As consumers move towards healthier lifestyles, THC beverages are seeing rapid market growth in the US and North America.
A US cannabis distribution report for cannabis drinks by Brightfield Group has shown that THC beverages are beginning to dominate the edibles market.
Brightfield has estimated the edibles market to reach $788m by 2026 – a 72 per cent growth from 2022 to 2026 – compared to projections with flower, which the company is predicting will grow at 57 per cent in the same period.
Currently, “canna cocktails”, tea bags, low-dose canned drinks, high-dose shots, powdered mixes, enhancers and shareable bottles are just some of the innovative ways consumers are enjoying cannabis drinks.
Brightfield Group has comprised digital menu audits of thousands of dispensaries across the US and Canada and aggregated them to create a comprehensive view of products available on shelves. Digging into the detail on THC beverages it discovered which brands and flavours were dominating the market.
The most successful branded products on shelves come from Keef, Select and Kikoko.
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Attributing Keef’s success to a variety of consumer choices, Meg Bluth, senior director of insights at Brightfield Group, commented: “Keef is by far the strongest brand with about 9 per cent of distribution. They have some of the largest bifurcation of products such as sodas, sparkling waters, mocktails, energy drinks and enhanced water.
“They really are trying to go after a cohesive, larger market whereas Select enhanced drops for beverages and Kikoko is infused teas. So, you can see that if you’re looking at 100 per cent of cannabis drinks, Keef is making 9.2 per cent of that and distribution.”
The report highlights that 100mg doses dominate the edibles category, including drinks, with 10mg doses being popular in the cannabis drinks segment with 15 per cent distribution compared to 10 per cent for all edibles.
The report also highlights flavours in this product category that are proving tantalising for consumers, such as lavender – a flavour that is currently seeing popularity in California across broader health trends.
“We were also able to see flavour trends across the nation – number one is lemonades and lemon, in general grape and raspberry are some of the top flavours, but we’re also seeing by state some flavours that are kind of popping to the top.
“California is seeing a lot of lavenders, grape is really coming to the surface in Colorado and products that have the watermelon flavour are definitely popular in Michigan. So, it’s interesting to see some of the the regional behaviours with flavours and how that will be different across the US.
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“We also have another study that we do internally – our wellness tracker of consumers. We have seen lavender popping up in beverages in California quite strongly and as an ingredient in the wellness sector in these last few quarters.
“We do know that California tends to lead the way in a lot of things that have to do with cannabis as well as within the health sector. So, I think that there’s more to understand. Lavender has those calming qualities, and people are looking for additional relaxation. I think that might be why we’re seeing some increase with lavender because we are seeing the relaxation needs for consumers growing – people have been challenged and dealing with all of the stress of COVID. So, anything that can help to relax are really helpful.
“I’m sure there’s some regional differences – I think it will be really interesting to see also, as the seasons change within the US – are we seeing flavours change, and are we seeing some flavours such as watermelon really peak through the summer?”
Bluth says the THC drinks category is one of the strongest growing subcategories within the cannabis market in the US, attributing a driving force of the segment to consumers seeking out alternative products to alcoholic drinks.
Bluth commented: “Edibles in general are going to go quite strongly and drinks are projected to grow strongest within that category. We are definitely seeing that the consumers that tend to drink these cannabis beverages are trying to reduce their alcohol consumption.
“So, 73 per cent of people who are drinking cannabis beverages are saying that they are trying to actively reduce their alcohol consumption. The majority of that, almost 70 per cent, are saying that’s to be healthier and almost 50 per cent are saying it’s also for mental health.
“So, there definitely is this idea and this shift to a more “sober living” – we call it the “California Sober” – there is shifting away from alcoholic beverages for these consumers to this cannabis beverage. They are still looking to the intake of cannabis to be in emotional relief, but there also is a level of fun and energy that they’re getting from cannabis that they’re looking overall.”
Bluth says 42 per cent of these consumers report that they are looking for energy versus 30 per cent and moving towards a healthier lifestyle.
“I think it’s a replacement product,” said Bluth. “I think it’s a very easy product to consume wherever they may – for example, some of the occasions that the consumers within the beverages category use cannabis for index on things like video games, and before and after exercise, so they’re really incorporating it to other aspects of their lives that other cannabis products perhaps are not fitting as well into.”
As Europe looks towards recreational markets, Bluth says Brightfield anticipates drinks will take a fair share of that market as and when regulation allows.
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