beverages Archives - Green Market Report

According to cannabis data firm Headset, since the launch of cannabis beverages in Canada around January 2020, the market share of this category has seen significant growth until reaching a peak of 2.1% of the total Canadian market in December of 2021. With a long history of beverages in the US, market share has experienced slower, more consistent growth in the US over the same time period. 

The count of cannabis beverage products has grown faster in California than in any other US market. By the end of 2021, California had doubled its product offerings to just over 530 distinct cannabis beverage products.

Segment shares are very different between the US and Canada. In the US, the largest beverage segment is the Drops, Mixes, Elixirs, and Syrups, which made up 27.7% of total beverage sales from January 2020 to January 2022. In Canada, carbonated beverages are the biggest segment, which made up 51.5% of sales during the same period.

As the cannabis beverage segment matures in Canada, prices seem to be stabilizing for the products. In January 2020, Canadian Beverage products averaged at $16.21 per product. By January 2021, the AIP for Beverages in Canada dropped 146% to $6.58 per product. The AIP of Beverages in Canada has been stable since July 2020, hovering around $6 per product.

Here are the best cannabis beverages for the summer:

Name of Product: Hi5 Energy States Available: MA and ME Price: $18/4-pack ($5.50 per can) Product Info: With 5mg of THC and 80mg of caffeine, Hi5 Energy is formulated to lift you up quickly and keep you there. It’s made for those of us who seek a little excitement in our daily lives, but aren’t trying to jump motorcycles over the Grand Canyon or skydive from space.

Name of Product:  Levia  Link to Images: HERE States Available: MA Price: $25/4-pack ($7 per can) Product Info: Rooted in simple, delicious, all-natural ingredients, LEVIA cannabis infused seltzers & tinctures are the new way to imbibe. Our proprietary process delivers crisp & refreshing cannabis-infused drinks with zero calories and sugar. So you can enjoy a better tasting, better for you, buzz. Enliven your day, chill your nights and raise your spirits — one soul-lifting sip at a time.

Name of Product:  Select Squeeze States Available: AZ, CA, CO, CT, FL, ME, MD, MA, MI, MO, NV, OH, OK, OR, NY, NJ, UT, VT Price:  $25 Product Info: Squeeze beverage enhancer is a water-soluble liquid infused with nano-emulsified cannabis oil, transforming any drink into a THC-infused, flavor enhanced experience. With a gentle squeeze, the pocket-sized self-measuring bottle offers a precise 5mg serving every time. Flavors include Lemon Lime, Watermelon, Strawberry Lemonade, and Hint of Sweet.

Name of Product: Endless Coast  States Available: MA Price:  $4/seltzer OR $3.50/seltzer when you buy a four pack Product Info: Powered by nano technology, Endless Coast Cannabis-Infused Seltzers provide an accelerated onset of calming effects that are low dose and low in calories, sugar and carbs. Offering a carefully crafted alcohol alternative that lets you hang loose without that next day hangover, the product is available in four micro-dosed options: Grapefruit + Botanicals – 2.5mg THC, 2.5mg CBD Lemon Ginger – 2.5mg THC Lime – 5mg THC Orange Mango Jalapeño – 5mg THC

Name of Product:  Wyld CBD Seltzers States Available: Nationwide Price:  $15.96 Product Info: We’ve cultivated these flavors over the years, carefully honing our recipes to create edible (now drinkable!) delights that enhance every moment with real fruit flavors and THC free hemp. Real fruit-infused sparkling water 10 calories / 2g sugar (or less) per can USA Sourced Broad Spectrum Hemp Extract Enjoyed chilled for the best experience CBD infused drinks in 4 different fruit flavors (Raspberry, Lemon, Blackberry, Blood Orange)

Name of Product: Klaus Mezzrole States Available: CA Price: $12  Product Info: If you’re looking for a unique kind of cocktail this summer, Klaus is the name you need to know. From the “Cocktail Whisperer” himself Warren Bobrow, Klaus’ debut drink, the “Mezzrole” is cannabis-forward with the bold aromatics of terpenes from the Hippie Crasher strain. Then come dollops of zesty and zippy on the tongue with caramelized, spicy ginger cane syrup framed by exotic French lime puree. Rice vinegar carries each sip into a multi-minute finish, ebullient with bursts of heady salt spray splashing over crushed minerals. Clocking in at only three, culinary-grade ingredients and 10mg THC per can.

