Marijuana Beverages - US
The US marijuana beverage industry is poised for exponential growth in the coming years. This can be attributed primarily to the increasing legalization of marijuana across many states. In 2016, the marijuana edibles industry (including beverages) was already worth $7.2 billion, and is expected to have an annual growth rate of 25%. Specifically for marijuana beverages, growth is being driven by the need for variety, novelty and preference for healthy choices among its consumers. Notable players in the US marijuana beverage industry are the following: The Tinley Beverage Company Inc., Rocky Mountain High Brands, Inc., and the High Performance Beverage Co.
GROWTH DRIVERS FOR THE INDUSTRY
Legalization of marijuana across the US has resulted in the surge in the demand for marijuana and its related products like beverages and other edibles. The marijuana edibles industry, under which beverage products are included, was already valued at $7.2 billion in 2016 and expected to further gain at an annual rate of 25%.
MARIJUANA BEVERAGE INDUSTRY TRENDS
Focusing on marijuana beverages, this sector is expected to experience a growth surge and is even seen to challenge the $211 billion alcohol industry. Around 7.1% of revenues from the existing retail beer industry is forecasted to transfer to the marijuana beverage industry.
Key drivers for the increase in demand includes variety, novelty, and tendency to choose healthier options. There were no significant trends involving new packaging or new markets as the industry has just been recently regulated.
As marijuana is still a fairly new legal ingredient, the substance can still be considered a novelty that consumers want to be included in their diet. Different strains of marijuana also have different flavors, allowing for the novelty of personalizing the tastes of the consumers' beverages.
As consumers naturally crave more variety, it is a welcome option for them to have marijuana added into their everyday beverages like coffee, wine, beer, sodas, energy drinks, and even in their hot cocoa.
Marijuana is also touted for its positive health impact, based on various studies. For the increasing number of health-conscious consumers, marijuana-infused beverages can be seen as a healthier option to alcoholic drinks, with more or less the same effect, but with added health benefits. Some research also confirms that products with CBD have been discovered to be have a high nutritional value. These marijuana-infused products can also have several types of health-essential amino acids.
MARIJUANA BEVERAGE INDUSTRY KEY PLAYERS
Based on the recommendation of a marijuana industry observer, three players came up when analyzing which companies are predicted to have significant portfolio gains. As most companies are private and revenues are not readily available, we must rely on industry watchers to provide recommendations on top players in this area.
The three key players that are expected to profit from the beverage industry growth are: The Tinley Beverage Company Inc., Rocky Mountain High Brands, Inc., and High Performance Beverage Co.
The Tinley Beverage Company Inc. provides non-psychoactive hemp-infused beverages and supplements under its Hemplify Vitality Elixirs product line.
Rocky Mountain High Brands, Inc. offers a hemp-infused beverage line that produces energy drinks, lemonade, and other beverages. Rocky Mountain’s energy drink is being promoted as a healthier option compared to commonly known energy drinks like Red Bull. The company’s energy drink contains hemp, ginseng, guarana, and other natural ingredients
High Performance Beverage Co. manufactures and sells performance sports drinks. The company also plans to launch a new line of marijuana-infused sports drinks.
The US marijuana beverage industry is set for significant growth in the coming years due to the recent legalization of the industry. Main driver for growth are the consumers’ natural thirst for novelty, variety, and the rising inclination towards healthier choices. The three key players in the marijuana beverage industry based on expert stock recommendations are: The Tinley Beverage Company Inc., Rocky Mountain High Brands, Inc., and the High-Performance Beverage Co.