CBD Water Market Sales to Top USD 20.02 Billion by 2033

Introduction

The global CBD Water market is poised for significant growth, anticipated to expand from USD 3.05 billion in 2023 to USD 20.02 billion by 2033, achieving a compound annual growth rate (CAGR) of 20.7% during the forecast period. This market’s expansion can largely be attributed to the increasing consumer demand for cannabidiol (CBD) products, driven by growing awareness of their potential health and wellness benefits, such as pain relief, relaxation, and anxiety reduction. These benefits have propelled the popularity of CBD-infused products like CBD water, which offers a convenient and health-oriented beverage option.

However, the market faces challenges, particularly in terms of quality and safety concerns due to the lack of standardized regulations, which can affect the consistency of CBD content and the presence of contaminants. Moreover, the market’s growth is influenced by the health and wellness trend, as consumers increasingly seek natural alternatives to traditional pharmaceuticals.

Recent developments include the introduction of new flavors and formulations, as companies strive to meet consumer preferences and expand their market share. For instance, Cloud Water Brands recently expanded its product lineup with a new flavor, which has helped broaden its distribution footprint through strategic partnerships. Additionally, the market is witnessing technological advancements and a rise in strategic collaborations, which are creating more opportunities for market expansion.

Alkaline88, LLC: The company has expanded its product line with the launch of A88CBD™, a range of CBD-infused topical and ingestible products available at CBD Emporium’s retail locations. This move signifies a strategic expansion in the company’s portfolio, targeting consumers interested in various CBD products beyond water.

Aphria Inc.: Aphria has merged with Tilray, creating one of the largest global cannabis companies. This merger is strategic, aiming to enhance their market position by combining resources and expanding their product offerings. The combined entity is focusing on increasing production capabilities and leveraging each other’s strengths in distribution to reach a broader market.

Aurora Cannabis: This company continues to be a significant player in the market, contributing to the CBD water sector through its various cannabis products. Although specific recent developments in CBD water were not detailed, Aurora Cannabis’s general market activities enhance the visibility and availability of CBD products globally.

Key Takeaways

• In 2023, the global CBD water market generated a revenue of USD 05 billion, with a CAGR of 20.7%, and is expected to reach USD 20.02 billion by the year 2033.
• The type segment held a major share of the market, with the industrial hemp-derived segment taking the lead in 2023 with a market share of 3%.
• By source, the hemp segment accounted for a significant share of 4%.
• By grade, the food grade segment among the other sub-segments held a significant revenue share of the market with 4% of the global CBD water market.
• By distribution channel, the online segment accounted for the dominant share of 6%.
• North America led the market by securing a market share of 5% in 2023.

CBD Water Statistics

• The Global Bottled Water market is expected to reach approximately $267 billion by 2026.
• Bottled water was expected to outsell soft drinks in the United States alone, with consumption at around 12 billion gallons worth USD 13.7 billion.
• Another estimate claims the combined value of CBD beverages will reach $12 billion by 2024
• According to one analysis, the CBD drink market in the U.S. was worth $3 billion by the year 2022.
• CBD product market could be as big as $100+ billion, with CBD drinks contributing a significant portion.
• Over half of the 14 biomes that the Millennium Ecosystem Assessment assessed have experienced a 20–50% conversion to human use but the comparison did not include inland wetlands.
• Where reasonable data do exist, more than 50% of specific types of inland wetlands were lost during the twentieth century, suggesting a loss at least equivalent to that of forest and approximately 2.5 times the rate of loss of coral reefs.
• The benefits of CBD are many – you can read all about them in our CBD 101 guide. In addition, water-soluble CBD has its unique benefits.
• Water-soluble CBD has up to 4.5 times greater bioavailability than other forms. This is partly because the increased surface area of the water-soluble CBD particles allows for easier absorption into the bloodstream.
• CBD oil is broken down once it reaches the liver, with only 6-12% of available cannabinoids being digested before that.
• On the other hand, water-soluble CBD ensures that up to 100% of the active ingredients are absorbed.
• If you are taking CBDactive+, we recommend starting with about 1-2 pumps once or twice a day.
• The rise in tissue CBD was closely related to specific pharmacokinetic parameters, and adipose tissue levels were ~10 to ~100 fold greater than liver or muscle.
• The stock CBD for dosing was supplied by cbdMD and comprised 32.95% CBD in medium-chain triglyceride oil.
• Each CBD dosing was used within 2 h of preparation and maintained on a stir plate up to the point of administration.
• Animals were randomly assigned to four dosing groups, each comprised of 6 males and 6 females.
• The CBD in Schedule 1 of the CSA act was federally legal by the signing of the 2018 farm bill as long as it contained no more than 0.3% THC
• According to BDSA (a market research firm specializing in cannabis data), US sales stood at $25 billion in 2021 and are expected to surpass $42 billion in 2026, accounting for 75% of global sales.
• According to a survey from the consumer’s brand association, 62% of Americans are aware of CBD products, and 55% have purchased products for self-consumption.

