After the Thai government approved the commercial use of hemp, effective from March 29, 2021, downstream industries have welcomed the decision and accelerated the planning of utilization and development of value-added products utilizing hemp. In particular, the food and beverage market has begun to introduce certain parts of hemp allowed by the authorities as ingredients in a variety of food and beverage, which will boost sales from customers seeking hemp cookies, hemp ice cream, hemp tea and other exotic products. However, business operators need to be licensed and regulated by government agencies. KResearch expects that hemp will be extensively used in downstream industries in the fourth quarter of 2021.
The non-alcoholic beverage industry is one of the hemp downstream industries that need to be paid attention to as the popularity of the functional drinks market in 2021 may grow more than the overall beverage market. The intention behind the launch of functional drinks is to capitalize on the health-conscious trend and to cater to the demand for beverages that meet specific needs, such as vitamin beverages and natural extracts beverage. This has led beverage operators to seek business opportunities in the development of cannabidiol (CBD) infused drinks, which use CBD extracts that have various properties such as relieving insomnia and reducing anxiety as ingredients in tea, coffee, herbal drinks, fruit juice and other beverages. Such beverages have shown a good growth trend in the world market, whose main markets are in the US, Canada, the UK and China, etc.
In the initial stage of developing the CBD beverage market, operators first need to establish market awareness, such as launching hemp extract flavored beverages or beverages with soothing effects similar to CBD extracts. KResearch predicts that if hemp-derived CBD is more widely used, then the total market value of the non-alcoholic beverage of hemp CBD extract will reach THB2 billion in 2022, and it will increase to around THB2.5 billion in 2026, with a compound annual growth rate (CAGR) of 5.7% during 2022 to 2026. Hemp beverages will grow substantially in 2026, which is a preliminary time frame that may allow the import of raw materials or hemp extracts, leading to an openness in procuring sufficient raw materials and may attract new participants into the hemp beverage market. However, the future of this new branch of beverage still depends on the responsiveness of the market. The aforementioned total market value is only a preliminary estimate, and it is still necessary to continue to track and evaluate the market situation in the future.
KResearch expects that many beverage operators will take advantage of the government’s promotion of hemp as a new cash crop by launching hemp beverage products to meet consumers’ needs, which may help boost sales in the initial stage. But, from a long-term perspective, continued marketing still depends on various factors, such as the development of appropriate product formulas that meet the requirements of the Ministry of Public Health issued under the Food Act which stipulates that the CBD content must not exceed 3.0 mg/kg. In addition, there are also issues with the adequacy of raw materials in the initial stage and the cost of CBD essential oil that is currently priced at no less than THB100,000 per kilogram and may rise during the initial stage when there is still a small supply of CBD in the market. These mentioned factors will challenge operators in cost management to ensure that hemp beverages are more competitive in price and able to compete with other beverages, as well as to stimulate consumers’ purchase decisions while their purchasing power has not fully recovered.
Scan QR Code
This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.