The Cannabis Beverage Market: An Untapped Profitable Sector
The CBD (Cannabidiol) Market is hitting very high figures. Here are some insights on the burgeoning demand for cannabis beverages amongst customers, the challenges of tapping into the cannabis market, and introducing your beverage brand.
In terms of the entire range of edibles, beverages have emerged as the most accessible way to consume THC (Tetrahydrocannabinol). Furthermore, such drinks are gaining popularity due to their more effective portion-controlled dosing, functional benefits, the availability and flexibility of administration.
Image Source: RoyalQueenSeeds ( Marijuana Infused Mojito)
There are now numerous types of CBD beverages available, and their applications continue to expand. Many large beverage companies have already made significant moves into this industry, and as widespread acceptance grows, this trend will only continue.
Image Source: Cannyx Market
The cannabis sector is expanding exponentially across America, fueled by demand in North American markets.
According to Fortune Business Insights, in 2020, the worldwide cannabis market was worth USD 574.90 million. The market is expected to increase at a CAGR of 54.31 percent, from USD 915.06 million in 2021 to USD 19,063.58 million in 2028. North America leads the cannabis-infused beverage market, accounting for USD 527.83 million in 2020.
According to the Brightfield Group study, THC(Tetrahydrocannabinol)-infused beverages will account for $1 billion in US sales by 2025. CBD drinks, which are now available on a larger scale and in regions where cannabis is not yet regulated, are estimated to generate $2.5 billion in sales. Meanwhile, according to Euromonitor data, legal cannabis sales are expected to rise from $30 billion in 2020 to $90 billion in 2025.
The global impact of COVID 19 has been exceptional and astounding, with cannabis-infused drinks experiencing a positive demand shock across all areas amid the pandemic. In addition, newly developing markets represent an opportunity to gain an early foothold in what may become a significant global economy affecting billions of people.
Let’s talk about the challenges involved with tapping into the cannabis market:
The beverage sector is incredibly competitive, but you can conquer it with the right product and a great business approach as an entrepreneur.
- It is crucial to create a "self-regulating" product, which means that by the time a consumer has their first drink, they should know whether their tolerance allows them to have another.
- The states in the US are still developing labeling, testing, and safety requirements, and many of these regulations keep changing and updating as it is a burgeoning market.
- While the regulations in the States keep developing, you must ensure you deliver safe and approved products to the consumers.
Image Source: Cannabis Energy Drink
Introducing your own Cannabis Beverage brand
Starting a journey to introduce your new beverage product concept into a highly competitive industry is a decision that should not be taken lightly. Before you can fill your first juice container, you must first conduct a lot of research to ensure that you make the best product possible and your product will be competing with the many other brands already on the market.
Some points to keep in mind when introducing your brand:
1. Consider which product category your ideas fit into so that you can conduct proper research and successfully analyze the competition. It could be energy drinks, health drinks, juices, sodas, coffees and teas, sparkling waters, or alcoholic beverages.
2. Spend time developing your formula for your initial product concept and other possible products.
3. Experiment with different recipe modifications. Make your product available to the general audience for feedback.
4. The more information you can get about what customers think of your items, the better your product. Make a list of what your product requires to be successful.
5. Take time to develop your product. Meanwhile, spend time crafting your business plan by targeting the right buyers and consumers. Analyze the market.
6. Develop a marketing plan. Your marketing strategy must include a wide range of topics. It entails more than just delivering your goods to consumers; it should necessitate careful consideration of the big picture. In your marketing plan, you must identify numerous critical components, including:
- What is your target market?
- What differentiates your product from the competition?
- How are you going to approach the market?
- What will sales strategies be implemented?
7. Create a brand logo for your brand, and your logo should reflect the character and personality of your product.
8. Be creative while choosing the design for your bottles. Juice bottles, soda bottles, and water bottles frequently have a similar look, but it may be time to break the pattern and choose a distinctive bottle design to attract more attention to your product. Create an instantly identifiable signature design, and the look will sell itself.
9. Understand your finances and legalities. Finances are an essential aspect of any starting business operation. Understanding how much it truly costs to develop and advertise your product is critical. For many entrepreneurs, the initial launch expenditures are a deal-breaker. However, if you go through your business plan and fill in all of the blanks, you'll know precisely how much money you require to invest upfront and during the sales process.
10. Federal and state laws govern the beverage business. Therefore, you must research the regulations that apply to your product to guarantee that your company has the necessary licensing and certifications. Regulatory bodies may close your business if you do not have the required licensing, and you may face significant fines for regulation infractions.
11. Buy the right production equipment and keep track of manufacturing needs and the cost of ingredients you use during production. Most beverage companies believe that using the freshest ingredients available in their product is critical. You must comprehend the procedure of locating the ideal elements and assessing all your selections' cost-effectiveness.
Start planning and creating. Its time.
Article by Aakriti Rawat, Beverage Trade Network
Header Image Source: Fortune Business Insights