Emerging Trends

• Packaging Innovations: As sustainability becomes more important to consumers, packaging options in the CBD Water market are diversifying. While bottles remain popular for their convenience, there is a growing interest in cans and pouches, which offer benefits such as durability, freshness preservation, and reduced environmental impact. Glass and plastic options continue to cater to a wide range of consumer preferences regarding health and cost considerations.
• Flavor Innovations and Health-focused Offerings: Companies are increasingly innovating with flavors and health-focused features in their CBD water products. For instance, new product lines like SAPPE CBD Water have introduced flavors such as Vitamin B Complex and Chamomile, which cater to health-conscious consumers looking for functional beverages with additional health benefits like stress relief and improved well-being.
• Expansion into New Markets: The CBD Water market is expanding geographically, with significant growth expected in the Asia-Pacific region. This is driven by increasing consumer awareness and easing regulatory landscapes, making products like CBD water more accessible to a broader audience.
• Increased Consumer Awareness: There’s a rising trend in consumer education and awareness regarding the potential health benefits of CBD, which is propelling the demand for CBD-infused products including water. This trend is supported by ongoing research and public testimonials praising the benefits of CBD for wellness and health management.

Use Cases

• Stress and Anxiety Relief: Many users turn to CBD water to alleviate stress and anxiety. The interaction of CBD with the body’s endocannabinoid system, particularly its indirect effects on CB1 receptors in the brain, can modulate neurotransmitter release, potentially reducing feelings of anxiety and promoting relaxation.
• Sleep Improvement: CBD water is also popular for its potential to improve sleep quality. Users often consume CBD water to help manage sleep disturbances, benefiting from CBD’s interaction with serotonin receptors which are known to influence sleep and mood.
• Pain Management: There is evidence suggesting that CBD can help manage pain, including chronic pain and pain arising from conditions like multiple sclerosis and arthritis. This makes CBD water a choice for those seeking natural pain relief solutions.
• Workout Recovery: Athletes and fitness enthusiasts may use CBD water for recovery post-workout. The anti-inflammatory properties of CBD can help reduce muscle soreness and swelling, thereby aiding recovery. The hydration aspect of CBD water also supports this use case, making it a two-in-one benefit for active individuals.
• General Health and Well-being: Beyond specific ailments, CBD water is consumed for general health and well-being. Users often cite improvements in overall mood and physical condition due to the holistic effects of CBD on the body’s endocannabinoid system.

