CBD-infused beverage sales to skyrocket

CBD-infused beverages have been slow to enter the market, with only a limited number of brands, including Trip and GoodRays available for purchase. As a result, sector growth has been muted and consumer interest low.

Until now.

Currently valued at $1.16bn globally, the sector is projected to grow at a CAGR of 19.2% over the next five years (Grand View Research). This beats current consumer favourite kombucha, which is growing at a CAGR of 15.6%.

“The category has exploded,” says Eoin Keenan, founder and CEO of CBD beverage brand, GoodRays. “In December, the CBD drinks market is projected to overtake Kombucha, a category which has been growing superbly in its own right for nearly two decades.”

And Europe is witnessing particularly strong growth.

“In Europe, the CBD market is expanding rapidly, driven by growing consumer awareness and acceptance of CBD products,” says an analyst for Statista.

What is CBD?Cannabidiol (CBD) is a chemical in the Cannabis sativa plant, also known as cannabis or hemp.

Why are CBD-infused beverages becoming so popular?“The projected market growth is attributed to the increasing demand for cannabis-based wellness drinks and beverages,” says a spokesperson for Grand View Research.

This is combined with regulatory changes, making CBD more accessible to consumers across the globe, particularly in Europe.

“Our understanding is that EFSA is expected to fully market authorise CBD in the EU by next Summer,” says GoodRays’ Keenan. “And with the UK set to fully approve CBD for use in food and beverage in Summer 2025, it helps to set the precedent for further global growth of the category.”

And brands are enthusiastic about the potential for CBD-infused products.

“It’s going to be a really exciting period for the category,” says GoodRays’ Keenan.

And not only is this projected to boost CBD-infused product sales, it’s also expected to boost the beverage industry overall.

“Growing product portfolio based on cannabis as a key ingredient, and ease of accessibility are some of the key growth drivers for this industry,” says Grand View Research.

CBD is a chemical in the Cannabis sativa plant. (Image: Getty/Instants)What are the benefits of CBD?CBD is believed to provide a range of health and wellness benefits, including reducing anxiety, aiding physical recovery, reducing inflammation and pain, and increasing sleep quality.

However, it has also been associated with negative health impacts, including dry mouth, diarrhoea, reduced appetite, and drowsiness and fatigue.

Furthermore, concerns have been raised over the purity of CBD in beverage products.

“A cause for concern is the unreliability of the purity and dosage of CBD in products,” says Dr Brent A Bauer of the Mayo Clinic. “A recent study of 84 CBD products bought online showed that more than a quarter of the products contained less CBD than labeled. In addition, THC was found in 18 products.”

What is THC?Tetrahydrocannabinol (THC) is a cannabinoid found in cannabis. It is the principal psychoactive constituent of cannabis and one of at least 113 total cannabinoids identified on the plant.

CBD-infused sports bars could become a reality as the food industry benefits from regulatory changes. (Image: Getty/Obradovic)What NPD opportunities does this create for the beverage industry?Regulatory approvals, combined with increased consumer interest is likely to lead to a sharp rise in CBD-infused new product development, across Europe.

So, what should beverage manufacturers be focussing their attention on?

“Product features such as low sugar content and the required amount of cannabis content,” are high on the priority list for consumers,” says Grand View Research.

Furthermore, the sector is expecting to see a rise in CBD products developed to target specific health issues, such as insomnia or anxiety.

“Brands will need to adapt to consumer preferences and keep delivering high quality products that tap into specific CBD need-states,” says GoodRays’ Keenan.

Consumers want their products to work harder, with multiple benefits in a serving

Eoin Keenan, GoodRaysHaving said that, there is also a growing market for drinks which cover a multitude of needs.

“The ‘one-stop shop’ idea has been growing too,” says GoodRays’ Keenan. “Consumers want their products to work harder, with multiple benefits in a serving.”

And consumer understanding of the benefits of CBD are growing, leading to specific requirements with regards to dosage.

“Clinical studies show that doses of 25-30mg have a positive effect on sleep and stress, however, there is no human-based trial evidence of the effects of lower CBD doses and consumers are trading up as a result,” says GoodRays’ Keenan.

But what about foods infused with CBD oil? Will the food industry tap into the growing consumer interest?

The shift in regulations means we’re almost certain to see a flurry of new product development in CBD-infused foods. And while CBD-infused chocolates and sweets are already on the market, health and wellness food brands are yet to tap into the growing opportunities.

CBD has been associated with a range of health benefits, including reduced anxiety, improved physical recovery and reduced inflammation. (Image: Getty/Aja Koska)