August 11th, 2020
The results of the survey, conducted in May 2020 among 15,000 respondents worldwide, include both people that have already tried the category as well as those that haven’t but are interested in trying it.
Cannabis and CBD-infused drinks are among the fastest growing categories in the cannabis industry, despite business, regulatory and technical complications delaying many product launches in jurisdictions such as Canada, and erratic Novel Foods regulations overclouding the future of CBD as food in Europe. However, the last year has seen the launch of many new cannabis drinks products, as well as market launches in freshly opened jurisdictions of LatAm and Asia-Pacific, such as Mexico and Japan.
The appetite of the consumers is increasing across all geographies, starting by the most mature markets of North America, which show a higher overall penetration of cannabis products. We observe that value-added consumer goods such as infused food, drinks and cosmetics are slower to roll-out in most geographies, usually launched by strong specialist brands seeking the opportunity to avoid commoditization and achieve differentiation in a crowded market, retaining its healthy margins. In most countries that allow the sale of cannabis drinks, the first challenge to overcome is the route-to-market for an unmet demand which is already there.
The Impact Series: Disrupting Drinks details the result of Prohibition Partners’ unique consumer research polling, covering over 15,000 adults across seven-country markets evaluating usage, purchase and attitudes towards cannabinoid-based products. Our analysis also includes an investigation into the latest developments across global regulations and legislation, providing clarity for investors, operators and market entrants.
In the less developed European markets, demand will keep pace with supply for some time. Despite the surge of a plethora of small producers of beer, wine, spirits, sodas, water and energy drinks (among others) infused with CBD, the market is still far from reaching saturation. As awareness of the category increases, we can also expect a raise in willingness to purchase. Beer giant Molson Coors projects that 30% of cannabis sales will eventually be attributable to beverages in mature markets, and a trend in this direction has intensified since the start of the pandemic, with the category seeing higher growth than more conventional product formats like flower and oils.