Major Challenges

• Regulatory Uncertainty: One of the most significant hurdles for the CBD Water market is the complex and often ambiguous regulatory environment surrounding CBD products. Different regions and countries have varying regulations that can affect everything from CBD dosages to labeling and claims about health benefits. This regulatory uncertainty can deter new entrants and complicate the operations of existing players in the market​
• Quality and Safety Concerns: Ensuring the quality and safety of CBD Water products is another critical challenge. The absence of standardized regulations can lead to products that do not contain the advertised amount of CBD or, worse, contain harmful contaminants. These quality issues can erode consumer trust and deter potential buyers​.
• Market Saturation and Consumer Education: As more companies enter the CBD market, differentiating products becomes more challenging. Additionally, there is a significant need for consumer education regarding the benefits and safety of CBD products. Misconceptions and lack of awareness can hinder market growth as potential consumers may be hesitant to try CBD products due to safety concerns or confusion about the effects of CBD.
• Economic Factors and Pricing Issues: The broader economic environment, including inflation and changes in consumer spending habits, can also pose challenges. High production costs and pricing pressures can make CBD Water less accessible or attractive to price-sensitive consumers. Additionally, the competitive landscape requires companies to invest heavily in marketing and brand differentiation, which can strain budgets.

Market Growth Opportunities

• The CBD Water market presents several growth opportunities driven by increasing consumer awareness about the health benefits of CBD and the broader wellness trend. The market is expected to expand significantly, with some reports projecting it could reach USD 95.46 billion by 2032, growing at a CAGR of over 40%.
• One major opportunity lies in the rising demand for functional beverages. Consumers are increasingly looking for drinks that offer more than just hydration. CBD water, infused with cannabidiol, taps into this demand by providing potential benefits such as relaxation, pain relief, and stress reduction. As more consumers prioritize health-enhancing products, the appeal of CBD water continues to grow.
• Another key growth driver is increasing legalization and evolving regulations around cannabis and CBD products. This creates new opportunities for CBD water manufacturers to expand into emerging markets, especially in regions where CBD is becoming more widely accepted, such as Europe and Asia-Pacific.
• Furthermore, product innovation is playing a crucial role in market growth. Companies are introducing new formulations, flavors, and packaging options, including eco-friendly alternatives, to attract a wider range of consumers. Innovations like the addition of vitamins, electrolytes, or other functional ingredients further enhance CBD water’s market potential.
• These opportunities, combined with a growing focus on sustainability and consumer education, position the CBD water market for continued expansion as it captures the interest of health-conscious consumers globally.

Key Player Analysis

Alkaline88, LLC has significantly contributed to the CBD water sector with its A88CBD™ line of products. They’ve launched a series of functional waters enhanced with CBD, aimed at offering benefits such as relaxation and hydration. The company strategically markets these products through various channels and at several tradeshows, emphasizing the freshness, flavor, and functionality of their offerings​.

Aphria Inc. was a major player in the cannabis and CBD industry, known for its significant growth and expansion. It merged with Tilray in 2021, forming one of the world’s largest cannabis companies. The merger aimed at streamlining operations and expanding the product line in the CBD sector, which includes CBD waters and other CBD-infused products​. This strategic move was designed to leverage both companies’ strengths and significantly enhance their market share in the burgeoning CBD product market.

Aurora Cannabis has been actively exploring the CBD beverage space, considering strategic partnerships to create CBD-infused drinks. This initiative aligns with the growing consumer interest in wellness beverages that offer benefits like pain relief and relaxation. Although specific CBD water products from Aurora were not detailed, the company’s involvement in discussions with major beverage firms indicates a strategic direction towards incorporating CBD into functional drinks, aiming to capitalize on the wellness trend.

Cannabinoids, on the other hand, are already established in the CBD-infused beverage market, specifically targeting the demand for wellness and lifestyle products. Their approach includes offering a variety of CBD-infused beverages, appealing to consumers looking for alternative health and wellness products. The company’s strategy focuses on tapping into the evolving market dynamics where consumers are increasingly leaning towards products that offer health benefits along with convenience.

Cannabis Sativa, Inc. has made strides in the CBD water market by offering hemp and CBD consumer goods, focusing on delivering high-quality, all-natural ingredient products. They also play a significant role in the Telehealth sector with their subsidiary, PrestoDoctor, providing online medical marijuana recommendations, emphasizing their commitment to health and legal cannabis innovations​.

