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Hemp beer is a unique category of craft beer infused with elements of the cannabis plant. Unlike traditional brewing, which relies solely on grains, hemp beer incorporates hemp seeds, oils, or extracts to introduce distinct flavors and aromatic profiles. Importantly, hemp beer does not contain THC (tetrahydrocannabinol), the psychoactive compound in cannabis, ensuring legal compliance in most markets. However, some variants incorporate CBD (cannabidiol), a non-psychoactive component believed to offer relaxation benefits.
The global hemp beer market was valued at US$ 245.6 million in 2024 and is projected to reach US$ 425.8 million by 2030, growing at a CAGR of 9.6% during the forecast period.
The United States hemp beer market, a key regional player, was valued at US$ 85.4 million in 2024 and is expected to reach US$ 152.6 million by 2030, with a slightly higher CAGR of 10.2%.
The rising demand for specialty and craft beers, along with evolving consumer preferences for unique flavors and healthier alcoholic beverages, is fueling market expansion.
Drivers
Growing Popularity of Craft Beers – The craft beer industry accounts for approximately 72% of hemp beer sales, with brewers innovating to offer distinct and premium-quality beverages.
Health-Conscious Consumer Trends – Hemp-infused beer is perceived as a healthier alternative due to its lower calorie content and potential wellness benefits associated with CBD-infused variants.
Regulatory Advancements – Legalization of hemp-derived products in various countries is paving the way for expanded production and distribution.
Flavor Innovation – The addition of hemp imparts earthy, nutty, and slightly bitter notes, which appeal to experimental consumers seeking novel drinking experiences.
Restraints
Regulatory Compliance Issues – The legal landscape for hemp-infused beverages varies by region, creating hurdles for manufacturers looking to expand globally.
Consumer Skepticism – Despite growing popularity, misconceptions about hemp and cannabis-based products persist, limiting wider adoption.
Higher Production Costs – Specialized ingredients and quality assurance testing increase production costs, impacting profitability for small brewers.
Opportunities
Product Diversification – Brands can explore new formulations, such as THC-infused beers where legally permitted, to attract niche markets.
E-Commerce Expansion – Online retail and direct-to-consumer sales channels offer significant growth potential, particularly in regions with fewer brick-and-mortar specialty beer outlets.
Strategic Partnerships – Collaborations between craft breweries and cannabis companies can enhance product development and market reach.
Challenges
Supply Chain Constraints – The availability of high-quality hemp ingredients is limited in some regions, potentially affecting production volumes.
Marketing Restrictions – Regulatory guidelines often limit advertising opportunities, requiring brands to rely on grassroots and word-of-mouth marketing.
North America
North America dominates the hemp beer market, accounting for approximately 55% of global sales. The United States, with its progressive craft beer scene and evolving cannabis regulations, is the leading contributor. Canada follows closely, benefiting from full-scale cannabis legalization.
Europe
Europe is witnessing increasing interest in hemp-infused beverages, with Germany, the UK, and France leading the trend. The region's strong craft beer culture and emphasis on organic ingredients make it an attractive market for hemp beer producers.
Asia-Pacific
Although in the early stages, the Asia-Pacific market is gaining traction, particularly in Japan and South Korea, where functional beverages are popular. However, strict cannabis-related regulations pose a barrier to expansion.
South America
Brazil and Argentina are emerging markets for hemp beer, with a growing number of craft breweries experimenting with hemp-infused formulations.
Middle East & Africa
This region remains a niche market due to stringent regulations on cannabis-derived products, limiting hemp beer's commercial potential.
Key players in the hemp beer industry include both established beverage companies and niche craft brewers:
Canopy Growth Corporation – A leader in cannabis-infused beverages, expanding into hemp beer.
Heineken – Through its Lagunitas brand, exploring cannabis-related beverage opportunities.
Sprig – Specializing in CBD-infused drinks.
Phivida Holdings – Focuses on functional hemp-based beverages.
Two Roots Brewing – A pioneer in alcohol-free THC and CBD-infused craft beers.
Flying Dog Brewery – Experimenting with hemp-infused beer styles.
AB InBev – The world's largest beer company, testing cannabis-infused drinks through partnerships.
CBD-Infused Beer – This segment dominates due to its legal status in many regions and consumer perception of health benefits.
THC-Infused Beer – Restricted to markets where cannabis is fully legalized, offering psychoactive effects alongside traditional beer enjoyment.
Offline Channel – Traditional retail stores, bars, and craft breweries account for the majority of sales.
Online Channel – E-commerce platforms are experiencing rapid growth, particularly for CBD-infused variants.
Canopy Growth Corporation
Heineken
Sprig
Phivida Holdings
CERIA
High Style Brewing
Two Roots Brewing
Flying Dog Brewery
Keef Brand
Coalition Brewing
Dupetit Natural Products
AB InBev
Green Times Brewing
HEMPER
North America (USA, Canada, Mexico)
Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
South America (Brazil, Argentina, Columbia, Rest of South America)
Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)
1. What is the current market size of the hemp beer industry?
2. Which are the key companies operating in the hemp beer market?
3. What are the key growth drivers in the hemp beer market?
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