survey of beer drinkers conducted by researchers from the University of Tennessee Knoxville where around 53%-56% of respondents said that they would be interested in trying cannabis-infused beverages – a clear signal of strong potential demand among current alcohol consumers.

Cannabis beverages are also a more familiar way for cannabis-curious consumers to try cannabis. They may have never smoked before – and may not want to due to the health risks associated with smoking – but for those accustomed to enjoying beer, soda, or energy drinks, the beverage format feels natural and low-pressure. Plus, because drinking is often a social activity, cannabis-infused beverages allow users to enjoy their experience with friends, making them a comfortable and appealing choice.

Hemp beverages – which contain hemp-derived cannabinoids and terpenes – are also growing in popularity but they may not meet the needs of some consumers in the way that cannabis beverages can. The key difference lies in THC content: cannabis beverages typically contain significantly higher levels of THC, often up to 100mg per serving, enabling the euphoric and relaxing effects associated with recreational use. In contrast, hemp beverages are typically limited to 5mg of THC per drink, offering milder, wellness-focused benefits rather than psychoactive effects.

Despite these differences, both product categories have strong growth potential and coexist without competition—they appeal to distinct audiences. Hemp beverages attract health-conscious consumers seeking therapeutic relief and subtle calming effects, while cannabis beverages cater to those looking for a recreational experience similar to alcohol but without hangovers.

Hemp Beverages Market

The U.S. is currently the largest market for cannabis beverages which account for around 6% of its cannabis edibles sales and bring in an estimated $268 million in annual sales revenue. Data from BDSA reveals that from Q1 2024 to Q1 2025, cannabis beverage sales grew by 112% in Michigan, by 79% in Ohio, by 47% in Illinois, and by 35% in Maryland.

Cannabis Edibles Market

In Canada, beverages are identified as a separated product category and are the 4th most popular product form with nearly 23% of adult-use cannabis consumers reporting using them in the past 12 months.

As medical and recreational cannabis markets outside North America are still developing, cannabis beverages remain illegal for now in many countries. However, it can be anticipated that with increasing cannabis legalization and consumer acceptance, more cannabis beverages will be found in other markets alongside flower and oil products.

The global cannabis beverages market was valued at around $300 million in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 20% to reach $900 million by 2030. If cannabis beverages sales launch in markets outside North America, then the market could grow at an even faster CAGR.

Cannabis Beverages Consumer Preferences

According to BDSA, the most popular cannabis beverage product type are ready-to-drink items – accounting for 78% of cannabis beverage sales – followed by shots (11%) and powdered mixes (7%). Consumers prefer creative flavors in beverages such as Strawberry Lemonade, Fruit Punch, and Root Beer. Cannabis beverage consumers are mainly adults aged 25-44.

Cannabis-infused beverage users consume them frequently with more than 33% of respondents to a poll from a THC beverage company Crescent Canna saying that they drink at least one THC beverage per week and 45% saying that they drink at least three. Cannabis-infused beverage users are also quite loyal to the product category as nearly a third of the respondents said that they typically use alternative THC products less than once a week or not at all.

According to the poll, consumers primarily buy cannabis beverages online. The main reasons stated for cannabis beverage consumption were relaxation (78% of respondents) and enjoyment of the feeling that drinking cannabis beverages give them (64%).

Meanwhile, New Frontier Data found that though just 15% of current cannabis consumers say they use cannabis beverages, 39% of potential customers say that they are interested in trying them which shows that there is plenty of future demand to be satisfied.

How to Start a Cannabis Beverage Business?

Whether you want to manufacture cannabis beverages, sell them through a brick-and-mortar or online store, or even do both, you must first research the regulations of the specific state (if in the United States) or country where you wish to start your business. Once you determine which licenses you need and that you are eligible to obtain them, you can proceed to planning your business.

It is very likely that you will require finance to start your business – either from a bank or from investors – especially if you wish to start a capital-intensive manufacturing business or open a retail store selling cannabis beverages in an expensive premium location. In order to secure finance, you will need a comprehensive, straightforward business plan that will demonstrate the operational viability of your business.

Hemp CBD business plan templates are available at hempcbdbusinessplans.com.