Cannabis-based Alcoholic Beverage Market by Product and Geography - Forecast and Analysis 2021-2025

The cannabis-based alcoholic beverages market share is expected to increase by USD 155.28 million from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 18.53%.

The market research report provides valuable insights into the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by type (cannabis-infused beers, cannabis-infused spirits, and cannabis-infused wines) and geography (North America, Europe, APAC, South America, and MEA). 

The cannabis-based alcoholic beverages market report offers information on several market vendors, including Anheuser-Busch InBev, California Dreamin', CannaVines, Dutch Windmill Spirits BV, Heineken NV, Klosterbrauerei Weißenohe GmbH & Co.KG, MJ Wines LLC, NABC, Inc., Rebel Coast Winery, and Winabis, Wine & Cannabis among others.

Anheuser Busch InBev SA - The company is publicly held and headquartered in Belgium. It is a global company generating USD 54,304 million in revenues and has around 169,000 employees. Its revenue from the global alcoholic beverages market contributes to its overall revenues along with its other offerings, but it is not a key revenue stream for the company. 

What will the Cannabis-based Alcoholic Beverages Market Size be During the Forecast Period?

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Parent Market Analysis

Technavio categorizes the global cannabis-based alcoholic beverages market as a part of the global brewers market. Our research report extensively covers external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.

Cannabis-based Alcoholic Beverages Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post-COVID-19 era. The advanced techniques used in the cultivation of cannabis are notably driving the market growth, although factors such as distribution challenges in the cannabis sector may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. 

Key Cannabis-based Alcoholic Beverages Market Driver

Advanced techniques used in the cultivation of cannabis are a major factor influencing the market growth. The advent of new processes in cannabis cultivation is helping the cannabis industry grow, as these processes not only help in improving the quality but also in increasing the production level. Cannabis cultivation is undertaken in fully-equipped laboratories with facilities like sanitized chambers and a controlled environment. Advanced techniques such as Screen of Green (SCROG) and Sea of Green (SOG) have significantly improved the production level. These techniques use a nutrient-laden solution to produce cannabis, which is rich in THC. The quality of cannabis-based alcoholic beverages has also improved with the use of these techniques, which in turn will result in an increase in the revenue generated in the global market. Therefore, the cultivation of cannabis with the help of advanced techniques is expected to improve the yield and meet the growing demand for cannabis-based alcoholic beverages during the forecast period.

Key Cannabis-based Alcoholic Beverages Market Trend

The growing prominence of online retailing is another factor influencing the market growth. The growing popularity of online retailing has enabled vendors to improve their profit margins. The number of online transactions and the average amount of money spent online per transaction are increasing worldwide. Factors such as the "buy it now" mindset of users and an increase in the number of internet users are contributing toward the growth of this retail channel. The rising number of online shoppers and customers worldwide will further lead to high growth in sales of cannabis-based alcoholic beverages. Customers prefer online shopping and pay for their orders using debit or credit cards, which helps them in avoiding time-consuming journeys and billing queues. Online shopping portals have also incorporated enhanced security features for convenient customer service and efficient online payment systems, along with customer-friendly website designs that offer enhanced product visibility. Therefore, such trends are encouraging several manufacturers to focus on the internet-savvy customer segment and explore the new online retail format. This mode of business will help vendors in saving costs related to overheads and operations, which are lower in the online retail format in comparison to the physical store format.

Key Cannabis-based Alcoholic Beverages Market Challenge

Distribution challenges are a major hindrance to market growth. Retail stores like supermarkets and large chains of convenience stores have become important distribution modes for the vendors of cannabis-based alcoholic beverages. However, this presents some serious challenges for manufacturers, which are the following: Pressure on manufacturers regarding the prices and margins of the product as retail stores operate at a lower profit margin. Rising demands from retailers to manufacturers for frequent and small product deliveries to reduce the cost of warehouses.Increasing expectations from retailers for manufacturers to come up with innovative merchandising units like movable shelves that can be rolled when fully stocked, to reduce the replenishment cost of the store.The growing eagerness of retailers to avoid the decline in revenues resulting from the gaps in inventory by making the order fulfilment rate a key factor in developing a relationship with the brewer. This means that the retailer will not hesitate to go to others if a manufacturer is not able to supply a sufficient amount of goods for promotional initiatives and peak demand points. Channel shifts by consumers have also forced manufacturers to develop new skills in category management. Shoppers have shown more inclination toward convenience stores, which has forced manufacturers to find a suitable balance between price and volume.

This cannabis-based alcoholic beverages market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.

Cannabis-based Alcoholic Beverages Market Value Chain Analysis

Our In-house experts produce extensive information on the value chain and parent market of the cannabis-based alcoholic beverages market, which vendors can leverage to gain a competitive advantage during the forecast period. The Value Chain information provides an end-to-end understanding of product insight and profit and also optimization and evaluation of business strategies. The players across the value chain include selective data and analysis from entire research findings as per the scope of the report. 

Which are the Key Regions for the Cannabis-based Alcoholic Beverages Market?

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51% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for the cannabis-based alcoholic beverages market in North America. Market growth in this region will be slower than the growth of the market in regions.

Factors such as the increasing number of new product launches and collaborations between major vendors in the alcoholic beverages sector will facilitate the market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Type Segments in the Cannabis-based Alcoholic Beverages Market?

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The cannabis-based alcoholic beverages market share growth by the cannabis-infused beers segment will be significant during the forecast period. The cannabis-infused beers market segment has been witnessing multiple mergers and acquisitions over the last few years. Since the legalization of marijuana in Canada, Uruguay, and some other US states, the trend of using cannabis as an ingredient in the brewing process has been popular. This segment had maximum sales and revenue in the past few years and is expected to continue to dominate the market during the forecast period. However, in terms of volume, the market is expected to register a decline in growth rate during the forecast period. Thus, most beer companies are focusing on research and development aspects by developing new variants.

This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on the post-COVID-19 impact on each segment. 

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What are the Key Data Covered in this Cannabis-based Alcoholic Beverages Market Report?

• CAGR of the market during the forecast period 2020-2024
• Detailed information on factors that will drive market growth during the next five years
• Precise estimation of the cannabis-based alcoholic beverages market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behaviour
• The growth of the cannabis-based alcoholic beverages industry across North America, Europe, APAC, South America, MEA, North America, Europe, APAC, South America, and MEA
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of cannabis-based alcoholic beverages market vendors

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