Cannabis Beverages Market
The market for Cannabis Beverages was estimated at $1.8 billion in 2025; it is anticipated to increase to $4.6 billion by 2030, with projections indicating growth to around $11.8 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Cannabis Beverages Market Outlook
Revenue, 2025
$1.8B
Forecast, 2035
$11.8B
CAGR, 2026 - 2035
20.5%
The Cannabis Beverages industry revenue is expected to be around $1.8 billion in 2026 and expected to showcase growth with 20.5% CAGR between 2026 and 2035. This anticipated expansion underscores how Cannabis Beverages have evolved into a strategically important segment within the broader legal cannabis and functional beverages markets, supported by rising consumer demand for smoke-free, dosage-controlled consumption experiences, a strong shift toward non-alcoholic cannabis beverages that already generated about $1.3 billion in sales in 2025, and the rapid mainstreaming of distribution as Others and Supermarkets & Hypermarkets together account for 58.2% of total channel share, reinforcing the category’s ongoing relevance as a premium, wellness-oriented alternative to traditional alcoholic drinks and inhalable products.
Cannabis Beverages encompass THC beverages and CBD-infused drinks offered mainly in non-alcoholic formats such as sparkling waters, teas, coffees, tonics, and wellness drinks, characterized by precise dosing, discreet consumption, ready-to-drink formats, and increasingly rapid onset enabled by advanced nano-emulsion technology; their major applications span recreational relaxation, social occasions as an alcohol substitute, and health-focused use cases such as stress reduction, sleep support, and recovery, while recent trends driving demand include microdosed formulations for controlled experiences, clean-label and low-sugar recipes, the integration of functional ingredients, and the expansion of cannabis-infused beverages into mainstream retail and foodservice environments.
Market Key Insights
The Cannabis Beverages market is projected to grow from $1.8 billion in 2025 to $11.8 billion in 2035. This represents a CAGR of 20.5%, reflecting rising demand across Recreational Use, Therapeutic and Wellness Use, and Physical Fitness and Sports Recovery.
Keef Brands, CANN Social Tonics, and FABLE are among the leading players in this market, shaping its competitive landscape.
U.S. and Canada are the top markets within the Cannabis Beverages market and are expected to observe the growth CAGR of 19.7% to 28.7% between 2025 and 2030.
Emerging markets including Mexico, South Korea and Colombia are expected to observe highest growth with CAGR ranging between 15.4% to 21.3%.
Transition like Emphasis on Health and Wellness is expected to add $759 million to the Cannabis Beverages market growth by 2030.
The Cannabis Beverages market is set to add $10.0 billion between 2025 and 2035, with manufacturer targeting key segments projected to gain a larger market share.
With
increase in legalization efforts, and
Health and Wellness Trend, Cannabis Beverages market to expand 545% between 2025 and 2035.
Opportunities in the Cannabis Beverages
Non-alcoholic Cannabis Beverages are emerging as the preferred social drink for health-conscious millennials seeking alcohol-free relaxation and precise dosing. This segment of non-alcoholic cannabis drinks is also forecast to expand fastest, rising globally from about $1.30 billion in 2025 to $3.41 billion by 2030 at a 21.2% CAGR. Untapped opportunities include workplace-acceptable formats, low-sugar CBD drinks, and ready-to-drink formulations for fitness recovery and post-work occasions. Brands focusing on premiumization and transparent labeling in North American urban centers are expected to capture disproportionate growth.
Growth Opportunities in North America and Europe
In North America, Cannabis Beverages are increasingly shifting from niche dispensary items to a mainstream functional beverages segment, with Others (licensed dispensaries, cannabis lounges, and specialty cannabis retailers) remaining the dominant Distribution Channel for THC drinks, while supermarkets & hypermarkets and convenience stores gain relevance primarily for CBD-infused beverages and hemp beverages as regulations evolve state-by-state and provincially. Top regional opportunities include portfolio expansion into micro-dosed THC drinks positioned as alcohol alternatives, ready-to-drink cannabis formats tailored for on-the-go consumption, and premiumization of CBD-infused beverages that align with health and wellness trends and adult-use legalization momentum, supported by co-branding with established beverage manufacturers. Competition is intensifying as legacy cannabis brands, emerging THC drinks specialists, and diversified beverage companies converge, with Others channels favouring brands that can execute strong in-store education and dosage clarity, while convenience stores favour lower-priced, impulse-ready SKUs and supermarkets reward scaled supply, consistent quality, and compliant, wellness-oriented positioning. Key drivers include regulatory normalization at the state and provincial level, consumer migration from traditional alcohol to low-calorie and low-sugar Cannabis Beverages, growth of e-commerce growth and click-and-collect models for hemp beverages, and the integration of data-driven category management within major retail chains, which collectively support investment in brand building, cold-chain distribution, and format innovation targeted to each priority Distribution Channel.
