Market Introduction

The global CBD infused beverages market was valued at USD 4.30 billion in 2024 and grew at a CAGR of 17% from 2025 to 2034. The market is expected to reach USD 20.66 billion by 2034. The increasing legal leniency for CBD based foods and beverages will drive the growth of the global CBD infused beverages market.

CBD-infused drinks are drink products which have a non-psychoactive compound, cannabidiol (CBD), which is an extract of the cannabis plant. In comparison to the popular THC (tetrahydrocannabinol), CBD does not lead to a higher condition, which makes it a very good choice among those who are interested in the potential healing qualities of cannabis but do not want to get intoxicated. Such drinks belong to a very fast developing niche both in the health and wellness segment as well as in the category of functional drinks. They exist in forms such as sparkling water, teas, coffees, energy drinks, juices to name a few. It is driven by the assumed advantages of using CBD in stress reduction, control of anxiety, treatment of pain, and improved relaxation. A large number of consumers are switching to CBD beverages as a natural supplement to conventional pharmaceutical products. The emergence of CBD-infused beverages is closely linked to the higher rates of hemp-derived CBD legalization in markets such as North America or certain areas in Europe. The advancement in water-soluble CBD technology has been of crucial importance as well, since it makes it easier to incorporate CBD into a liquid form and it gives the body the opportunity to absorb it more efficiently, or in other words, it increases bioavailability of CBD. Big drink and wellness names have emerged in the market, and new companies keep pushing innovation in taste and healthy products. Gen Z and Millennials, especially, are flocking to the use of these beverages as a result of their believed natural healing capabilities, suitability to their lifestyles, and low chance of side effects. With more and more research done on the effects of CBD, and clearer legal definitions, CBD-infused beverages will become a common staple in the functional drinks category, and the borders of health, relaxation, and daily refreshment will become indistinguishable.

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Recent Development

• Business planning for Health Advance Inc. and SoEquity's hemp-derived CBD-infused beverage venture has begun with Southern Glazer's.  Through national distributors including ABC Fine Wine & Spirits and Total Wine & More, the alliance intends to offer THC labels made from hemp.  Due to high consumer interest, the company is refocusing its launch plan to include hemp-derived THC beverages after test marketing CBD-infused beverages under the Courtship Wines brand.  The Courtship Wines initiative is spearheaded by Calvin Frye, the CEO of SoEquity and an authority on the cannabis sector.

Market Dynamics

Drivers

Product innovations and changing consumer preferences – The fact that such drinks match the current customer interest in health and wellness is one of the key drivers of the market. CBD also has potential therapeutical effects such as stress reduction, reduction of anxiety, and the enhancement of sleep, which makes these beverages desirable among health-aware people. Firms are capitalizing on this attraction by developing products that offer natural, practical, benefits but lack the psychoactive results of THC. The other important internal strategy is the technological innovation especially in the technology of the water-soluble CBD and nano-emulsification. Such innovations also increase bioavailability of liquid form of CBD to allow absorption and uniformity of dosage that heightens consumer satisfaction and credibility of a given product. Moreover, beverage companies are launching a variety of flavours and types of products as sparkling waters, teas, coffees, and juices as well to fulfil the demands of various consumers and uses. Such a diversity does not only make it more appealing to the market but also promotes trial and repeating purchases. High-quality ingredients and shiny brand also contribute to position CBD drinks as a high-end lifestyle product and enable businesses to pursue a premium price policy and focus on a narrow yet promising market niche. In addition, well established CBD or wellness brands have struck strategic partnerships with beverage firms to produce products of high quality and accorded consumer trust that are easily accepted in the market.

Restraints

Inconsistent products with varying quality levels – It is a major issue that CBD products have not been standardized across brands. The discrepancy in dosage, the quality and the effectiveness pose a threat to the market’s growth as it erodes consumer trust and creates confusion in the market. Most products do not give the expected benefits stated and this limits the number of repeats as well as word of mouth advertising. Also, there is a problem of taste and aftertaste. Although positive technological advances have taken place, it is noted that certain types of CBD beverages retain the nasty taste of hemp or other types of bitter notes which is likely to turn off the customers that have never been exposed to the product before. Additionally, CBD of high quality is costly when it comes to the processing necessary to extract. High-quality CBD is especially costly to extract in the form of water-soluble. All this increases the price of the retail level thus inhibiting CBD beverages to the price sensitive consumers. Furthermore, CBD is a sensitive ingredient which has the ability to degrade with time or react with other ingredients affecting the efficacy and uniformity of products. This presents logistics difficulties of storing, distributing and quality check.

