Cannabis-Infused Drinks Could Be A $600 Million Market by 2022

[dropcap class=”kp-dropcap”]B[/dropcap]everages infused with cannabis compounds could become a $600 million market within the next four years, outpacing the retail growth of other retail cannabis products.

According to analysts at Canaccord Genuity, beverages with CBD or THC ingredients could grow to capture about 20 percent of the U.S. market for edible cannabis products by 2022, up from six percent of edibles sold now.

Beverage companies have been interested in cannabis-infused drinks for some time now. Molson Coors Brewing has recently formed a joint venture with Hexo Corp. and Constellation Brands, the company behind Corona beer, became the largest stakeholder in Canadian cannabis cultivator Canopy Growth Corp. Shareholders representing more than 95 percent of the shares in Canopy Growth recently approved a $5 billion investment from Constellation Brands, boosting their ownership stake from 8.5 percent to 38 oercent. Heineken-owned Lagunitas has also released an IPA-inspired beer made of hops and cannabis, called H-Fi Hops. The beer is alcohol-free and is marketed as a “cannabis-infused hoppy sparkling water.”

Coca-Cola recently announced it would explore CBD in its products as well, reportedly being in talks with Canadian-based cannabis producer Aurora Cannabis Inc. to use the benefits of CBD to create a “recovery drink.” Coca-Cola has a history of infusing their beverages with drugs, as the original Coca-Cola beverage was made with trace amounts of cocaine until 1929.

Canaccord sees the demand for beverages infused with THC reaching $340 million by 2022, up from the $106 million expected this year, while the demand for CBD drinks could reach up to $260 million by 2022.

“Interest has spiked from the beer industry on mounting evidence of a substitution relationship between cannabis and alcohol, while large soda companies increasingly view CBD as a natural fit within their strategically important wellness offerings,” Canaccord Genuity’s Bobby Burleson wrote in a note.