In Europe, Cannabis Beverages are currently led by CBD-infused beverages and hemp beverages with a wellness and relaxation positioning, where supermarkets & hypermarkets and online retail are emerging as the most relevant Distribution Channels for scale, while Others such as pharmacies, health-food stores, and specialist wellness retailers provide a high-trust environment for early-stage THC drinks pilots under tightly controlled national schemes. Top opportunities centre on first-mover advantage in compliant, low-THC or CBD-focused ready-to-drink cannabis formats that complement existing functional beverages, leveraging e-commerce growth for cross-border CBD sales, and carefully staged entry into adult-use or quasi-adult-use THC drinks segments as select markets liberalize. Competition is driven by regional CBD brands, functional beverage incumbents, and a limited number of imported Cannabis Beverages, with supermarkets favouring safe, wellness-aligned SKUs backed by robust regulatory documentation, online retail enabling rapid testing of novel flavours and formats, and Others channels offering premiumization potential through higher-margin, pharmacist- or specialist-recommended products. Principal drivers include gradual regulatory harmonization around hemp and CBD, strong health and wellness trends combined with rising demand for alcohol-free socialization, retailer interest in differentiated high-margin categories, and growing consumer familiarity with cannabis-derived ingredients, which together create a strategic window for investment in regulatory expertise, partnerships with major grocers and e-commerce platforms, and targeted education to build trust in Cannabis Beverages across priority Distribution Channels.
Market Dynamics and Supply Chain
01
Driver: Expanding Legalization Frameworks Coupled with Rising Demand for Alternative Functional Beverages
A major driver for cannabis beverages is also the accelerating pace of cannabis legalization across U.S. states and international markets, tightly paired with the booming consumer preference for alternative functional beverages. As more regions update regulatory frameworks to permit adult-use cannabis, market entry barriers are also lowering and enabling licensed producers to launch THC- and CBD-infused drinks. This expansion has also stimulated product innovation and broader retail distribution through dispensaries, specialty shops and regulated delivery channels, directly increasing consumer access. Separately, health- and wellness-minded consumers are also shifting away from sugary sodas and traditional alcohol toward functional beverages that offer mood enhancement, stress relief or relaxation benefits. Cannabis beverages, especially those enriched with CBD or balanced THC levels, fit squarely into this trend by delivering targeted functional also experiences without smoking or excessive calories. These combined forces are also encouraging beverage formulators to invest in flavor development, microdosing technologies and stable infusion methods that maintain cannabinoid efficacy and sensory appeal, further positioning cannabis drinks within mainstream beverage portfolios and driving category growth.
Another key driver is also the advancement in cannabinoid infusion technologies and bioavailability enhancement, which is also improving cannabis beverage functionality and consumer experience. Traditional challenges with dispersing hydrophobic cannabinoids like THC and CBD in water-based beverages have also been addressed through emulsification, nano-encapsulation and solubility technologies that ensure consistent dosing, faster onset and better flavor integration. These technological improvements make cannabis drinks more attractive to both recreational users and wellness consumers seeking predictable effects and enjoyable taste profiles. Enhanced bioavailability also supports new formulation opportunities in fitness recovery and therapeutic segments, allowing brands to tailor products with optimized absorption and targeted benefits, reinforcing consumer confidence and adoption.
