Released estimates show that by the end of this year, the THC-infused beverages market will be valued at $340 million. Manufacturers of marijuana beverages need to understand the gaps in the market and find ways to bridge those gaps in order to approach the same levels of market share as its alcohol counterpart.
Consumer sentiment is the primary driver in the creation of new categories, and there are four areas of opportunity driven by consumer sentiment, which manufacturers in the flourishing cannabis beverage industry should consider. Those areas include the following:
- Individuals who are sensitive to the effects of alcoholic drinks and prefer to not have hangovers but would still like a beverage that allows them physical and social benefits.
- Marijuana consumers who would like to replace their smoking habits or complement their existing consumption preferences.
- New consumers who are easing into or are curious about recreational marijuana but aren’t keen on experimenting with edibles.
- Individuals who consume alcohol and have become mindful of the effect alcohol has on their well-being and health and are seeking alternative ways to socialize and/or relax.
Once manufacturers gain a good understanding of the consumer insights that drive growth in the beverage market, they can take into consideration the unique opportunities in the market which benefit them. These include the following:
The popularity of THC products has been growing
Thus far, 18 states have legalized the recreational use of marijuana, which has led to the creation of a billion-dollar marijuana market.
Beer and overall beverage market sales have declined
Growth has stagnated within the larger beverage market in the last couple of years. This has pushed manufacturers such as Heineken and Molson Coors to invest in research and development in new markets, particularly cannabis, as cannabis beverages may soon replace alcoholic drinks.
Possible manufacturing advantages
Manufacturers of THC- or CBD-infused beverages can ferry their concentrate to existing facilities that are used in the manufacture of carbonated drinks, given that the facilities are currently underutilized, judging from the reduction recorded in beer and carbonated drink sales. This will allow cannabis beverage makers to make use of production availability.
However, there are also challenges that manufacturers should keep in mind. This includes the interstate travel requirements as well as the serving size and weight restrictions, among many others.
This shouldn’t discourage those seeking to invest in or that are already involved in the industry, as there are uncertainties with any new market. Keeping in mind these challenges as well as opportunities the market presents may increase a company’s chance of success. Companies such as Flora Growth Corp. (NASDAQ: FLGC) that have a stake in the beverages segment have their work cut out if beverages are to make a sizeable dent into the market share that cannabis flower currently enjoys.
NOTE TO INVESTORS: The latest news and updates relating to Flora Growth Corp. (NASDAQ: FLGC) are available in the company’s newsroom at https://cnw.fm/FLGC
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