Cannabis is right ow a hot market, and the business is booming. The industry is considered one of the fastest-growing industries in the world, and it is not slowing down. Every day the cannabis industry is changing, and it is growing. It shows no sign of slowing down.
Entrepreneurs are now a strong potential in the industry for profit. The use of cannabis is legalized in many places, and it is getting more popular votes; thus, the market is also expanding. It is growing exponentially. In the recent years, there was a huge growth in the economy, thanks to the efforts of cannabis proponents and their never-ending quest in developing new breeds and products which made cannabis a valuable item in the market.
The surprising thing, though, it is not just cannabis enthusiasts who are interested in the cannabis business. Non-cannabis entrepreneurs and investors alike are showing interest in making a mark in the industry as well. Why? Because they see a profit. According to Forbes, $9 billion was spent in the cannabis industry in the year 2019, and it is predicted to reach $20.2 by 2021. Such a remarkable feat.
That is the reason why many industries are finding their way to investing in the cannabis industry. Among the top industry that has already invested in the cannabis industry are beverage companies.
Why Are Beverage Companies Investing in The Cannabis Industry?
A prospect to a very promising market. Just like tobacco, these giant companies have seen the cannabis market in a full spectrum. Why would anyone invest a big amount of money, of course, business-wise, they have seen the profit in investing in the cannabis industry.
Here are the reasons why top beverage companies are investing in the cannabis industry:
They See the Market Size
According to the Brightfield Group, the estimated spending on cannabis by 2022 will be around $22 billion. And that is just an estimate, but the market is growing each day so it might even exceed the given figures. Beverage companies have recognized that the cannabis industry is going strong even though there are still legal restrictions. Also, it was just legalized to several states, and with the way things are going, it will surely add more places by the end of 2020, and that would mean more cannabis spending.
Cannabis Drinks
Cannabis drinks are gaining popularity, and it is growing. Seeing that cannabis concentrates are in demand, these companies have also thought of coming up with cannabis-infused drinks. This is their way of attracting cannabis users to try their products. Imagine a soda or a beer with the kick of your favorite cannabis strain? Cannabis drinks are becoming big business. Cannabis drinks were slowly introduced in the market, first in Canada.
Health and Wellness
For most beverage companies, one of the main reason, while they are investing, is to position themselves in health and wellness. It is a given knowledge to every cannabis consumer that it has medical benefits that are making breakthroughs in the medical society. Medical cannabis is available in many forms so that they can be administered easily to the patients or make it easier for consumers to administer it by themselves. Some beverage companies have developed health and wellness drinks that can be enjoyed at night so you can relax, thanks to its cannabis content. This is another market. A whole new perspective that will attract not just cannabis consumers but also non-cannabis consumers who may need the aid of the cannabis drink to make them feel better.
A Perfect Alternative to Alcohol
Cannabis can let the consumer experience a euphoric high without endangering or having an impact on the liver. Cannabis drinks can do the same. It can be enjoyed in moderation and in different flavors. Consumers see cannabis drinks as a healthier option; that is why it is gaining popularity. Cannabis drinks can be consumed in social gatherings without worrying about a hangover.
Access to Mainstream Customers
The cannabis industry is composed of cannabis consumers, both young and old, but the bigger population is composed of young adults and teenagers who are always seeking new flavors and products. These are the consumers who can spend much on cannabis. They are the one’s who are risky in trying out new products. Most of the cannabis spending are from this group. Cannabis drinks can entice cannabis consumers and new consumers who may not like to smoke cannabis, so canna-drink is a good place to start.
Customer Preference
In most businesses, customer preference dictates the products that will keep the company going. Beverage companies have obviously seen the market of cannabis and how are the people responding to it. Its economy is skyrocketing, and with that, they have developed their own version of drinks that will become popular and accepted by the consumers. Millennials are the largest group of cannabis consumers. They value health and wellness; they enjoy social gathering, or they just want to enjoy cannabis.
Profit
Yes. The main reason why beverage companies have put their investment in cannabis is that they have predicted the financial gain. Cannabis drinks are not cheap; they are about $25 -$31 per bottle, but for most consumers, they are worth it. Cannabis consumers are willing to spend on cannabis beverages to quench their thirst and enjoy the effects of the weed.
Beverage companies decide to invest in the cannabis market because they saw the big potential and a great opportunity to build premium-quality brands similar to their beverage products but with a taste of cannabis in it. They have seen the potential market and predicted the profit.
Just like in any other industry, investing in something new is a high-risk decision that you have to make. A decision that should be very well planned and thought of. A successful investment should be long term. With beverage companies coming in the scene of the cannabis industry, we are expecting something big. Something new. These partnerships that we never thought of years ago. The cannabis market is indeed on the roll, and it is not stopping.