02
Restraint: Regulatory Complexity and Inconsistent Legal Frameworks Across Regions Limiting Market Expansion
One of the most significant restraints for cannabis beverages is regulatory complexity and inconsistent legal frameworks across regions, which creates barriers to entry, distribution and consumer access. Even where adult‑use cannabis is legal, rules around licensing, labeling, potency limits and retail distribution vary widely. For example, some U.S. states prohibit cannabis beverages with certain THC levels or restrict sales to licensed dispensaries only, reducing availability compared with traditional beverages. This fragmentation forces producers to create multiple formulations and compliance strategies, raising costs and delaying launches. The result is slower market growth, reduced revenue opportunities, and cautious investor interest compared with more harmonized markets like alcohol or CBD‑only segments.
03
Opportunity: THC Cannabis Beverages replacing beer and wine in legal adult-use markets and Functional CBD Cannabis Beverages for sleep, stress, and wellness consumers worldwide
Alcoholic Cannabis Beverages are poised to disrupt traditional alcoholic drinks as THC-infused beverages enter bars, music venues, and social events in legal adult-use markets. Globally, alcoholic Cannabis Beverages are projected to increase from around $0.53 billion in 2025 to $1.24 billion by 2030, reflecting an 18.69% CAGR. Growth will be strongest in sessionable, microdosed formats positioned as safer, lower-calorie alternatives to spirits and beer. Strategic collaborations between breweries, cannabis processors, and hospitality operators will accelerate on-premise distribution, particularly in North America and early-liberalizing European countries.
Functional Cannabis Beverages centered on CBD and minor cannabinoids address growing demand for natural solutions to anxiety, sleep disruption, and everyday stress. Non-alcoholic CBD drinks formulated as functional wellness drinks can access mainstream retail, pharmacies, and e-commerce across multiple regions. Technological innovations such as fast-acting nano-emulsions improve onset time and dosage consistency, enhancing consumer trust. Brands partnering with nutraceutical companies, wellness influencers, and telehealth platforms can target on-the-go consumption moments, with non-alcoholic, low-THC formulations expected to dominate volume and value growth within this opportunity.
04
Challenge: High Production Costs and Consumer Price Sensitivity Reducing Adoption Rates
Another major restraint is high production costs and consumer price sensitivity, which dampen demand for cannabis beverages. Infusion technology, quality cannabinoid extraction and compliance‑related testing add significant expense compared with conventional drinks. These costs are often passed on to consumers, making cannabis beverages pricier than analogous functional or recreational alternatives. In markets with tight consumer budgets or strong competition from lower‑cost CBD tinctures and edibles, price becomes a deterrent. For example, higher retail prices in dispensaries can discourage repeat purchases or push consumers toward illicit or unregulated options, thereby impacting revenue and slowing formal market expansion.
Supply Chain Landscape
1
Infused Drinks Sourcing
FABLEARTET LLC
2
CBD Beverages Formulation
Keef BrandsARTET LLC
3
Cannabis Beverages Manufacturing
Keef BrandsCANN Social TonicsMary Jones
4
THC Drinks Applications
adult-use retailmedical dispensariesfunctional beverages
1
Infused Drinks Sourcing
FABLEARTET LLC
2
CBD Beverages Formulation
Keef BrandsARTET LLC
3
Cannabis Beverages Manufacturing
Keef BrandsCANN Social TonicsMary Jones
4
THC Drinks Applications
adult-use retailmedical dispensariesfunctional beverages
Use Cases of Cannabis Beverages in Recreational Use & Physical Fitness
Recreational Use : Cannabis beverages designed for recreational use typically contain controlled doses of THC formulated to deliver mild psychoactive effects in social settings without smoking. Products such as THC-infused seltzers, sparkling waters, sodas and mocktails provide a familiar, drinkable alternative to alcohol for adults seeking relaxation or a gentle buzz. Established beverage innovators like Lagunitas (Hi-Fi Hops) and Keef Brands leverage craft flavors and approachable formats to attract recreational consumers, blending recreational enjoyment with novelty and convenience. These offerings are often prized for easy dosing and social appeal in legalized markets, making them a compelling alternative in leisure and nightlife consumption patterns.
