Cannabis Beverages Report – Cannabis News, Lifestyle
A new report on North America cannabis beverages market study is available. Cannabis Beverages are a novel category in the expanding cannabis industry. Since THC is fat-soluble, a proper cannabis drink has been lacking in many legacy markets. But now, thanks to consumer demand, cannabis beverages are becoming more popular. Since alcoholic beverages have been popular among adults for centuries, cannabis drinks can often serve as an entryway for consumers looking to ditch the toxins and embrace the natural.
Canada vs. USA
In Canada, cannabis beverages were introduced in January 2020. By year’s end, beverages made up only 1.8% of the total cannabis market share. However, growth has increased over the last two years. Cannabis beverages market study data from Headset reports 2.1% of the total cannabis market share by the end of 2021. Headset gets its data from participating cannabis retailers via their point-of-sale systems.
Beverages in the legal States have been slower but more consistent over the last two years. In January 2020, beverages made up 0.9% of the total cannabis market and reached 1.1% by January 2022. The amount and variety of cannabis beverages have grown faster in California than in any other US market. There are over 500 distinct cannabis beverages in California, nearly double the amount from the year before.
Different Kinds of Beverages
Data seems to show that Canadians and Americans prefer different types of cannabis beverages. The most popular US drinks were drops, mixes, elixirs, and syrups which made up 27.7% of total beverage sales. Carbonated beverages came in at just under 26% of total beverage sales during the same time period. Iced Tea, Lemonade and Fruit beverages accounted for 22.3%.
In contrast to the United States, drops, mixes, elixirs, and syrups made up only 4.7% of total beverage sales in Canada. In Canada, carbonated beverages are by far the most popular, making up 51.5% of cannabis beverage sales. Canadians also prefer water-based cannabis beverages, which account for 20.3% of sales compared to 8.8% of sales in the United States.
The growth of product offerings in Canada is similar to the trend in California. Distinct cannabis beverages have exploded onto the market, creating accelerated growth in the market. Alberta, for example, has just under 110 distinct beverage products, the most of all provinces. Cannabis beverages proved to be more popular in the latter half of the year. Sales pick up around October, possibly due to dropping temperatures and a general reluctance to go outside and smoke.
Cannabis Beverage Sales
As the cannabis beverage market found its equilibrium, prices in Canada quickly dropped by 146%. Since July 2020, the average price for cannabis beverages in Canada has remained stable at around $6 per product. Prices in the US have also been consistently decreasing as markets and new products are introduced.
However, prices don’t reflect the entire story. In Canada, THC potency limits are capped at 10mg per product. The US market differs depending on the State, and in places like California, the legacy market has an already established beverage industry with some products containing as much as 100mg of THC.
It is for this reason that Canadian sales tend to be much higher. 57.4% of cannabis beverages sold in Canada during 2021 contained less than 5mg of THC. The remaining 42.2% of sales can be attributed to products that contain 10mg of THC. In contrast, only 0.4% of cannabis beverage sales in the US contain products ranging between 5mg and 10mg of THC. Over half of cannabis beverage products sold in the US during 2021 contained 100mg of THC. There is also far more variation in package sizes, unlike in Canada where there is a standardized package size.