PORTLAND, Oregon -- Allied Market Research recently published a report that predicts the global cannabis food and beverage industry to be worth $2.63 billion by 2026. As of 2018, the market was valued at $427 million. The growth would register a compound annual growth rate (CAGR) of 26.6% from 2019 to 2026.
The increase in recreational or medical cannabis production in various countries will fuel the global cannabis food and beverage market. The outlook is also based on ongoing efforts to legalize cannabis-based food and beverage products, as well as the surge in use of cannabis to treat various health disorders.
However, a shortage of high-quality cannabis could curb the growth to certain extent.
According to Allied, the bakery products segment contributed to one-fifth of the global cannabis food and beverage market share in 2018, and is expected to lead the trail till 2026.
The study suggests that the cereal bars segment could see the fastest CAGR of 28.5% from 2019 to 2026.
The specialty store segment accounted for more than two-fifths of the global cannabis food and beverage market share in 2018, and is anticipated to dominate through 2026. This is attributed to the rising affluent population in emerging countries such as the U.S., Canada, and UK. At the same time, the online stores segment would showcase the fastest CAGR of 29.1% throughout the forecast period. This is due to rise in internet penetration across the globe.
North American Market
North America garnered the largest share in 2018, holding more than two-fifths of the global cannabis food and beverage market.
Canada has recently made cannabis legal and many manufacturers are entering the cannabis food and beverages industry, which is penetrating the market with more products.
Simultaneously, the region across LAMEA would grow at the fastest CAGR of 28.1% by the end of 2026.
With increase in production of cannabis from farming, manufactures are also welcoming the supply from the farmers and are inventing newer products with different attractive flavors, thus boosting the market growth.
According to Allied, industry front runners include:
- Dixie Brands Inc.
- The Alkaline Water Company
- Coalition Brewing
- Natural Extractions
- The Supreme Cannabis Company
- New Age Beverages Corporation
- General Cannabis Corporation
- Koios Beverage Corporation
The report, "Cannabis Food and Beverage Market by Product Type (Bakery Products, Chocolate, Cereal Bars, Candy, Beverages, Ice Cream, and Others), and Distribution Channel (Mass Merchandisers, Specialty Store, Online Stores, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026," is now available for purchase online.