The global market for CBD-infused wine is expected to generate some serious dollars in the years to come, according to a new industry report.
On Wednesday, Allied Market Research (AMR) released data indicating that the market for fermented grape beverages containing the popular cannabinoid cannabidiol would be valued at US$125.5 million by 2031.
Last year, the market for those drinks was only worth US$11.1 million and AMR says that between 2022-2031 the CBD industry niche will witness a compound annual growth rate (CAGR) of 27.8 per cent.
With respect to region, the market in North America was the largest last year accounting for over 40 per cent of the global CBD-infused wine market. North America is expected to maintain its leadership throughout the forecast period as well, but Asia-Pacific is anticipated to have the highest CAGR at 31.6 per cent.
According to AMR, the offline or in-person distribution channel segment accounted for approximately 80 per cent of the market last year and is anticipated to maintain dominancy through the 2022-2031 forecast period with a 27.9 per cent CAGR.
Market growth will also be driven by a growing awareness of the health benefits CBD can offer and a rising number of health-conscious consumers.
“Established players are developing beverages produced from CBD or cannabis in response to the legalization of cannabis. A huge variety of CBD beverage products are available in the market right now. Olive oil, flavored waters, chocolate, cider, specialty tea, coffee, and lemonade are few of these products. In addition to these goods, the newest trend in spirits is CBD-infused wine,” said AMR report writers.
“In addition, many of the market’s well-known participants, such the Coca-Cola Company, have stated that they are actively monitoring the growth of the CBD beverage business. Walmart has plans to offer CBD products in their Canadian locations, joining Coca- Cola in this endeavor. As a result, during the forecast period, this is anticipated to offer lucrative opportunities for the CBD wine industry.”
AMR is a market researcher and business consultant based in Portland, Oregon. The company has a client base of over 6,200 customers and claims to serve most of the Fortune 500 companies.
Key market players going forward will include Aurora Cannabis, Inc. (NASDAQ: ACB) (TSX: ACB), HEXO Corp. (TSX: HEXO) NASDAQ: HEXO), Molson Coors Beverage Company (NYSE: TAP), Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) and several others.