Cannabis Beverage Report
While a small category, Beverages have significant potential for growth. Currently making up 1%-3% of overall cannabis sales, Beverages are rapidly climbing with triple digit year over year sales growth in some markets.
As this young category gains popularity, there are several important questions we need to answer in order to understand what is driving success for Beverages. In which markets are Beverages the most popular? What types of Beverage products are in demand?
How quickly are new brands entering the market? What consumer demographics are attracted to these products? All of these questions and more are answered below, so let’s crack a cold one and dive in.
Report takeaways
Beverages are a small but growing category. Since the beginning of 2021, market share of Beverages has increased nearly 40% in both the US and Canada.
Beverages are more popular in Canada than in the US. On average, Beverages make up 2.1% of total sales in Canada and 1.1% in the US.
Seasonality is a significant factor. Beverage sales have spiked in the last two summers in both Canada and the US, as well as on popular US holidays such as 4th of July, Labor Day, Thanksgiving and Christmas.
Industry excitement may be exceeding customer demand. Since January 2021, the Canadian market has seen a 300% increase in brands. Beverage brands grew 65% in the US over the same time period. This flood of new brands and products into the market could be exceeding demand and contributing to price compression within the category.
A variety of types of products are attractive to consumers. Both countries have over three product segments with over 15% market share.
High dose packaging is popular with US consumers. High dose products (25mg – 1000mg), make up over one-third of all Beverage sales, with 100mg packages contributing 22% of total sales through the first ten months of 2022. Low dose Beverages with less than 6mg of THC account for over 22% of total sales.
Show Notes:
Cannabis Beverages: Examining category performance & trends
https://www.headset.io/industry-reports/cannabis-beverages-examining-category-performance-trends#form
Host:
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
https://www.linkedin.com/in/joshkincaid/
Episode 1073 The #TalkingHedge…
Your Cannabis Business Podcast.
Covering cannabis products, reviews, business news, interviews, investments, events, and more.
https://www.theTalkingHedgepodcast.com
Music Info:
Song: Beat | Keep On | 2020
Artist: Milochromatic Beats
&
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018
Artist: LuxrayBeats
Keywords:
Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks, Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data
Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers. This is only entertainment.
If the goal is to reduce alcohol consumption, sugar-based drinks are fine. I think a lot of people are really snobby when it comes to sugar in drinks. Would it be better for people to drink water? Sure. But if someone can replace 3-4 alcoholic drinks or 2-3 sodas with 40g/sugar each, a cannabis drink with 10g of sugar is a better alternative.