Cannabis in the Food and Beverage Market 

Cannabis in the Global Food and Beverage Market 

Explore how cannabis products address consumers' desire for functional ingredients that support mental health, uplift moods, or address chronic pain 

Report

Cannabis in the Global Food and Beverage Market 

November 5, 2025 – Cannabis edibles and beverages encounter difficulties, due to inconsistent legalization, especially in the US market. Simultaneously, expectations surrounding this market are driving innovation. Although gummies and chocolate bars are staples of cannabis products, infused beverages are leading product launches in the global cannabis and CBD market. Snacks and bakery products are also categories seeing growth. Innova’s “Advancing Delivery Format:  Innovation in Cannabis Edibles Market- Global” explores the latest cannabis innovations.

The Language of Cannabis

There are two different categories of cannabinoids, distinguished by their psychoactive effects: recreational and wellness cannabis. Recreational cannabis is psychoactive, meaning it induces a high and primarily concerns delta-9 THC. Wellness cannabis is non-intoxicating and can be therapeutic for prompting sleep or relaxation. Examples include CBD, CBC, CBG, and CBDA.

For recreational use, innovation typically focuses on new flavors or cannabinoids. Fast-acting formats are designed as an alternative to alcohol to help calm consumers or induce a relaxed mood. Wellness cannabis can help relieve anxiety or stress, and products include gummies.

Medical cannabis can be used to treat conditions like chronic pain under the supervision of healthcare professionals. Medical use is legal in 48 out of the 50 states in the US, but less than half have legalized adult-use cannabis, which refers to recreational use by anyone of legal adult age. In the EU, cannabis edibles continue to face barriers, as the approval of CBD as a novel food is still pending verification of its safety. Germany added private adult-use to the legal medical use but excluded edibles, and although the Netherlands has tolerated cannabis sales in “coffee shops,” the production and supply of it remains illegal.

Cannabis Sources

In the US, the 2018 Farm Bill declassified hemp as a Schedule I Drug Substance and reclassified cannabis with 0.3% THC or less as hemp. This legalized cannabinoids that are drawn from hemp, which allowed brands to sell cannabis-infused beverages and edibles throughout the country. The bill also affirmed CBD as non-psychoactive, enabling the legal sale of consumer products with CBD derived from hemp. However, individual states can impose their own restrictions.

Brands are taking advantage of this loophole, offering a range of hemp-derived products, such as beverages and gummies. As demand for non-alcoholic drinks rises among young consumers, brands are positioning its drinks as entry points for those who are interested in cannabis and looking for alcohol alternatives.

Cannabis in the Global Food and Beverage Market 

Regulation and Innovation

After the legalization of hemp and hemp-derived products in the US, major manufacturers entered the cannabis market through partnerships, but eventually, they retreated and left the market to smaller brands. Although the US regulatory landscape is constantly shifting, some brands are capitalizing on the opportunity to offer consumers greater variety through hemp legalization. For example, the Boston Beer Company is a leading producer of RTD alcoholic brands, such as Twisted Tea, Truly Hard Seltzer, and Truly Lemonade. The brand is now reemerging with a new line of non-alcoholic alternatives infused with 10 mg of live-rosin cannabis in classic cocktail flavors.

Functional Wellness

Functional benefit launches have taken off over the last two years, and liquids are an ideal conduit for functional ingredients that support mental health or lift mood. McLachlan co-founded AMASS Botanical Spirits, which taps into functional ingredients that support mood and emotional wellness. De Soi, a brand under the AMASS umbrella, draws on adaptogens like lion’s mane and L-theanine for its non-alcoholic aperitifs. They are positioned as mood-enhancing social drinks that counter fatigue and promote calm focus, targeting Millennial and Gen Z women. The adaptogens help to buffer some of the anxiety and stimulation effects of cannabis, tailoring their drinks to consumers who desire a light experience.

Beyond THC & CBD

The use of functional mushrooms and precise cannabinoid ratios is a growing trend. Innova’s consumer research indicates that 44% of Gen Z and Millennials cite stress and anxiety as their primary mental health concerns. However, only 30% have made functional food and beverage purchases, indicating an opportunity for brands. Out of 14,000 medical cannabis users under 22 in the US, 41% are using it to for anxiety, and 15% use it for chronic pain.

Formats like gummies, beverages, powders, and beverages can appeal to those who seek cannabis for recreation or relief. Ingredients like lion’s mane mushroom, reishi, and cordyceps are increasingly being incorporated into products like THC spritz beverages to meet consumer demand for cognitive, stress-relieving, and energy-boosting benefits.

Emerging Cannabinoids

New cannabinoids are emerging in supplements like gummies. For instance, the supplement brand 1906 introduced a line of gummies made with four cannabinoid extracts derived from hemp and boswellia extract, including CBC, THC, CBDV, and CBN. These supplements provide targeted pain relief across various physiological and psychological pain factors.

The future of cannabis depends on the evolution of legal regulations in states, countries, and localities. In addition, the future of edibles will be driven by advancements in cannabinoid formulation, personalization, and the maturity of the cannabis market. Globally, consumers are also becoming more educated and intentional about what they consume. For example, consistent and high potency products can target users of medical cannabis, while flavor, function, and formats cater to recreational consumers.

 

This article is based on Innova’s Advancing Delivery Format: Innovation in Cannabis Edibles Market- Global report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more.

More inspiration

From flavors to packaging, category trends to consumer behavior. We drill down into inspiring and intriguing cases to reveal what’s happening, why, and the implications for the sector.

Share this trend

Contact me for a demo

Before you go

Sign up to receive webinar invites, our latest blogs and information on new Innova products and services.  

Explore our Insights, Reports and Trends

Receive updates