Canopy Growth Corporation has been proactive in the CBD water sector through strategic collaborations, like their partnership with Karma Water to introduce CBD-infused beverages. This initiative highlights their focus on expanding into health-oriented product lines, leveraging CBD’s therapeutic potential to offer consumers wellness-focused beverages.

CBD Biotechnology Co. Ltd is an emerging player in the CBD water market, focusing on leveraging biotechnology to enhance the quality and effectiveness of CBD-infused beverages. Their approach combines modern scientific techniques with traditional practices to create unique and health-oriented CBD water products that cater to the growing demand for wellness beverages.

CBD Naturals has positioned itself prominently in the CBD water sector by offering a range of infused water products that aim to provide hydration coupled with the therapeutic benefits of CBD. Their products are designed to meet consumer interest in health and wellness trends, providing a natural alternative to traditional health solutions with a focus on hydration and relaxation benefits​.

Charlotte’s Web is actively entering the CBD beverage market, developing a line of CBD social elixirs. These beverages, which include sparkling elixirs with various natural flavors, are being created to complement the health and wellness trend. They will feature Charlotte’s Web’s full-spectrum hemp extracts, known for their quality and efficacy. The company’s move into the CBD beverage sector is aimed at expanding its product offerings beyond traditional CBD oils and capsules, tapping into the growing demand for functional, health-oriented beverages.

CV Sciences, Inc. has made its mark in the CBD water market by offering a range of hemp-derived CBD products. Their focus on quality and consumer safety is evident in their commitment to providing third-party tested, high-quality CBD items. CV Sciences looks to leverage its expertise in science and product development to innovate and expand its presence in the CBD beverage space, ensuring it meets consumer expectations for both safety and effectiveness.

Daytrip Beverages has made a notable entry into the CBD water market with its CBD-infused sparkling water line. Launched in multiple states including California, New York, and New Jersey, Daytrip aims to offer a refreshing and euphoric experience through its beverage options. Their sparkling waters are available in flavors like Cherry, Coconut Pineapple, Lemon Lime, and Tangerine, each containing 10 mg of CBD per can. This brand utilizes a unique Foliole Nexus Technology to ensure that the CBD is water-soluble and bioavailable for quick absorption and effective delivery.

ENDOCA is a player in the global CBD market known for its strong emphasis on the purity and quality of its products. Although specific information about their involvement in the CBD water sector wasn’t detailed in recent searches, ENDOCA has established a reputation for producing a wide range of CBD products, including oils, capsules, and skincare items, with strict organic practices. This positions them as a trusted manufacturer in the health and wellness industry, appealing to consumers looking for reliable and effective CBD formulations.

G&Juice has entered the CBD-infused beverages market with a collection of sparkling drinks, offering flavors like Coconut Vanilla, Ginger Peach, Strawberry Lemonade, and Blueberry Mojito. Each can contain 10 mg of CBD, aimed at providing stress relief and relaxation without a psychoactive effect. This launch aligns with their goal of promoting wellness through enjoyable, accessible products. G&Juice markets these beverages primarily in the United States, with plans for global distribution expansion.

Gaia Botanicals, LLC, now known as Bluebird Botanicals, specializes in full-spectrum hemp extracts and CBD oils. Their focus extends to fostering wellness through responsibly sourced products, which include CBD capsules, oils, and pet products. Gaia Botanicals emphasizes quality control and transparency, providing batch-tested products to ensure purity and potency, catering to consumers seeking reliable and effective CBD products.

General Cannabis is making strides in the CBD market, though specific information about its direct involvement in the CBD water sector isn’t readily available. General Cannabis primarily operates as a comprehensive service provider to businesses in the cannabis industry, including security, marketing, and operational consulting, which could indirectly support entities within the CBD water market as they scale operations and navigate regulatory environments.

HempMeds is actively involved in the CBD market, offering a variety of CBD-infused products including oils and topicals. Their approach emphasizes quality and consumer safety, providing lab-tested, high-quality CBD products. HempMeds focuses on harnessing the therapeutic properties of CBD to support overall health and wellness, which aligns with the growing consumer interest in health-oriented beverages and other CBD-infused products.

