Cannabis Based Alcohol Market Report Highlights-
Cannabis based Alcohol Market Outlook
Cannabis based Alcohol Market Analysis, 2021
Cannabis is a generic name for different preparations of the Cannabis sativa plant. The legalization of cannabis use for recreational purposes presents significant opportunities across foods, alcoholic and non-alcoholic beverages industries. Amid strong growth forecast for the Cannabis based alcoholic beverages market, the cannabis producing companies are focusing on new and advanced technologies, hydroponic growth and others for the cultivation of cannabis to boost production levels.
Cannabis constitutes two main components namely tetrahydrocannabinol (THC) and cannabidiol (CBD). Of this, THC is primarily found in buds and flowers of female plants. Only small traces of THC are being used in production of alcoholic beverages. CBD is obtained from leaves, stalks and flowers of cannabis plants and is widely used in the cannabis based alcoholic and non-alcoholic beverages. The main reasons include the potential advantages of CBD in reducing pain/illness, and smoothing/calming effect. Hemp seed oil or Cannabis sativa seed oil remain the primary ingredient in alcoholic beverages of cannabis.
Following the legalization of cannabis in Canada, Uruguay and some of the US states, the demand for cannabis in beverages, in particular, alcoholic beverages is witnessing wide attraction from brewing majors. Alcoholic drinks are being infused with tetrahydrocannabinol (THC) to serve customers planning to have a buzz. Further, drinks with cannabidiol (CBD) are considered largely for therapeutic and easing inflammation and pain purposes.
Amidst decline in beer consumption volumes following the marijuana legalization process, alcohol manufacturing companies are considering options of cannabis based alcohol and are increasingly participating in mergers, acquisitions and partnerships with cannabis producers.
Companies like Canopy Growth Corp are witnessing increased investments from brewers like Constellation Brands Inc to develop drinks comprising of THC. As these brewers have established distribution channels and popularity across youth and adults, they are focusing primarily on existing customer base.
Adult cannabis users remain potential customers for the segment. However, companies like Canopy are also planning to attract new users to cannabis with a better taste and a lower dose and big companies like Molson Coors Beverage Co. are launching CBD based drinks as low calorie drinks to excel in the industry.
CBD beers are alcohol free and are considered relatively healthy. Amid the disruptions in distribution caused by COVID-19, companies are focusing on developing canned cocktails and hard seltzers in addition to standbys like beer. Further, consumption across working class increased during the crisis period due to ease of availability, increased stress levels and convenience.
Overall, the market for cannabis based alcohol drinks is estimated to be $43.2 million in 2019. The market is still in initial stages of development and over the forecast period to 2026, the revenues generated from the sector will increase at 20.8% CAGR (compounded annual growth rate between 2020 and 2026) to reach $181.3 million.
Cannabis based Alcohol Market Trends- Increasing number of new product launches in the industry
New product launches across markets is being observed in the industry driven by foray of new players. Buffalo Soldier (Stockton Brewing Company) comprising cannabidiol or CBD, Cinnamon Kissed Cherry whiskey (Stylemate), Ceria Beverages (Keith Villa) with THC, Cannabis Jalapeno Bloody Mary Mix (Top Shelf) comprising CBD, cannabis rosé libation (House of Sake)- comprising of THC and CBD blend, Coastal Haze (High Style) beer with alcohol free content, Non-Alcoholic Cocktail Bitters (OTO), Dead Man's Fingers Rum (Halewood Wines & Spirits), Sparkling Rose wine (House of Saka), SOWFLO IPA (Beer infused with CBD), Hop Chronic (Flying Dog and Green Leaf Medical) THC infused beer, SuperCritical (Lagunitas Brewing Company), Cloud 9 CBD Ultra (High Flyer), Natural cocktails (Proposition), Sparkling Brut Rosé and the traditional Rosé (House of Saka) with THC and CBD blend, Green wine (Winabis) with infusion of CBD among others are some of the product launches.