Therapeutic and Wellness Use : In the therapeutic and wellness segment, cannabis beverages infused with cannabidiol are favored for their non-psychoactive, calming properties. CBD-dominant teas, juices, functional shots, and infused sparkling waters are marketed to health-oriented consumers seeking stress relief, improved sleep, or emotional balance without intoxication. Brands like Cann Social Tonics and specialized wellness drink producers emphasize natural ingredients, microdosing and clean-label benefits, aligning with growing consumer demand for functional beverages that support relaxation, sleep quality, and general wellness. These products are often positioned as part of daily self-care routines and non-alcohol alternatives.
Physical Fitness and Sports Recovery : Cannabis beverages are increasingly explored in physical fitness and sports recovery due to CBD’s potential anti-inflammatory and muscle relief benefits. Functional cannabis drinks, including CBD-infused sports beverages and post-workout teas or smoothies, aim to aid recovery, reduce soreness and support relaxation after exercise. Manufacturers are incorporating CBD with electrolytes or herbal recovery complexes to appeal to fitness enthusiasts and athletes looking for natural recovery solutions. These beverage formats resonate with active consumers who prefer plant-based, wellness-oriented products that complement physical performance and recovery routines.
Recent Developments
The cannabis beverages market is evolving rapidly with product innovation, legalization expansion, and stronger regulatory compliance shaping strategy. Brands are launching novel THC and CBD drink formats that emphasize microdosing, better bioavailability, and functional benefits like relaxation or recovery. A key trend is the convergence of wellness drinks and cannabis seltzers, appealing to health‑oriented consumers seeking alternatives to alcohol. This shift boosts demand for clean‑label, low‑calorie options while requiring investment in quality testing and labeling transparency to meet diverse legal standards.
June 2025 : Jones Soda sold all equity in its cannabis beverage subsidiaries, including the Mary Jones brand and related assets, for a total consideration of $3 million in cash and promissory notes, while retaining a multi‑year trademark licensing agreement for Mary Jones products. This strategic divestiture refocused operations on core soda and functional drinks while monetizing its cannabis beverage segment.
August 2024 : The Mary Jones THC beverage brand entered Michigan’s large legal cannabis market via a manufacturing and distribution partnership with Emerald Canning Partners, producing multiple THC‑infused soda SKUs and new cannabis shooters, thereby strengthening regional market presence and product reach.
Impact of Industry Transitions on the Cannabis Beverages Market
As a core segment of the Packaged & Processed F&B industry,
the Cannabis Beverages market develops in line with broader industry shifts.
Over recent years, transitions such as Emphasis on Health and Wellness and Stricter Regulations and Compliance have redefined priorities
across the Packaged & Processed F&B sector,
influencing how the Cannabis Beverages market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Emphasis on Health and Wellness
The accelerating shift toward health and wellness is transforming Cannabis Beverages from a niche recreational category into a mainstream functional wellness segment, projected to add approximately $759 million in incremental market growth by 2030. As consumers seek targeted benefits such as pain relief, anxiety reduction, and improved sleep, demand is rising for cannabis infused drinks that behave like sophisticated CBD beverages and THC beverages rather than traditional intoxicants. This is fuelling innovation in CBD infused water, THC infused tea, low-dose cannabis drinks, ready-to-drink cannabis beverages, and non-alcoholic cannabis beverages that deliver precise, reliable effects with clean-label positioning. Brands that align formulations, dosing, and branding with evidence-based wellness outcomes are positioned to capture premium pricing, expand distribution into health-oriented retail channels, and structurally redefine the growth trajectory of the global Cannabis Beverages market.
02
Stricter Regulations and Compliance
The cannabis beverages industry is experiencing a significant transition due to stricter regulations and compliance requirements imposed by governments worldwide as medical and recreational cannabis use expands. Regulatory measures include licensing for cultivation, strict labeling and packaging standards, THC/CBD content limits, and distribution restrictions. These rules impact product formulation, marketing, and retail availability, forcing producers to invest in testing, traceability, and compliance infrastructure. For example, beverage manufacturers in the U.S. must adapt formulations to meet state-specific THC limits, while Canadian producers comply with Health Canada’s packaging standards. This regulatory focus also drives partnerships with licensed suppliers and distributors, ensuring legal market entry and protecting consumer safety. The heightened compliance landscape increases operational costs but strengthens consumer trust, shaping the growth trajectory and strategic planning within the cannabis drinks sector.