Cannabis beverages market in Europe – general overwiew
Cannabis-based beverages is a rapidly growing part of the cannabis market in Europe. A Fortune Business Insights report predicts that the global market for cannabis-only alcoholic beverages will reach $2.8 billion by 2026. However, the European cannabis-based beverage market itself is still in its early stages. Significant growth is expected in the coming years. According to a report by Prohibition Partners, this market is expected to reach €1.5 billion by 2025, compared to just €22 million in 2020. The growing demand for cannabis products and changing attitudes towards their consumption influences the development. The market is still in its early stages but is growing rapidly. There are several key factors driving its growth.
What are the drivers of growth in cannabis beverage market?
One of the main drivers of this growth is the growing acceptance of cannabis and CBD products in Europe. As more and more countries legalize medical and/or recreational marijuana, consumers are also becoming more open-minded. Thanks to this, the market for hemp-based products, including beverages, is growing. You can read about the situation in each European country in our FAQs. In addition, people are becoming more and more interested in the methods of consumption of cannabis. This is why many are turning to cannabis-based beverages as a healthier and more socially acceptable alternative to smoking or vaping. When smoking or vaping, it can be difficult to accurately measure the amount of marijuana consumed, which can lead to overconsumption and unpleasant side effects. With cannabis-based beverages, consumers can precisely control the dose, making it easier for them to achieve their desired effects.The European hemp-based drinks market is also benefiting from the increasing availability of high-quality extracts. In recent years, there has been a significant increase in the number of companies producing high-quality hemp extracts, which are a key ingredient in many beverages. This has led to a wider range of products and improved quality, driving demand. There are many different types of cannabis-based beverages on the market, including beers, wines, and spirits. Two main compounds found in hemp which usually infuse the products are THC or CBD.
Cannabis beverages and regulatory
Despite the benefits of cannabis-based beverages, there are still some challenges. One of the main obstacles to growth is the complex regulatory environment. Cannabis is still illegal in many European countries. Even in countries where they are legal, there are often strict laws governing production, sale and use. In addition, the legal status of cannabis varies from country to country, which can make it difficult for companies to develop and market their products. Moreover, there are also significant cultural barriers to overcome. Many parts of Europe stigmatize cannabis use. For this reason, potential consumers may have doubts. However, people are becoming more and more interested in alternative methods of cannabis consumption. Attitudes towards them are also changing, so demand for these products is likely to increase. In addition, one of the biggest challenges is taste. Many of the early cannabis-based drinks received negative opinions for having a strong, unpleasant taste. However, with the development of the market, producers focused on improving the taste. This helped to improve the offer and increased the number of interested people.
Market prediction for cannabis beverages
Overall, the cannabis beverage market is expected to continue to grow in the coming years. With constant changes and improvements in flavor and formula, cannabis-based beverages are likely to become an increasingly important segment of the cannabis industry. Despite the described challenges, the European market is also prepared for significant growth in the coming years. With the growing acceptance of cannabis and CBD products, a growing variety of high-quality extracts and a wider range of products, the beverage market will continue to grow.