The growth of the market for industrial hemp products (especially Cannabidiol (CBD)) is growing at a rapid pace. 2018 was a good year for the hemp industry. President Donald Trump signed the 2018 Farm Bill into law. This piece of legislation opened up the hemp industry in many ways. As per the law, the growing of hemp is legal across the US. 2018 also saw the Food and Drug Administration (FDA) approve the first CBD-based medicine. This drug, Epidiolex, is approved for the treatment of epilepsy in children under two-years-old.
Supporters of medical marijuana and CBD are optimistic that 2019 will be a better year. Many are of the opinion that CBD-infused drinks will be the newest products to hit the market. CBD is usually sold as oils, gummies, and other edibles.
Several big-name beverage companies such as Coca-Cola are reportedly looking to create CBD drinks. Coca-Cola is rumored to be planning a partnership with Canadian company Aurora Cannabis to create CBD-infused beverages. PepsiCo is also looking to develop its own CBD beverage brand. In October 2018, there were reports that PepsiCo is seriously working to create its unique CBD-infused drinks. The decline in the sale of sodas may be what is inspiring these companies to enter the CBD market. New Age, another beverage giant, has unveiled its brand of CBD-infused drinks. New Age is the first to take advantage of the emerging CBD beverage market. This company partnered with the estate of the legendary reggae singer Bob Marley to create a line of CBD-infused beverages.
Canadian cannabis companies have already started making CBD beverage deals. In 2018, Constellation Brands, a big-name beer manufacturer, paid over $4 billion for a 38 percent share in Canopy Growth, a company that cultivates cannabis.
Another popular beer company, Heineken is also looking to produce a line of THC-infused sparkling water. Heineken will be producing its CBD water product in its factory based in Lagunitas California. Heineken is reportedly working with AbsoluteXtracts to deliver its CBD sparkling water.
Canaccord Genuity, a marijuana stock analyst company, has projected that beverages infused with CBD are set to become a significant market. Canaccord estimates that CBD beverages could be earning about 250 million yearly in the US beverage market, which already receives approximately 600 million dollars annually. Canaccord also estimates that besides CBD, drinks infused with THC will also see growth. It is expected that THC infused beverages could be earning about 340 million annually.
Some experts estimate that CBD infused beverages will affect the soda industry. The cannabis industry could see a boom that could amount to billions if US authorities fully legalize the plant by 2030. It is estimated that the cannabis industry could be worth 75 billion dollars by 2030.