Blending Wellness and Relaxation: How Beverage Brands Can Develop CBD-Infused Drinks for Health-Conscious Consumers
The cannabidiol (CBD) market has experienced explosive growth in the states where it is legal. Today, CBD is everywhere. Consumers can explore CBD's perceived advantages in many ways, ranging from cosmetics to gummies and capsules. However, demand for greater convenience and transparency continues to rise, which is driving interest in CBD-infused beverages. These drinks offer an easy and accessible way for everyday consumers to incorporate CBD into their routines.
The rise of functional beverages has transformed consumer expectations and inspired a surge in the popularity of CBD drinks. Brands looking to explore CBD beverage formulation methods that meet consumer needs must remain aware of the market entry challenges. Overcoming them is crucial for any beverage brand looking to develop CBD drinks for health-conscious consumers.
Understanding the Growing CBD Trend
The Agriculture Improvement Act legalized the cultivation, production and sale of industrial hemp in 2018. While the legalization of CBD products still varies by state, the CBD industry has experienced one boom after another in recent years. Rising awareness of the potential health and functional rewards of CBD is among the many factors driving the industry. In a 2023 survey, 25% of respondents stated they already use or are interested in using CBD products.
More consumers are craving healthy, natural alternatives, and they want to understand what they eat and drink. They're eager to learn about CBD products and their potential benefits, move away from synthetic alternatives, and integrate more plant-based ingredients into their food and drink choices. While beverages are just one of many product formats piquing consumer interest — gummies and capsules (vitamins) are the leading CBD segment in terms of sales — beverage sales are proliferating.
Millions of consumers have clarified their preferences — and where there is demand, there will always be supply. Many organizations are captivating the CBD market with innovative products, from CBD-infused, ready-to-drink coffees to sparkling waters. Brands must navigate unique hurdles, but the sky's the limit once they are overcome.
What is it about CBD that excites consumers? It's nonpsychoactive, which means that consumers can receive the potential health support without feeling "high" or otherwise impaired. Some consumers remain focused on the touted anxiety- and stress-related benefits, while others are focused on pain management and other physical benefits. In many ways, the beauty of CBD products is their versatility. As more consumers shake negative preconceptions and understand the upside, the trend will continue to expand.
The Potential Benefits of CBD for Health-Conscious Consumers
CBD, or cannabidiol, is an active compound primarily derived from the hemp plant. Although it technically has no psychoactive effects, many believe it can induce a mellow feeling. The World Health Organization states that CBD exhibits no effects that indicate the potential for abuse or dependence.
Despite this, much research into its benefits still needs to be completed. Here are some of the potential advantages of CBD.
Reduced Stress and Anxiety
CBD products tout many benefits, but reduced stress is one of the principal reasons consumers use them. CBD products could reduce symptoms related to anxiety, stress and depression. Several clinical trials are ongoing to validate these theories. Past observational studies have demonstrated lower anxiety and stress after cannabis flower consumption.
Many consumers turn to CBD drinks for relaxation. Recent studies show that CBD has considerable tension and anxiety relief benefits with few negative side effects. However, more long-term studies are required to evaluate whether CBD alone is safe and effective for reducing anxiety and stress.
Improved Sleep
Another potential benefit of CBD is better sleep quality. The body's endocannabinoid system (ECS) plays a crucial role in regulating sleep-wake cycles and sleep quality through its interaction with CB1 receptors in the brain. External sources of CBD may potentially enhance sleep by interacting with the ECS.
It's also important to note that if CBD reduces stress and anxiety, it could also indirectly lead to better-quality sleep. Additionally, patients who have taken CBD for pain management have reported that it helped them sleep better. It remains unclear whether their improved sleep is related to pain relief or the CBD itself. One study showed that 160 milligrams of CBD increased sleep duration compared to a placebo, but more research is needed to confirm these effects. Many people in nonclinical settings have reported improvements, making improved sleep quality an exciting avenue for CBD.
Decreased Pain and Inflammation
The relationship between CBD and pain goes back to 2900 B.C. when it was used in Chinese medicine. Thus far, research suggests that CBD can alleviate pain associated with certain medical conditions, including arthritis and fibromyalgia. Early studies also show the potential for reducing the inflammation associated with chronic pain conditions. Again, more research is necessary to prove these effects.
