CBD Beverage Market
The future of the global cbd beverage market looks promising with opportunities in the online retail, supermarket, specialty store, and health store markets. The global cbd beverage market is expected to reach an estimated $101.6 billion by 2035 from $15.3 billion in 2027 with a CAGR of 26.6% from 2027 to 2035. The major drivers for this market are the increasing popularity of wellness beverages, the rising consumer interest in natural ingredients, and the growing legalization of cannabis in regions.
- Lucintel forecasts that, within the product type category, CBD infused water will remain the largest segment over the forecast period due to increased interest in low-sugar beverages and improvements in hydration.
- Within the distribution channel category, online retail will remain the largest segment over the forecast period due to more brand choices and easy D2C delivery.
- In terms of regions, North America will remain the largest region over the forecast period due to more favorable laws for hemp and rising interest in wellness drinks.
Emerging Trends in CBD Beverage Market
Between 2025 and 2027 CBD beverages are anticipated to enter the mainstream. Dosage, evidence, packaging and distribution strategies are currently being developed and perfected by CBD beverage companies. Nevertheless, regulatory frameworks governing the industry are expected to ease and allow for broader commercialization of CBD beverages.
- Functional Products: It is anticipated that other functional ingredients will be added to CBD beverages. Relaxation CBD beverages, for instance, are expected to gain traction in the near future.
- Standardization and Regulation: As long as federal laws in the U.S. continue to impede the regulatory framework governing the CBD industry, market participants will continue to invest in certificates of analysis and other similar compliance aids in order to satisfy the expectations of the E.U. and other more stringent regulatory environments.
- Premium CBD Beverages: Additionally, the CBD beverage industry is expected to experience a similar trend to that of the alcoholic beverages industry, whereby premium and more expensive CBD beverages are expected to enter and dominate the market.
- Supply Chain Diversification: Beverage producers have developed many supply and distribution channels by utilizing various local co-packers and hemp sources. In 2025, EU beverage producers created offerings utilizing EU compliant hemp, while North American producers focused on various domestic offerings. Through 2030, continued supply chain diversification will reduce risk and enhance speed of product launches.
- Alcohol Substitution: With the increasing preference of consumers to limit their alcohol consumption, including the adoption of CBD and other wellness-minded mocktails and sparkling waters, the market for alcohol substitutes is expanding. In 2024, the IWSR predicted low and no alcohol drinks would experience 7% category growth.
Leading companies will gain and retain market share through strong and reliable distribution channels. Due to the ever-evolving regulatory environment, gaining and maintaining consumer trust will hinge on strict compliance. Until recently, regulators eased limitations on the ingredients that could be utilized in beverages. Now that consumers have greater choices, trust will hinge on manufacturers' commitment to quality and integrity in both products and processes. The alcohol category will see the most disruption in the near term.
Recent Developments in the CBD Beverage Market
CBD beverage companies continue to enter the market and existing beverage companies began distributing CBD beverages in 2021. Regulations, the availability of raw ingredients, investment and the growth of the functional beverage market will determine the long-term success of CBD beverage companies from 2025 to 2027. Lucintel believes long-term success will depend on the abilities of a CBD beverage company to promote and distribute its products and the quality of the products offered.
- Regulatory Changes: The FDA stated in February 2025 that CBD can't be added to conventional food and beverages. As of this statement, CBD cannot be added to food and beverages even if the food and beverage products containing CBD are sold and marketed legally.
- Changes in Financial Market Investments: In March 2025, a publicly traded U.S. hemp beverage company stated that its hemp and CBD-infused beverages are sold at over 10,000 retail outlets. Most hemp and CBD beverage companies are small. Companies that have the capital can acquire, or merge with, established beverage companies.
- Changes in The Number of Retail Outlets: In January 2025, a CBD beverage company entered into an agreement to have its products sold in over 2,000 retail outlets. Distribution through retail outlets increases the opportunity for consumer product trial. Many retail outlets have strict policies regarding the types of products that they sell.
- Innovation in CBD Beverage Technology Has Focused on Water-soluble CBD: Reduced sugar formulations, and improved sensory attributes. In April 2025, one provider of water-dispersible CBD oil technology claimed 4x improved absorption compared to standard oil-based formulations. More cases like these should encourage the industry to use smaller CBD beverage servings. If the technology is validated, it could lead to products with smaller CBD serving sizes and more overt functional claims.
