So, how popular are cannabis beverages? With just over a month left in 2022, it’s time to take a step back and analyze sales and consumer data for this product category.
Using real-time data reporting from Headset, we can see how cannabis beverage sales have increased by 40% in the US and Canada.
But more importantly, we can answer questions like: which beverages are the most popular? What are the consumer demographics like? And which markets are cannabis beverages the most popular?
Market Popularity of Cannabis Beverages
With triple-digit year-over-year sales, cannabis beverages have never been more popular. Seasonality is a factor, with summers and popular holidays (like the 4th of July) seeing spikes in sales.
In Canada, cannabis beverages are the 7th most popular product, making up 2.1% of total cannabis sales from January to October 2022.
In the US, this popularity captured 1.1% of the cannabis market, making beverages the 6th most popular category.
The market share of cannabis beverages in Canada and the US varies from province to province and state to state.
In the province of Ontario, for example, beverages made up 2.4% of total cannabis sales.
US markets in Washington, Oregon, and California remained the most popular states for cannabis beverages, despite being less than 3% of total sales.
Typically, the more recent the legalization, the less popular cannabis beverages are.
In the US, Florida has the lowest sales of beverages at 0.1%. Of course, we can explain this by a couple of factors. One, Florida only has a medical program which the government strictly controls.
Second, there are no ready-to-drink products available in Florida. Patients must buy cannabis powders that they dissolve into other drinks.
The Growing Popularity of Cannabis Beverages
Michigan has the lowest share of beverage sales in any recreational US cannabis market. However, Michigan is also the fastest growing.
For the first ten months of 2022, Michigan’s cannabis beverage sales increased 272% compared to the year before.
Other top sales growth markets include Ontario (67%) and Massachusetts (53%).
Other markets have seen negative sales growth over this same period. They include Colorado (-15%), Maryland (-17%), and Nevada (-21%).
That said, the market share of cannabis beverages has only grown more popular, with an increase of 40% since January 2021
Seasonality affects popularity. This is apparent in Canada, where you can see total sales over the last two summers. But popularity spikes exist in US cannabis markets as well.
In both countries, the number of brands offering cannabis beverages continues to grow. Canada experienced a 300% increase in brands. The US experienced 65% growth.
While both countries had good years, the popularity of cannabis beverages in the United States may be slowing.
Popular Cannabis Beverage Brands
So what kind of cannabis beverages are popular? This graph shows a diverse market among Canadian consumers.
Beverages like XMG’S Mango Pineapple Sparkling Drink are among the most popular. Iced Tea, Lemonade, and Fruit products capture 20% of sales. THC-infused Water captures another 19% of the Canadian cannabis beverage market.
There is a greater variety of products in the US.
Drops, Mixes, Elixirs, and Syrups dominate the market. However, Iced Tea, Lemonade, and Fruit, as well as Carbonated Beverages, capture 21%-29% market share. Even the infused Water segment captures 15% of sales.
You cannot legally sell beverages beyond 10mg of THC in Canada. This graph confirms that.
Because high-dose beverages are illegal, as well as selling CBD drinks outside the cannabis access system, comparing the US and Canada on these fronts isn’t without issue.
Without THC limits, customers in the US go for higher-dose beverages. Half of all cannabis beverage sales are in the 100mg per package category.
More THC for a lower price is the obvious conclusion. Speaking of which…
Like other cannabis products, the price of beverages has been dropping in both US and Canada.
Canada has seen the most significant drops in price. However, this might be explained by uncertainty when the products first reach the market. And then, the consumer realized that 10mg drinks weren’t worth the initial offering price.
That said, the US is also seeing drinks drop in price, although by much less.
In Canada, cannabis beverages are popular with males and females between the ages of 26 and 57. These consumers account for over 80% of beverage sales, nine percentage points higher than their typical rate in cannabis.
In the US, female customers over 25 dominate the cannabis beverage category. Typically, this demographic accounts for 29% of cannabis sales. However, in the US cannabis beverage market, female consumers contribute 37% of sales.
Cannabis beverages may be a small part of the cannabis market, but they are rapidly gaining popularity. In some areas, sales have tripled year over year.
Beverages are also an excellent introduction to people who are used to drinking alcohol. If beer and BBQ in the summer go hand-in-hand, why not a THC-infused non-alcoholic IPA?
People concerned about inhaling hash or flower may also find solace in beverages. Unlike traditional edibles, which can take hours before you feel their full effects, some beverage brands use nanotechnology. This not only properly infuses fatty cannabinoids in liquid but also ensures the onset is quicker.
Is anything more popular on a hot day than cracking open a cold beverage? For these reasons and more, stay tuned to CLN to see how popular cannabis beverages remain throughout 2023.