Koios Beverage Corp. has been actively developing a line of CBD-enhanced functional beverages under its Fit Soda™ brand. They are experimenting with broad-spectrum hemp extract cannabidiol (CBD) to enhance their existing nutritional stack, which already includes nutrients, amino acids, and electrolytes. The introduction of CBD aims to enhance the beverages’ health benefits, such as reducing inflammation, pain, and anxiety. Koios has adopted a cautious approach to launching CBD products, aligning product development with consumer trials and regulatory landscapes. The company plans a future release of these CBD-infused beverages once further testing and development are completed​.

K-Zen Beverages Inc. information was not directly available from the search, indicating that there might be limited publicly accessible information about their specific activities in the CBD water sector at this time. For companies like K-Zen that might not have widespread reports, checking directly on their corporate website or relevant press releases could provide the latest updates on their offerings and market activities.

Lagunitas Brewing Company has innovatively entered the cannabis beverage market with its product Hi-Fi Hops, an IPA-inspired, non-alcoholic sparkling water infused with THC and/or CBD. This drink reflects Lagunitas’ craft beer roots and explores the synergy between hops and cannabis, offering varieties with different THC and CBD concentrations. Available exclusively in California dispensaries, Hi-Fi Hops aligns with consumer interest in non-alcoholic, cannabis-infused alternatives that maintain the craft beverage aesthetic.

Mary’s Medicinals specializes in pharmaceutical-grade cannabis products for both medical and wellness applications. They have developed a range of products, including transdermal patches, gels, and compounds, designed to deliver cannabinoids like CBD directly through the skin. While specific details on CBD water products were not detailed, the company’s expertise in creating targeted, formulaic cannabis solutions highlights their commitment to innovation and quality in the cannabinoid-based product market.

NewAge Inc. has been active in expanding its CBD beverage offerings under its Marley brand, with products like CBD-infused shots, leveraging licensing agreements to push into global markets, including the U.S. as regulations allow. Notably, NewAge launched a product named Noni+CBD in Japan, marking a significant step as it was the first CBD beverage approved for sale in Japan by the Japanese Ministry of Health. This product combines Noni juice with CBD, aimed at offering health benefits such as improved wellness and stress reduction.

Phivida Holdings Inc. focuses on the production and distribution of CBD-infused beverages and other CBD products. Their offerings include a variety of CBD-infused drinks, which are marketed towards health-conscious consumers looking for alternatives to traditional health and wellness products. Phivida’s approach emphasizes not only the health benefits of CBD but also the importance of integrating these products into a holistic lifestyle, catering to a demographic interested in natural health products.

Puration is actively involved in the CBD water market, notably through its EVERx CBD Sports Water. The company has been focusing on enhancing its distribution network and marketing strategies to strengthen its position in the rapidly growing CBD-infused beverage sector. They aim to provide distinct health benefits targeting the sports and fitness communities, promoting recovery and hydration through their CBD-infused products.

Spring has made significant strides in the CBD beverage market with its CBD-infused sparkling beverages. Established in 2015 and based in California, Sprig specializes in creating refreshing, low-calorie, and naturally flavored sparkling CBD beverages. The company has positioned itself as a leader in the U.S. market, emphasizing quality and consistency with each batch being carefully crafted and lab-tested. Sprig’s products are widely distributed, making it one of the most accessible CBD drink options in the United States.

Conclusion

The CBD Water market is rapidly evolving, driven by increasing consumer awareness of health and wellness and the therapeutic potential of CBD. This sector is navigating through challenges such as regulatory ambiguities and quality control issues, yet it continues to expand with innovations in flavor, product diversification, and packaging aimed at enhancing consumer appeal and accessibility. Companies are aggressively pursuing market expansion strategies, including geographical diversification and strategic partnerships, to capitalize on the growing demand for CBD-infused products. As regulations become clearer and consumer acceptance widens, the CBD Water market is poised for significant growth, promising substantial opportunities for both existing players and new entrants in the industry.

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