Name of Product: MXXN States Available: CA Price: $79.99 / 750ml bottle Product Info:  MXXN (pronounced ‘moon’), is the cannabis industry’s first 1:1 non-alcoholic replacement for gin, tequila and bourbon, making it the perfect sub for alcohol in  your summer cocktails. MXXN’s Kentucky Oak can take the place of bourbon, London Dry for gin or the Jalisco Agave for tequila. Refreshing cocktail recipes below: MXXN Margarita 1oz MXXN Jalisco Agave 2 oz lime .5 oz simple syrup Lychee MXXN Martini 1 oz MXXN London Dry 2oz Lychee Puree 1 tbsp Simple Syrup 1 tbsp lime juice Top with soda water Ginger MXXN NEW Recipe 1 oz MXXN Kentucky Oak 1 tbsp fresh lime juice ½ cup ginger beer MXXN is best dosed as follows: 2mg THC (0.5 oz) 4mg THC (1 oz) and 6mg THC (1.5 oz)

Name of Product: TeaPot Good Day Iced Tea Link to Images: HERE  States Available: Canada (Starting July)  Product Info: From the makers of Sam Adams (NYSE: SAM), Truly Hard Seltzer and Twisted Tea, this new line of cannabis beverages comes just in time for summer. TeaPot pairs the right tea with the right pot for the right occasion. The brand’s first release is a Good Day Iced Tea, made with real lemon black tea and infused with Pedro’s Sweet Sativa. Each 12-ounce can of TeaPot contains 5mg of THC and is crafted to minimize any cannabis taste or aroma. Additional varieties of TeaPot will be announced in the coming months.

The global cannabis beverage market is estimated to reach $2.8 billion by 2025 and is projected to see a growth rate of 17.8% from 2019 to 2025. As consumer behavior shifts from carbonated soft drinks to health sodas and legalization gains more footholds across the country, the cannabis beverage market pivots to offer consumers potent and flavor-forward beverages that offer a fresh take on the time-honored ritual of “kicking back with a cold one”. Innovative technologies are likewise flourishing, a development that both drives and responds to growth in the cannabis beverages market.

Liposomal and nanoemulsion delivery systems, clean, water-soluble nanotechnology, and ionization technology are just some of the ways that companies are raising the bar on absorption and therapeutic benefit when it comes to cannabis drinks. Bioavailability has been an ongoing problem in the cannabis beverage market along with ascribing a specific potency or benefit to cannabis drinks. Nanoemulsion in particular seems to be a promising technological advancement, with a global market value that could rise to $14.91 billion by 2025. Nanoemulsions are “fine oil/water dispersions stabilized by an interfacial film of surfactant molecule”, which gives them an edge over products requiring external oils or fats since they can be brought into the brain more quickly. 

Quicksilver Scientific has refined their nanoemulsion process for use by heavy hitters in the cannabis industry such as Truss CBD USA, a joint venture between Molson Coors and HEXO Cannabisnew to create a U.S. line of non-alcoholic hemp beverages. ECS Brands employs biomimicry in its hemp water, which naturally replicates the way the body absorbs fat-soluble compounds. A combination of stabilized gold hemp seed oil and bioactive saponins from green tea provides enhanced bioavailability of oil-soluble cannabinoids and other nutrients by a purported factor of 500-1000%. Ionization technology, used by companies like LifeTonic (maker of “socially empowering” CBD and CBG beverages), converts cannabinoids from neutrally-charged oils into electrically-charged ions capable of dissolving in water. This means that the molecules can be absorbed directly into the mouth before even entering the digestive tract. 

Converting cannabinoids and other fat-soluble nutrients into water-soluble constituents has turned a lingering problem into big business and big science for cannabis companies, and it seems like everyday businesses are claiming the fastest rate of absorption or the purest formulation. Consumers are demanding and getting, more bang for their buck as cannabis delivery systems are refined to deliver on the promised benefits of adding a little cannabis to their beverage equation.

