As the old Frank Sinatra song puts it: “Hey, drink up, all you people. And order anything you see. Have fun, you happy people. The drink and the laugh’s on me.”

While many investors have focused on traditional cannabis products such as flower, edibles, and concentrates, a surprising and often overlooked trend is poised to offer substantial profit gains: cannabis-infused beverages.

This niche market is emerging as a lucrative segment within the broader cannabis industry, driven by innovation, consumer preferences, and evolving regulatory landscapes. Early investors in this space should reap significant rewards as the market matures.

Cannabis beverages represent a fusion of the beverage industry and the cannabis sector, appealing to a broad spectrum of consumers.

This growth is propelled by increasing consumer interest in health and wellness, the decline in alcohol consumption among younger demographics, and the demand for innovative cannabis products.

One of the key drivers of the cannabis beverage market is the health and wellness trend. Many consumers are seeking alternatives to alcohol and traditional sugary drinks, and cannabis-infused beverages offer a unique solution.

These products often come in the form of low-calorie, low-sugar options infused with cannabidiol (CBD) or tetrahydrocannabinol (THC), providing a range of health benefits such as relaxation, stress relief, and pain management without the calories and hangovers associated with alcohol. The biggest growth will be in beverages infused with CBD.

CBD comes from the cannabis plant and it’s related to THC, but it’s not psychoactive, so it doesn’t make you “high” the way THC does. CBD confers many genuine health benefits (although the substance is often hyped by marketers).

According to a recent report by Market.us., in 2022 the global CBD beverages market was valued at USD 4.4 billion and it’s expected to reach around USD 34.4 billion by 2032. From 2023 to 2032, this market is estimated to register a compound annual growth rate (CAGR) of 23.5% (see chart).

The development of advanced infusion technologies has significantly improved the quality and appeal of cannabis beverages. Nanoemulsion technology, for example, allows for better bioavailability and faster onset times, making the effects of cannabis more predictable and manageable for consumers.

This technology breaks down cannabis oil into tiny particles that can be more easily absorbed by the body, resulting in beverages that act quickly and provide consistent effects. Such innovations are crucial for gaining consumer trust and expanding the market.

The regulatory environment for cannabis beverages is evolving, with more regions legalizing cannabis and establishing clear guidelines for its sale and consumption. In the United States, the passage of the Farm Bill in 2018 legalized hemp-derived CBD products, paving the way for a surge in CBD-infused beverages.

As more states and countries move towards legalization, the cannabis beverage market is expected to expand rapidly. For investors, the cannabis beverage market offers various opportunities. Here are some strategies to consider:

Investing in Established Companies. Investing in established cannabis companies that are expanding into the beverage market can be a relatively safe bet. These companies have the infrastructure, experience, and resources to develop and market cannabis beverages effectively.

Supporting Startups and Innovators. Emerging companies focused solely on cannabis beverages or related technologies can provide high-growth potential. Startups are often more agile and innovative, developing unique products and technologies that can disrupt the market. Investors can seek out these companies through venture capital funds or direct investments.

Investing in Ancillary Services. Companies providing the necessary technology and services for cannabis beverage production, such as infusion technology, packaging, and distribution, are also attractive investment targets. These ancillary businesses benefit from the overall growth of the cannabis beverage market without the risks associated with direct cannabis handling.

Diversification within the Cannabis Sector. Investors can diversify their portfolios by including a mix of traditional cannabis companies and those focused on beverages. This strategy spreads risk while positioning for growth across multiple segments of the cannabis industry.

Read This Story: The November Elections: A Watershed for Weed

A Note from John Persinos: Why are certain cannabis stocks jumping +1,000%? It has to do with seasonality…specifically, the U.S. presidential election.

It happens every four years. No matter who’s running for office. During the previous presidential election cycle, you had a chance to grab 569%… 1,020%… 2,426% and higher. Now it’s happening again, and you’ve no time to lose.

I’m the editorial director of Investing Daily. I’m also the editor-in-chief of our premium trading service Marijuana Profit Alert. To find the best cannabis stocks, you need to conduct due diligence.

The good news is, I’ve done the homework for you. For Marijuana Profit Alert, I’ve put together a portfolio of the best-of-breed marijuana equities. These holdings are poised to soar during this political season. If you’re fortunate enough to own these companies, you’ll reap a windfall.

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