The Growing Trend of CBD-Infused Beverages
While CBD has many delivery systems, beverages make the most sense to consumers. The combination of convenience, accessibility and innovative product variety has made CBD beverages an attractive choice for consumers seeking wellness benefits in a familiar and enjoyable format. As a result, the CBD beverage market is estimated to reach $46.3 billion by 2032. Many beverage brands have already capitalized on consumer interest, optimizing CBD-infused drinks rich with essential vitamins and other functional ingredients.
Today's consumer is looking for more than just flavor in their beverages. In response, brands are transforming everyday beverages into functional masterpieces, and CBD drinks are becoming increasingly creative. As people look for ways to incorporate the potential benefits into their daily routines, brands are developing various beverage options, from CBD tea and coffee to smoothies and bottled water. CBD also has a unique appeal in the adult market, gaining traction as an alcohol alternative, particularly among those looking to reduce alcohol consumption. Many consumers maintain that it boosts mood in a social setting without the side effects associated with alcohol.
Many reasons exist for this exciting beverage trend. Chiefly, many people were already enjoying CBD's potential benefits and looking for new and enjoyable ways to consume it. Beverages provide a familiar and straightforward way to consume CBD. Unlike oils or tinctures, which may require careful dosing and can have a strong taste, CBD-infused beverages are easy to enjoy on the go and come in a variety of flavors and formats. Consumers can simply grab a can or bottle and experience the benefits of CBD without any hassle, especially as they become more widely available in stores and online.
As with all beverage trends, personalization is a massive draw for consumers. The market has seen significant innovation, resulting in a wide variety of CBD beverage types. From sparkling waters and ready-to-drink teas to coffee and sodas, there's something for everyone. This diversity caters to different taste preferences and allows consumers to incorporate CBD into their daily routines in a way that suits their lifestyle.
CBD's fast-acting properties and potential health benefits appeal to an increasingly broad consumer demographic, providing many advantages for consumers and brands alike. Consumers interested in CBD's natural advantages often enjoy other functional ingredients, like ashwagandha, turmeric and mushroom extract. Instead of focusing on CBD alone, brands can combine these plant-based functional ingredients, allowing consumers to benefit from a single beverage.
CBD Beverage Development Challenges
While CBD has been a mainstay on the beverage market for some time, brands may encounter challenges when launching CBD-infused drinks.
Limited Research
As more states legalize CBD, more people enjoy CBD's potential advantages. However, the research needs to catch up for brands to solidify health claims. Labels can be misleading, and the legal environment around claims is still finding its feet. Marketing CBD beverages as cures for various illnesses can draw the Food and Drug Administration's attention.
Market Saturation and Regulatory Hurdles
The demand for CBD products is extensive, and many brands are eager to capitalize on this rapidly growing trend. However, the regulatory landscape is challenging to keep up with. The lack of clear federal regulations creates a complex and uncertain legal landscape. With regulations varying significantly by state, the regulatory ambiguity makes it challenging for brands to develop and market CBD beverages.
Additionally, mass-producing CBD beverages requires brands to work with beverage production facilities licensed for cannabis. The regulatory landscape is still unpredictable, making acquiring these licenses challenging. Even with the necessary licenses, logistical hurdles are rife in CBD production, slowing times to market. CBD beverage production and distribution must occur within the same stage, forcing formulators to rethink distribution frameworks.
Product Sourcing
CBD beverages rely on reputable suppliers. Any CBD used in beverages must be extracted from legally cultivated hemp and undergo proper testing to ensure its purity and potency. Establishing supply chains for CBD beverage formulation and distribution can be challenging in a turbulent regulatory landscape.
Brands may be unable to get the quality products they need from local suppliers, which drives up shipping costs and means more compliance issues. As these costs rise, so do the price of the beverages. It can be challenging to offer competitive pricing under these circumstances.
Consumer Education and Marketing
Despite its growing popularity, there is a significant knowledge gap among consumers about CBD. Many consumers lack an understanding of CBD's effects, usage and available products. Only 44% of consumers believe it should be legal, and around 33% aren't confident in their understanding of the different types of CBD. Many people are open to the potential positives, but educating consumers is paramount to beating some of the existing stigmas.