Cannabis based Alcohol Companies analyzed in the Report
Cannabis based Alcohol Market Segmentation
1. TABLE OF CONTENTS 2
1.1 List of Tables 6
1.2 List of Figures 7
2. EXECUTIVE SUMMARY 9
2.1 Summary 9
2.2 The global food and beverage industry in 2020 10
2.3 Cannabis based Alcohol Beverages Industry Outlook, 2020 – 2026 12
2.4 Abbreviations 14
3. INTRODUCTION TO CANNABIS BASED ALCOHOLIC BEVERAGES MARKET 15
3.1 Market Segments - Types, Applications, and Countries 15
3.2 Report Guide 16
3.3 Research Methodology 17
4. MACROECONOMIC & DEMOGRAPHIC OUTLOOK 18
4.1 GDP Outlook, 2020 – 2030 18
4.2 Population Outlook of Select Countries, 2020 – 2030 19
5. OVERVIEW OF THE CANNABIS BASED ALCOHOLIC BEVERAGES MARKET 20
5.1 Industry Panorama 20
5.2 Major Companies 22
5.3 Market Trends 22
5.3.1 Increasing number of new product launches in the industry 22
5.3.2 Amid declining alcohol consumption among millennial, THC-Infused Beverages present strong demand 23
5.3.3 Lack of adequate financing options poses challenges for small players 23
5.3.4 New and advanced cultivation process being opted widely 23
5.3.5 Slow but steady change in perception of cannabis usage 24
5.3.6 Increasing Mergers and Acquisitions, partnerships in the industry 24
5.3.7 Uncertainty of Demand forecasts needs to be addressed for efficient supply chain handling 25
5.3.8 E-commerce presents significant growth opportunities for new entrants 25
5.3.9 Competition from inexperienced players poses challenges 25
5.4 Dominant Types 26
5.4.1 Beers 27
5.4.2 Spirits 28
5.4.3 Wines 29
5.5 Regional Outlook 30
6. GLOBAL OUTLOOK ACROSS COVID-19 SCENARIOS 31
6.1 Mild COVID Scenario 31
6.2 Harsh COVID Scenario 32
6.3 Severe COVID Scenario 32
7. NORTH AMERICA CANNABIS BASED ALCOHOLIC BEVERAGES MARKET 33
7.1 Outlook 33
7.2 Trends and Opportunities 34
7.2.1 Beers dominate the North American Cannabis Based Alcoholic Beverages Market 34
7.2.2 Canada dominates the North American Cannabis Based Alcoholic Beverages Market 35
7.3 Market Outlook by Country 36
7.3.1 United States 36
7.3.2 Canada 37
7.3.3 Mexico 38
8. EUROPE CANNABIS BASED ALCOHOLIC BEVERAGES MARKET ANALYSIS 39
8.1 Outlook 39
8.2 Market Outlook by Country 40
8.2.1 United Kingdom 40
8.2.2 Netherlands 41
8.2.3 Other Europe 42
9. ASIA PACIFIC CANNABIS BASED ALCOHOLIC BEVERAGES MARKET 44
9.1 Outlook 44
9.2 Trends and Opportunities 45
9.2.1 Beers dominate the Asia Pacific Cannabis Based Alcoholic Beverages Market 45
9.2.2 Australia dominates the Asia Pacific Cannabis Based Alcoholic Beverages Market 46
9.3 Market Outlook by Country 47
9.3.1 Australia 47
9.3.2 Japan 48
9.3.3 Rest of Asia Pacific 49
10. LATIN AMERICA CANNABIS BASED ALCOHOLIC BEVERAGES MARKET 50
10.1 Outlook 50
10.2 Trends and Opportunities 51
10.2.1 Beers dominate the Latin American Pacific Cannabis Based Alcoholic Beverages Market 51
10.2.2 Uruguay dominates the Latin America Cannabis Based Alcoholic Beverages Market 52
10.3 Market Outlook by Country 53
10.3.1 Uruguay 53
10.3.2 Rest of Latin America 54
11. MIDDLE EAST AND AFRICA CANNABIS BASED ALCOHOLIC BEVERAGES MARKET 55
11.1 Outlook 55
11.2 Market Outlook by Country 56
11.2.1 Middle East and Africa 56
12. COMPETITIVE LANDSCAPE 57
12.1 Canopy Growth Corporation 57
12.1.1 Overview 57
12.1.2 SWOT Analysis 59
12.1.3 Strategies 60
12.1.4 Key Financials 62
12.2 Heineken 64
12.2.1 Overview 64
12.2.2 SWOT Analysis 66
12.2.3 Key Financials 68
12.3 Anheuser-Busch InBev 69
12.3.1 Overview 70
12.3.2 SWOT Analysis 72
12.3.3 Strategies 73
12.3.4 Key Financials 74
12.4 Rebel Coast Winery 76
12.4.1 Overview 76
12.4.2 SWOT Analysis 78
12.5 CannaVines 79
12.5.1 Overview 79
12.5.2 Strategies 80
13. APPENDIX 81
13.1 About USD Analytics 81
13.2 Sources and Research Methodology 81
13.3 Copyright and Disclaimer 82