Are Cannabis-Infused Drinks the Next Big Stock Trend?

Published on: June 11, 2021
Author: Caroline Kong

Cannabis-infused drinks are trending right now, and they could be the next big thing to hit the health and wellness sector.

From celebrities to cannabis producers, everyone seems to be getting on board with these nutritious beverages, and the sector could see exponential growth as more states move towards medicinal and recreational cannabis legalization.

As investors look for ways to profit from the massive surge of interest around CBD-infused drinks, cannabis beverage related stocks could see prices soar. But what are cannabis infused drinks, and why are they becoming so popular as a health-focused alternative wellness treatment?

What Are Cannabis-Infused Drinks?

The cannabis sativa plant produces several chemical compounds, known as cannabinoids, but the two main ones are tetrahydrocannabinol (THC) and cannabidiol (CBD).

THC is the chemical compound found in the cannabis sativa plant that gives users the psychoactive “high” sensation that cannabis is generally known for.

CBD, on the other hand, while having a similar chemical structure to THC, does not produce any psychoactive effects in users.

Both THC and CBD-infused beverages are becoming increasingly common. However, CBD-infused drinks utilize activated CBD concentrate, which is non-psychoactive and is meant to provide users with the health-related benefits of cannabis consumption without any of the mind-altering side effects.

From a strictly clinical application, the potential benefits of CBD are most visible in the treatment of drug-resistant epilepsy. The FDA recently approved the first CBD-based epilepsy medicine for the treatment of Dravet and Lennox-Gastaut syndromes.

However, other recent studies have explored the benefits of CBD to treat several chronic illnesses, including depression, anxiety, insomnia, and stress, and found some statistically significant results.

How Big Is the Cannabis Drink Market

The cannabis-infused drinks market right now is big, worth an estimated $1.82 billion in 2020. However, a recent report released by Prohibition Partners estimates that the global cannabis-infused drinks market could grow to $5.8 billion by 2024, with the US expected to generate close to 70% of future sales.

By 2025, the CBD-infused drinks market could reach $1,018.3 million.

Targeting individuals searching for a better-for-you, healthier lifestyle, cannabis-infused drinks are rapidly gaining popularity among those looking for natural ways to improve their physical, emotional, and mental wellbeing.

The boom in demand for CBD-infused products can partially be attributed to the increasing prevalence of mental health-related illnesses. An estimated 264 million people are suffering from mood disorders like depression and anxiety, a number that has been steadily increasing, and CBD-infused drinks are becoming an increasingly popular treatment option.

Over a quarter of current CBD users consume CBD products daily to manage mood disorders, pain relief, or as a means of relaxation, and recent surveys suggest that as cannabis use becomes normalized, that number will grow exponentially.

We are also seeing growth in cannabis-infused drinks as a substitute for other intoxicating substances, namely as an alternative to alcohol and other recreational drugs.

In a recent study, up to 66% of respondents reported using cannabis products as an alternative to illicit drugs, alcohol, and prescription drugs. And consumer research found that 40% of those who have or intend to replace alcohol choose cannabis-infused drinks.

This desire to seek out alternatives to other intoxicating substances suggests high growth potential within the cannabis and CBD-infused beverage market.

Who is BevCanna?

For investors looking for cannabis beverage stocks, BevCanna Enterprises Inc. (CSE: BEV | OTCQB: BVNNF | FSE: 7BC) is one to watch.

BevCanna Enterprises Inc. is quickly gaining traction as a leader in the emerging cannabis-infused beverage sector. The company has decades of experience in the manufacturing, branding, and distribution of iconic beverage brands for both in-house and white-label clients. They are now setting their sights on the cannabis-infused drinks market, hoping to leverage their experience and position as an early innovator in this high-growth sector.

BevCanna has made a number of highly strategic acquisitions, bolstering its position as an industry leader.

In December 2020, BevCanna entered into an agreement with Naturo, the company behind the popular plant-based mineral beverage and supplement brand TRACE, to purchase all issued and outstanding shares. Upon closing the deal in February, Naturo became a wholly-owned subsidiary.

Back in September, the company acquired established natural health and wellness commerce site Pure Therapy.

What will set BevCanna apart from its competitors?

BevCanna is bringing a consumer-centric approach to the creation and distribution of high-quality, in-demand cannabis-infused beverages. With a large investment in proprietary consumer research and decades of experience, they are uniquely positioned among beverage manufactures to bring innovative cannabis-infused drinks to market.

Whether it’s for their in-house brands or working to create customizable all-in-one solutions for white label clients, BevCanna has a verifiable track record of bringing innovative products to market, with appealing brands ranging from value to craft to premium product segments.

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