Opportunities

Changing regulations – Among the most important drivers is the increasing social tolerance of cannabis-derived products, and particularly, hemp-derived CBD, which is currently viewed by many as an all-natural way to cope with stress, anxiety, and other issues related to wellness. This move is intimately related to the changes in regulation, especially in North America and some jurisdictions in Europe, where the legalization and decriminalization of cannabis-derived CBD allowed the businesses to work on the development and marketing of their products with more freedom. As the legal clarity increases, market entry barriers will also go down thus enhancing innovation and growth. The surge in the use of natural and plant alternatives to conventional medicine and traditional alcohol can also be viewed as another factor positively influencing the market’s growth. Millennials and Gen Z consumers are embracing more holistic lifestyles and are focusing on products that meet those needs, choosing offerings that are non-intoxicating and have a therapeutic value as beverages rich in CBD certainly do. Also, media, wellness blogs, and even influencer marketing have done a lot to normalize the idea of CBD-infused products in people making them seem comfortable and eager to know more about them. The enhancement of distribution is also imperative; nowadays, CBD beverages have become more accessible via retail networks, health food markets, and online retail markets enhancement greatly increases visibility and accessibility.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global CBD infused beverages market, with a 38% market revenue share in 2024.

North America, especially the United States, has been on the rampage after the legalization of hemp-derived CBD was authorized and established by the 2018 Farm Bill. This landmark policy eliminated the inclusion of hemp among the controlled substances, and since then, companies are allowed to legally manufacture and sell CBD-infused products, which preconditioned the swift expansion of the industry. Additionally, Canada has also adopted an advanced approach to cannabis as recreational marijuana and CBD products were legalized across the country, making the market idealistic in terms of product growth and innovations. North America has the highest level of consumer awareness and acceptance of CBD than any other region. Natural remedies with the goal of alleviating stress, tensions, and sleep disturbances are streamlined by a massive, health-conscious market, which makes CBD-infused drinks a no-go functional wellness beverage. In addition, there is a competitive and innovative market as large beverage companies, wellness startups and cannabis brands are present in North America. The wide availability of its products has been enabled through strategic partnerships, intensive advertising and fine-grained retailing, all of which create ample visibility driving the market’s growth.

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Product type Segment Analysis

The product type segment is divided into non-alcoholic beverages and alcoholic beverages. The non-alcoholic beverages segment dominated the market, with a market share of around 64% in 2024. A relatively uncomplicated regulatory environment in non-alcoholic beverages containing CBD is one of the parameters why non-alcoholic beverages are leading in the market. Depending on the area, it is legal in most regions to add hemp-derived CBD to wellness and functional drinks as long as the product contains less than 0.3 percent of THC. Nevertheless, the use of CBD alongside alcohol poses regulatory dilemma, thereby restricting the pace of CBD-enriched alcohol. In addition, the increasing consumer demand of healthier and functional beverages has greatly done wonders to the non-alcoholic CBD segment. A large number of consumers are in the market looking for alternatives to sugary soda drinks, caffeine stimulated, energy drinks as well as alcohol-best alternatives that do not have any negative consequences. Hemp-enriched sparkling water, teas, juices, and coffee products attract this health-conscious group due to a supposedly healthy advantage and include feelings of relaxation and an absence of anxiety, stress, and a preference to sleep at night. It is also more available in conventional retail outlets such as grocery stores, convenience stores, cafes, and wellness stores in non-alcoholic forms. They are able to reach a large market that covers working professionals, fitness enthusiasts among others as well as the older people. Moreover, non-alcoholic CBD is also gaining popularity because of new flavour combinations, enhanced water-soluble CBD technology, and cool-looking branding.

• With the launch of its collection of THC and CBD-infused beverages on October 1, Climbing Kites has formally entered the Georgia beverage industry.  Senate Bill 494, which gives the Georgia Department of Agriculture the authority to impose new rules on certain items, was passed after this premiere.  The law is the first step towards a regulatory framework that will influence how distributors, retailers, suppliers, and customers operate across the state.  According to a press release, all Climbing Kites sparkling waters contain full spectrum CBD and Delta-9 THC that are 100% organically sourced.  With differing amounts of THC and CBD, the brand's current flavours include Orange Mango, Pineapple Passionfruit, Peach Prickly Pear, and Mixed Berry.