- Along with Hemp-derived CBD Functional Beverages: Larger beverage companies have explored functional beverage categories. In June 2025, one of the largest beverage companies launched a CBD-containing beverage (10 mg CBD/serving) in a limited-release, designed market analysis. More of these types of launch will likely occur until manufacturing capacity is allocated to the cbd beverage market.
Ultimately, the legal cannabis landscape will largely impact the cbd beverage market. The emphasis will likely be on supplier competitiveness. Banks and other traditional lending institutions will likely require distribution channels before investing, thereby encouraging more mergers.
Strategic Growth Opportunities in the CBD Beverage Market
The cbd beverage market is in a commercial transition. In this new environment, the potential for CBD beverages is reemerging with more stringent market rules, interest from consumers, and shifts in how retailers view the wellness market. We expect that from 2024 through 2026, more functional beverages will enter the market. During this time, we expect continued advancements in beverage industry technology and more functional beverages will be available. As channel restrictions ease, more products will become available. Lucintel anticipates that these market conditions will allow manufacturers to enhance their understanding of customers and improve their production economics.
- Functional Wellness Beverages: The potential market for CBD beverages will continue to evolve as consumers' interests and needs change. Wellness beverages can be created with other functional ingredients to promote hydration and sleep. We expect the global market potential for functional beverages will reach and exceed $200 billion by 2025.
- Pharmacist/Practitioner CBD Products: CBD beverages and other products can be created with specific ingredients to promote wellness. The FDA has not amended its rules to allow the sale of CBD in food and beverages. We expect market conditions will favor the introduction of CBD products that are supported by clinical and scientific data. These products can be positioned as wellness products.
- Various Channels in Hospitality and Travel: Airline, hotel and resort, and venue channels allow control over the environment, sampling, and selling. June 2025, Delta-9 THC limits in the U.S. continued to constrain the hemp-market, but the channels mentioned can develop and accelerate market penetration and acceptance. Staff training and age verification can alleviate concerns about illegitimate retail sales.
- Individualized Dosing: Individuals build product tolerance and require varying doses to achieve desired effects. Consumers can purchase products customized for individual needs through a subscription. Retention will improve with the adoption of product customization. Direct-to-Consumer beverage businesses of 2025 generated first-party customer data and built products to meet the needs of specific consumer segments.
- Packaging and Production: Packaging and distribution are separated. Use of local co-packing and Raw/Recycled materials can reduce the environmental impact of delivery. Recycled Aluminium beverage cans containing 70% post-consumer content were common in 2025.
In the coming years, various channels in the hospitality and travel industry will benefit from innovations in product design and distribution. Distributors who control their supply chains and regulate the cannabinoid content of their products will set the prices. The most successful companies will design products for specific cannabinoid consumption and differentiate their products based on defined consumption occasions.
CBD Beverage Market Drivers and Challenges
The CBD beverage industry is expected to grow due to changes in consumer tastes. The formulation and technology available to manufacture these drinks has improved and increased their accessibility. Although there are barriers to market entry, including price, legal and evidenced-based barriers, Lucintel has identified potential in this space.
The factors responsible for driving this market include:
- Interest in Wellness: The public's interest in wellness and related products has been growing. CBD and other cannabinoid products are associated with relaxation, stress management, and other similar wellness products. As a result, the use of CBD and other cannabinoids in functional beverages, especially by adults, is on the rise. In 2025, several beverage companies launched products containing CBD and other wellness ingredients. Over the next 3-5 years, functional beverages are expected to gain even more popularity as people become more health conscious. With improved labelling and greater transparency, the beverage industry will gain trust and be able to establish itself in the market. Due to improved product education and acceptance, especially of CBD and other cannabinoid products, by people over the age of 50, the industry has even more potential.
- Product Innovation: Leading industry players continue to advance solubility and stabilize cannabinoids through various dispersions and encapsulations, paving the way for higher-quality CBD-containing beverages that taste better and more closely resemble traditional beverages. The market will benefit from new product launches and diversified offerings in the short term. Products will also be better branded and labelled with more specific health benefits and advantages. Furthermore, the market will experience growth with the introduction of new formulations incorporating CBD with other complementary ingredients (e.g. botanicals, vitamins, and/or hydration aids).