High Prices
Formulating with natural and functional ingredients can be expensive, and hemp-based CBD is no exception. When you add that to the cost of transportation, licensing and other variable expenses, it can be challenging to market these beverages at a competitive price. As consumers demand more functionality in their beverages, formulating with natural ingredients and remaining competitive on the price is a balancing act.
CBD Beverage Development Opportunities
Despite the above challenges, CBD remains an exciting and profitable opportunity for beverage brands. Explore some of the advantages of developing CBD beverages.
Growing Demand
The demand for CBD products is already high, and as more consumers learn about its potential benefits, it will likely rise further. The trend toward personalized beverages is excellent for CBD products. They could appeal to several target audiences, including health-conscious consumers, athletes and people looking for a way to relax.
Combining CBD with other functional ingredients like mushrooms or vitamins can create products with enhanced benefits, which provides a unique value proposition for brands looking to target new audiences. As research confirms the health benefits, the market will likely open further as brands tap into the growing demand for wellness-focused products.
Creative Beverage Development
Meeting consumers' growing interest in CBD gives brands a unique opportunity for creativity. Consumers are looking for novelty and wellness all rolled into one. They educate themselves on different CBD formats, allowing brands to formulate beverages across customer segments. Some trending CBD drink types include:
- CBD coffee: Caffeine is the world's best-known nootropic, used by many to enhance their energy and focus. The combination of caffeine and CBD may provide a more balanced energy boost and improved focus compared to caffeine alone.
- CBD energy drinks: Functional energy drinks are among the most significant trends in the current market. These drinks go beyond an energy boost and take a more holistic approach to wellness. Infusing CBD into these drinks may potentially offer anti-inflammatory properties and improved recovery.
- CBD mocktails: The sober-curious trend is taking hold as many consumers seek out healthier alcohol alternatives. Almost 40% of consumers claim to follow a sober-curious lifestyle in which they reduce or eliminate alcohol. CBD mocktails allow them to enjoy a few fun drinks while eliminating hangovers and possibly enjoying a better night's sleep.
- CBD tea: After water, tea is the most consumed drink in the world. It's a health and relaxation staple in many homes, and CBD can enhance many of the advantages customers seek from natural beverages.
- CBD water: This product is water infused with CBD particles. The particles contain small amounts of CBD, limiting potential side effects.
- CBD seltzer: CBD-infused seltzer can be an appealing choice for health-conscious consumers who wish to reduce their soda intake.
The Future of CBD-Infused Drinks
The CBD market is relatively young. As it matures, brands will become increasingly creative in delivering unique benefits. In short, the market's future is bright. With more research into CBD's potential, CBD could become an integral part of consumers' wellness regimes. In addition, the regulatory landscape will likely become more predictable, opening the door for mass production nationwide.
CBD drinks naturally have an earthy taste and chalky texture, and brands have already made significant headway in improving these areas. The CBD itself is odorless and flavorless, making it easy to produce cleaner tastes. Beverage brands have an invigorating opportunity to add natural flavors and sweeteners to develop sensations that fulfill multiple consumer needs.
As an industry in its relative infancy, CBD beverages have countless opportunities to develop new products to meet evolving consumer needs. Consumers will likely seek convenient and enjoyable methods to integrate CBD and other functional ingredients into their routines. They already turn to beverages for their vitamin, adaptogen and nootropic needs, making CBD the next logical step for multiple markets.
Explore the World of CBD Beverages With BevSource
CBD is here to stay. Beverage brands can develop formulations to suit many consumers, providing significant functional ingredients to target specific preferences and markets. You can use CBD in almost every beverage segment, and as the research catches up to consumer demand, we can expect a host of innovations in the coming years.
If you want to join the CBD beverage movement, BevSource can turn your idea into something tangible. We support you throughout every stage of your beverage journey, allowing you to unleash your creativity and expand into new and exciting markets. We will help you source, develop and formulate your CBD beverage, accelerating your speed to market with our extensive connections, experience and skills. Get in touch with a beverage development specialist and start your CBD journey today!