Distribution channel Segment Analysis

The distribution channel segment is divided into offline retail and online retail. The offline retail segment dominated the market, with a market share of around 58% in 2024. Supermarkets, hypermarkets, health food stores, cafes, and convenience outlets are significant since they allow people to see and feel the CBD beverage. Among the consumers, particularly those who are first-timers in the purchase of the CBD products, direct access to a product to study its label, review its quality, and thus make the purchase a worthwhile. In addition, offline retail stores also tend to have knowledgeable personnel who can explain to the customers their inquiries and address their concerns concerning the safety, efficiency, and legality of CBD. This face-to-face association serves to establish brand trust, which in this market is so important in overcoming stigma and doubt. Regulation rules is also a factor; in many countries it is easier to sell CBD products in brick-and-mortar stores compared to online shops where cross-border issues enforcement rules and regulations surrounding e-commerce may complicate one sells the product. Also, face-to-face stores have greater propensity to make impulse buys. Strategic placement of CBD beverages will allow attracting those casual buyers, who are unlikely to seek the product on the Internet. All of these promotions, sample booths, and store branding also increase awareness levels and trial level.

• Leading international lifestyle and consumer packaged goods firm Tilray Brands, Inc. announced the growth of its range of Solei cannabis products.  Solei has introduced two more infused sparkling beverages with an emphasis on lesser THC and dominating CBD and CBG cannabinoids, which are now available in Blood Orange and Dark Cherry, in response to the good reception from their inaugural beverage launch last summer of 2023.  Targeting the support of rest and recuperation, the new Solei Extra Strength Deep Tissue Stick has a delicious cinnamon aroma and a 1:1 THC to CBD ratio, making it ideal for active lives and on-the-go convenience.

Source Segment Analysis

The source segment is divided into hemp-derived CBD and marijuana-derived CBD. The hemp-derived CBD segment dominated the market, with a market share of around 66% in 2024. The key reason why hemp-derived CBD has taken over the CBD-infused drinks market in the world is its positive legal stance, safety rating, and increased receptivity among consumers in general. This level of regulation has enticed the beverage industry producers to embrace the use of hemp in CBD since they would find it easy to comply and distribute it to mainstream retailers without the legal burden of marijuana-based products. As a consumer would see it, the hemp-derived CBD is more manageable to get and safer than other wellness products. It is of interest to those who want all the therapeutic effects of CBD, including stress alleviation, sleep, and relaxation without the intoxication effect of THC. This is what makes it non-intoxicating, which is vital to the marketing of CBD beverages as ordinary functional products of everyday life, instead of a niche, or recreational product. The hemp-derived CBD supply chain is also more advanced and more standardized resulting in heightened levels of consistency, traceability, and scalability. This facilitates integrity of products and facilitates production on a large scale to satisfy the increasing demand of consumers. CBD derived out of hemp, is also assimilated more easily into diverse forms of beverages, owing to the increase of technologies in water-soluble form and nano-emulsification processes.

• Wana Brands, a manufacturer of cannabis edibles, has signed a contract that will see its range of THC-infused beverages made from hemp sold at Total Wine & More stores in nine states nationwide. A news release from the booze retail behemoth states that it will carry three flavours of 12-ounce cans of Wana Beverages:  Five milligrams of CBD, five milligrams of THC, and five milligrams of CBD make up the Wana Lemonade Balance Blend. Ten milligrams of CBG, ten milligrams of CBD, and ten milligrams of THC make up the Wana Strawberry Lemonade Balance Blend. Five milligrams of CBG, five milligrams of CBD, and five milligrams of THC make up the Wana Raspberry Tea Relax Blend.

Some of the Key Market Players

• Aurora Cannabis Inc.
• Cannabis Sativa, Inc.
• Canopy Growth Corporation
• CBD Living
• GT's Living Foods
• Lagunitas Brewing Company
• Molson Coors Beverage Company
• New Age Beverages Corporation
• Recess
• The Alkaline Water Company Inc.
• Tilray Brands, Inc.
• VYBES

Report Description