- Distribution and Retail Channel Expansion: The market for CBD beverages has increased, and products are now available at cannabis-only dispensaries, some traditional retailers, and online. Products are also available in hotels and other hospitality establishments. The cbd beverage market is still small, but continued innovation and improved distribution will allow the market to flourish in the next few years. Companies must be able to efficiently manage age verifications and controls to gain and maintain a competitive edge in the market.
- Regulatory Clarity: More definitive rules concerning CBD derived from hemp, including uniform testing, labelling, and proposed serving sizes and product claims would allow manufacturers and retailers to better plan for the future. The U.S. Food and Drug Administration (FDA) has stated that it intends to continue evaluating a pathway for the use of CBD in human food and animal feed, and expects to provide further updates by February 2025. During this same time period, various jurisdictions were also reviewing standards for edible cannabinoid beverages, which shows that frameworks for regulating CBD beverages are under consideration and may likely be adopted in the future. In the next 3 to 5 years, a more consistent framework may positively impact the public's perception regarding the use of CBD beverages. Until then, manufacturers must contend with inconsistent and variable regulations which may impact business growth.
- Manufacturing: Continuous improvements in automated filling and packaging, in combination with greater supply and easier access to better raw ingredients, enables manufacturers to produce a higher quality, more consistent product and reduce costs. Promotion of greater sustainability in the beverage industry has also gained momentum. The use of lighter and more efficient packaging which reduces the use of energy and water during the manufacturing process has also gained industry focus. In addition, greater emphasis has also been placed on the development of beverage packaging which reduces the overall weight of the package and makes it more recyclable. These goals will help manufacturers better compete with conventional beverages, particularly in the functional drinks category. CBD stability may impact how far a company is able to integrate greater sustainability initiatives into beverage and packaging designs
- There is a lack of standardized rules and regulations. Companies in the CBD beverages industry face numerous obstacles due to differing rules. These rules may vary by country, state, or retail channel. As a result, CBD beverage companies may need to spend more money to launch their products in less markets compared to traditional beverages. They may also face barriers when trying to distribute their products to various retail outlets. U.S. and European CBD policy changes that began in 2025 demonstrated that each region established its own set of rules and regulations and standards. Between now and the next 5 years, the lack of uniform standards among different regulatory bodies may negatively impact the CBD industry by decreasing the number of product offerings and further restricting investment capital.
The challenges facing this market include:
- Trust of CBD Products: In order for the CBD industry to thrive, research shows that consumers need to be fully educated on the potential benefits and risks of using CBD products. However, industry studies have shown that a significant number of consumers do not trust the CBD industry. There are many factors that have negatively impacted consumer confidence including: false product claims, product variability, product consistency, and product purity. In 2025, many CBD companies continued to fund research on the accuracy of CBD content and purity of CBD products in order to build consumer confidence. Based on research, many consumers wanted assurances that CBD companies supported their product claims and removed product claims that could not be scientifically validated.
- Expenses and Competition: The cost of producing CBD-infused drinks is higher due to the higher costs of other cannabinoids, specialized and more complex formulations, product testing, packaging, and smaller production runs when compared to traditional beverages. There are a number of other beverage options, as well as supplements and cannabis products, with which CBD beverages compete. Established energy drinks, for example, may have greater brand recognition. CBD beverages may, however, gain a competitive edge due to differentiation by CBD, other cannabinoids, and/or other functional ingredients.
Innovation and the introduction of CBD beverages focused on convenience will help the market gain traction. In order to gain and retain customers, companies will also need to engage in best business practices, including fair and reasonable claims, and use packaging that minimizes their environmental impact. Improving manufacturing practices will also help companies better control their operations and meet customer needs. During the next several years, industry participants will gain experience in best practices for manufacturing and creating trusted brands. Long-term growth of the cbd beverage market will depend on ongoing changes in regulations that promote and protect customer interests.
List of CBD Beverage Market Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies cbd beverage market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the cbd beverage market companies profiled in this report include-
- Charlotte's Web
- Canopy Growth
- Aurora Cannabis
- Trulieve
- Cresco Labs
- Green Thumb Industries
- Hexo Corp
CBD Beverage Market by Segment
The study includes a forecast for the global cbd beverage market by product type, formulation, distribution channel, end use, and region.
