Cannabis Drinks Report – Cannabis News, Lifestyle

A new report on the North America Cannabis Beverage Market Study is available. Cannabis beverages are a new category in the expanding cannabis industry. Because THC is fat-soluble, many legacy markets lacked a suitable cannabis beverage. But now, thanks to consumer demand, cannabis drinks are becoming increasingly popular. Because alcoholic beverages have been popular with adults for centuries, cannabis beverages can often serve as a gateway for consumers looking to ditch the toxins and embrace the natural.

Canada vs USA

Cannabis beverages were introduced in Canada in January 2020. By the end of the year, beverages accounted for just 1.8% of the total cannabis market share. However, growth has accelerated over the past two years. Headset cannabis beverage market study data reports 2.1% of total cannabis market share by the end of 2021. Headset receives its data from participating cannabis retailers through their point-of-sale systems.

Drinks in the legal states have been slower but more consistent over the past two years. As of January 2020, beverages accounted for 0.9% of the total cannabis market, reaching 1.1% by January 2022. The quantity and variety of cannabis beverages has grown faster in California than in any other US market. There are over 500 different cannabis beverages in California, nearly doubling last year.

Different types of drinks

The data seems to indicate that Canadians and Americans prefer different types of cannabis beverages. The most popular US beverages were drops, mixes, elixirs and syrups, accounting for 27.7% of total beverage sales. Carbonated beverages accounted for nearly 26% of total beverage sales over the same period. Iced tea, lemonade and fruit drinks accounted for 22.3%.

Unlike the United States, drops, mixes, elixirs and syrups accounted for just 4.7% of total beverage sales in Canada. In Canada, carbonated beverages are by far the most popular, accounting for 51.5% of cannabis beverage sales. Canadians also favor water-based cannabis beverages, which account for 20.3% of sales, compared to 8.8% of sales in the United States.

Product offering growth in Canada is similar to the trend in California. Various cannabis beverages have exploded in the market leading to accelerated growth of the market. Alberta, for example, has nearly 110 different beverage products, the most of any province. Cannabis beverages proved more popular in the second half of the year. Sales pick up around October, possibly due to falling temperatures and a general reluctance to go outside and smoke.

Sale of cannabis beverages

As the cannabis beverage market found its equilibrium, prices in Canada quickly fell 146%. As of July 2020, the average price of cannabis beverages in Canada has remained stable at around $6 per product. In the USA, too, prices have steadily fallen as a result of market launches and the introduction of new products.

However, the prices do not reflect the full story. In Canada, THC concentration limits are capped at 10mg per product. The US market differs by state, and in places like California the legacy market has an already established beverage industry with some products containing up to 100mg of THC.

Because of this, Canadian sales tend to be much higher. 57.4% of cannabis beverages sold in Canada in 2021 contained less than 5 mg THC. The remaining 42.2% of sales come from products containing 10 mg of THC. In contrast, only 0.4% of cannabis beverage sales in the US contain products with THC levels between 5 mg and 10 mg. More than half of the cannabis beverages sold in the US in 2021 contained 100mg of THC. There is also much more variation in pack sizes, unlike in Canada where there is a standardized pack size.

footnote(s)

https://www.headset.io/industry-reports/cannabis-beverages-a-look-at-category-trends-performance