The cannabis industry has seen some players make big bets on beverages, but so far it hasn’t paid off. The market is definitely growing, just not at the rate many had hoped for. Plus, the slow growth of this form factor is not an indication that it won’t continue to increase and eventually gain even more market share. Cannabis tracking firm  Headset recently released a report on the cannabis beverage industry and found that in the US, “The beverage category’s market share has held fairly steady between 0.85% and 1.1% over the last several years. In fact, market share to the category was slowly decreasing through late 2019 and early 2020 before maintaining just below 0.9% during the beginning of the COVID-19 pandemic.”

Despite the consumers tapping the brakes on beverages, the category has begun a turnaround and Headset believes the products are poised to reach an all time high as pandemic restrictions ease. The report also noticed that consumers are at least giving the products a try as basket data is showing more people are tossing some beverages in the bag. The report said, “We can see a relatively steady march upwards over time rising from 1.6% in January 2018 to 2.8% in February 2021. Even though market share hasn’t drastically increased, Beverages are making their way into more and more baskets each month, indicating that more customers than ever are trying THC-infused Beverages.” Only a little over 20% of the shopping carts are filled with only cannabis beverages, meaning the other almost 80% are adding beverages to a larger order. By contrast, a third of edible consumers are buying just edibles when they go to the dispensaries. 

It’s A Girl Thing 

What has been learned is that women are the big buyers of cannabis beverages. In every single age category, women outspent men when buying cannabis-infused beverages. So, hands down, the main consumer for cannabis-infused beverages are women.

Where things get even more interesting in the report is when Headset dives into dosage. The two main categories for purchases are on either side of the spectrum – either low like a microdose or very high for maximum effect. The report stated, “In fact, most of the growth in the 10mg or lighter section over the last few years has come from the 0-5mg ‘microdosed’ cohort of Beverages, which has risen from 14.4% category share to more than 18% of sales this year to date.” For example, so far in 2021 beverages with over 100mg accounted for 59.8% of the market share, while products with less than 5 mg were the second-largest category with a 19.5% market share. 

California Drinking

The report stated that “California Beverage sales in January 2021 clocked in at $15.5M, nearly six times greater than the $2.7M recorded during January 2018, the first month of recreational sales.” Also, since the competition is heating up and there are more beverages to choose from, the top three selling in 2018 brands have seen their market share decline. The data showed that some brands, like Kikoko and Cannabis Quencher have held firm in the market even though new brands have entered the space. “Legal Beverages, on the other hand, was unable to keep up, falling from the third top selling Beverage brand in 2018 to a market exit in 2020.” 

Headset also determined that there are some newer success stories like Lagunitas Brewing Company’s ‘Hi-Fi Hops’ which sells only products containing 10mg of THC or less per serving. Heineken (OTC: HEINY) owns Lagunitas and so the beer is no longer considered a “craft beer”. “Keef Cola, a legacy brand originating way back in the medical cannabis markets, was relaunched in California in 2019 and quickly rose to a prominent position by offering affordable soda, mocktail, and flavored water products in both 10mg and 100mg package sizes.” 

Just like the alcohol industry has seen a big move towards hard seltzers, cannabis beverages have also dipped into the bubbly category. CANN Social Tonics has made a quick splash by using celebrity investors to get attention. The report stated that “Despite extremely high EQ (price per milligram of THC) prices, and with less than a year and a half in the market, CANN has pulled away as California’s top Beverage brand by an increasingly wide margin.” That doesn’t mean it’s alone in the space, Pabst Blue Ribbon recently launched a 5mg seltzer in California, and cannabis-infused wine-like product Rebel Coast left the vineyard to focus on canned seltzer products. 

In Closing

The cannabis beverage is still only a tiny part of the market, but it is slowly growing. Women seem to be the dominant consumer along with gen-Xers. The desired dose is either maximum effect or just a light buzz. The in-between products aren’t generating as much interest and cannabis seltzers could become just as big as alcoholic seltzers.