CBD Beverage Market by Product Type [Value ($B) from 2019 to 2035]:
- CBD Infused Water
- CBD Tea
- CBD Coffee
- CBD Soft Drinks
- CBD Alcoholic Beverages
CBD Beverage Market by Formulation [Value ($B) from 2019 to 2035]:
- Carbonated
- Non-Carbonated
- Powdered
- Ready-To-Drink
CBD Beverage Market by Distribution Channel [Value ($B) from 2019 to 2035]:
- Online Retail
- Supermarkets
- Specialty Stores
- Health Stores
CBD Beverage Market by End Use [Value ($B) from 2019 to 2035]:
- Millennials
- Generation X
- Baby Boomers
CBD Beverage Market by Region [Value ($B) from 2019 to 2035]:
- North America
- Europe
- Asia Pacific
- The Rest of the World
Country Wise Outlook for the CBD Beverage Market
The 2025-2027 outlook for the global cbd beverage market is uncertain due to the recent implementation of stricter regulations concerning cannabinoids and ongoing mergers and acquisitions. According to Lucintel's report, published in April 2026, they have identified the market trends and projected market conditions until 2031. During this time, governments and market players are expected to finalize product regulations and standards.
- United States: In March 2026, Splash Beverage Group announced a non-binding merger agreement with Medterra. If finalized, this merger would combine Medterra's CBD product lines, estimated to have over 2 million customers, with Splash's beverage manufacturing and distribution operations. This merge is expected to change the cbd beverage market in the next 3 to 5 years.
- China: China's mandated testing of exported food containing cannabinoids. In July 2025, China's mandated standard SN/T 5597-2024, took effect. In the years to come, the mandate will create a system to test the food and beverages being exported from China to other countries that may contain cannabinoids.
- Germany: The CBD applications being processed by the EU. In February 2026, the European Commission revoked the applications to process CBD, as well as CBD tinctures. Under the novel foods framework, other CBD applications are being processed by the EU. In the coming years, until the EU grants CBD authorization, beverages containing CBD will not be legal in Germany.
- India: India's FSSAI has screened certain applications. In June 2025, the FSSAI released a register, which revealed that the FSSAI has rejected the CBD product application, Pureis Ultra Pure CBD Capsules. In the coming years, India's cannabinoid regulations will continue to evolve, allowing for the clarification of the pathway to commercially produce cannabinoid containing ingestible products.
- Japan: In November 2025, the Japanese Health Ministry found that a CBD Night Drink contained THC. In the next several years, expect similar regulations and requirements from Japan for all CBD beverages.
Features of the Global CBD Beverage Market
- Market Size Estimates: cbd beverage market size estimation in terms of value ($B).
- Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions.
- Segmentation Analysis: cbd beverage market size by various segments, such as by product type, formulation, distribution channel, end use, and region in terms of value ($B).
- Regional Analysis: cbd beverage market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
- Growth Opportunities: Analysis of growth opportunities in different product type, formulation, distribution channel, end use, and regions for the cbd beverage market.
- Strategic Analysis: This includes M&A, new product development, and competitive landscape of the cbd beverage market.
Analysis of competitive intensity of the industry based on Porter's Five Forces model.
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This report answers following 11 key questions:
- Q.1. What are some of the most promising, high-growth opportunities for the cbd beverage market by product type (CBD infused water, CBD tea, CBD coffee, CBD soft drinks, and CBD alcoholic beverages), formulation (carbonated, non-carbonated, powdered, and ready-to-drink), distribution channel (online retail, supermarkets, specialty stores, and health stores), end use (millennials, generation x, and baby boomers), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
- Q.2. Which segments will grow at a faster pace and why?
- Q.3. Which region will grow at a faster pace and why?
- Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
- Q.5. What are the business risks and competitive threats in this market?
- Q.6. What are the emerging trends in this market and the reasons behind them?
- Q.7. What are some of the changing demands of customers in the market?
- Q.8. What are the new developments in the market? Which companies are leading these developments?
- Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
- Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
- Q.11. What M&A activity has occurred in the last 8 years and what has its impact been on the industry?