As cannabis products and delivery systems continue to evolve, infused beverages are rapidly moving to the forefront– most recently marked by the announced partnership between Arizona Beverages and Dixie Brands. As of September 1, 2019, BDS Analytics market data reports 107 beverage brands in the legal dispensary channel (up from 69 in Q2 of 2018) across CA, CO, OR, AZ, and NV and BDS Analytics predicts beverage sales in the regulated dispensary channel to reach $1 billion by 2022. Here are the Top 5 canna-beverage facts from BDS Analytics:

  1. Beverages make up a small, but growing, portion of dispensary sales: ~6% of Ingestibles $ sales, growth of +15% year-over-year.
  2. Canna-beverage consumer penetration is low – for now: ~15% of cannabis consumers in fully-legal markets report consuming cannabis beverages. We expect this number to increase with the influx of new canna-beverage brands, as well as mainstream brands outside of cannabis venturing into this growing category.
  3. Sub-categories are driving growth in beverages: carbonated and non-carbonated drinks are still top, but categories like shots (+127%) and powdered mixes (+61%) are demonstrating substantial growth.
  4. Major cannabis product trends are an indicator of what we can expect in the DISPENSARY beverage market. Within the beverage category, low-dose THC product sales have increased ~70% YOY, and CBD beverage sales have increased ~75%.
  5. Total cannabinoid beverages will be a $1 billion opportunity by 2022: Inclusive of THC and CBD products in the regulated dispensary channel, as well as non-THC cannabinoid beverages within general market retail (food, drug, mass, convenience, etc.). Our partners @IRI are already tracking a growth rate of 134% in hemp or CBD beverages, and growth rates of +1,000% for products specifically labeled as CBD.