CBD Beverages in New York

What Are CBD Beverages?

CBD beverages are drinks infused with cannabidiol (CBD), a naturally occurring compound found in cannabis plants. Unlike THC (tetrahydrocannabinol), the other well-known compound in cannabis, CBD is not psychoactive, meaning it doesn’t produce the “high” associated with marijuana. 

These beverages range from non-alcoholic options like water, tea, and coffee to alcoholic variants. They may also include additional beneficial ingredients like vitamins or adaptogens to enhance health and wellness.

Why Are CBD Beverages Gaining Popularity in New York?

1. Health and Wellness Trends: In the wake of the COVID-19 pandemic, there’s been a significant increase in the public’s interest in personal health and wellness. CBD, with its potential to treat various ailments like anxiety, insomnia, and chronic pain, has become a popular ingredient in consumer products, including beverages.

2. Market Growth: The CBD beverage market has shown remarkable growth. It was valued at $3.22 billion in 2022 and is estimated to soar to $46.22 billion by 2032, registering a CAGR of 28.7%. This growth is attributed to CBD’s positive effects when added to beverages, such as reducing anxiety, managing pain, aiding relaxation, and assisting with sleep.

3. Innovative Product Offerings: The CBD drinks market in New York offers a variety of innovative products. For instance, products like the Five Sipz CBD-Infused Craft Seltzer and Vena Happy Place THC Infused Seltzer offer consumers a buzz without the hangover typically associated with alcoholic beverages. Moreover, options like Miraflora’s sports drinks provide additional benefits like electrolytes and antioxidants, catering to the active lifestyle of consumers.

4. Technological Advancements: The incorporation of CBD in beverages has been refined through advancements in technology. Water-soluble emulsions have become the preferred method for infusing CBD into drinks, offering superior bioavailability and shelf stability compared to CBD oil.

5. Flavor and Quality Improvement: The formulation of CBD beverages has improved significantly, addressing previous challenges like the earthy taste and chalky texture of CBD. The use of natural flavors, terpenes, and quality CBD isolates has enhanced the taste and overall drinking experience.

6. Market Dynamics in New York: Despite initial challenges and regulatory hurdles, the New York market has shown strong sales and potential growth in the cannabis sector, including CBD beverages. With an expectation to reach $1.3 billion in total sales in 2023, New York is poised to become a top market in the US for cannabis and CBD-related products.

In summary, the rise of CBD beverages in New York is driven by increasing health consciousness, market growth, product innovation, technological advancements in CBD infusion, and the improvement in flavor and quality of these drinks. This trend is part of a larger shift towards wellness-oriented consumer products and represents a significant market opportunity.

How Are CBD Beverages Regulated in New York?

In New York, the regulation of CBD beverages is primarily managed by the Office of Cannabis Management (OCM). This office oversees the comprehensive regulation of cannabinoid hemp products, including CBD beverages. The regulatory framework covers manufacturing standards, laboratory testing, and packaging and labeling standards to ensure consumer safety and product quality.

Key aspects of these regulations include:

• Manufacturing Standards: Products must be manufactured using Good Manufacturing Practices (GMP) specific to their product form.
• Laboratory Standards: Products must undergo testing by accredited laboratories for a full panel of analytes, including cannabinoid profile, heavy metals, and pesticides.
• Packaging and Labeling Standards: Labels must include a nutritional or supplement fact panel, a list of all ingredients, total cannabinoids per product/serving, QR code or link to Certificate of Analysis, and required warnings for consumers.

Additionally, New York has introduced a new concept of provisional licenses, allowing potential business owners to secure preliminary approval without large capital outlays. These licenses provide a pathway for middle- and low-income applicants to enter the market with reduced upfront costs.

Who Are the Key Producers of CBD Beverages in New York?

In the vibrant landscape of New York’s CBD beverage market, several key producers are making their mark:

1. Cann: Founded in 2019, Cann has established around 50 retail partnerships in New York, signaling its significant presence in the state’s CBD market. This brand offers a range of hemp-derived beverages, which are available through its website, in bodegas, and specialty shops. Cann’s products represent a blend of wellness and social drinking appeal, catering to a diverse consumer base.

2. Cloud Water: Launched in 2019, Cloud Water is a New York-based company known for its flagship line of CBD-infused beverages. The brand has expanded its offerings to include the Cloud Water +Immunity line. This expansion has opened doors in conventional retail channels and is expected to drive significant revenue growth. Cloud Water has leveraged direct-to-consumer sales effectively and has formed distribution partnerships with CBD-friendly houses like Big Geyser in New York.

3. Hillview: Hillview, a New Jersey-based hemp and marijuana producer, has made inroads into the New York CBD market through a strategic partnership with the Pepsi-Cola Bottling Co. of New York. This collaboration has enabled Hillview to distribute its Kaló-branded CBD-infused seltzers across New York City grocery stores, convenience stores, and bodegas, covering all five boroughs plus Long Island and Westchester.

These companies are part of a growing and dynamic sector, each contributing to the diversity and accessibility of CBD beverages in New York. They showcase innovation and adaptability in a market that continues to evolve rapidly.

What Types of CBD Beverages Are Available in New York?

New York offers a diverse range of CBD beverage options. These include:

• Non-alcoholic beverages like CBD-infused water, tea, coffee, and sports drinks.
• Alcoholic CBD beverages, although these are less common due to regulatory restrictions.
• Specialty beverages, including craft seltzers and functional drinks designed to provide specific health benefits like relaxation or improved focus.

The availability of these beverages has been influenced by recent regulatory changes that allow for more flexibility in product forms, including the removal of shelf-stable requirements and adjustments in THC concentration limits. This regulatory environment supports innovation and diversification in the types of CBD beverages available to consumers in New York.

Who Is the Target Market for CBD Beverages in New York?

The target market for CBD beverages in New York is broad and diverse, reflecting the city’s eclectic population. This market primarily consists of health-conscious consumers who are interested in the wellness benefits of CBD. These consumers are drawn to CBD beverages as they offer a convenient and enjoyable way to incorporate CBD into their daily routines. The growing popularity of CBD in various forms, including beverages, is largely driven by an increased focus on personal health and wellness, particularly in the wake of the COVID-19 pandemic.

Moreover, the market includes individuals seeking alternatives to traditional alcoholic beverages. CBD-infused drinks offer a way to enjoy a relaxing or social beverage without the effects of alcohol. This aspect of CBD beverages appeals to those interested in low-ABV (alcohol by volume) drink options, offering a mood-enhancing experience without the adverse side effects associated with alcohol. This shift is part of a larger trend towards healthier drinking options, as evidenced by the growth of the no/low alcohol market in the US.

Why Do Consumers in New York Prefer CBD Beverages?

Consumers in New York prefer CBD beverages for several reasons:

1. Health Benefits: CBD is known for its calming and sedative effects, and unlike THC, it is not psychoactive. This makes CBD beverages appealing to those looking to enjoy the benefits of cannabis without intoxication. Consumers are increasingly aware of CBD’s potential in treating various ailments such as anxiety, insomnia, and pain, making CBD beverages a popular choice among health-conscious individuals.

2. Convenience: Ready-to-drink (RTD) CBD beverages provide a simple and convenient way for consumers to enjoy the benefits of CBD. This ease of use is attractive to those who prefer not to commit to more long-term or expensive methods like tinctures and oils.

3. Unique Niche in Beverage Selections: CBD beverages have carved out a unique niche in the market, particularly among those who enjoy bold flavors found in hoppy beers and cocktails. The unique flavor profile of hemp, combined with the mood-enhancing properties of CBD, offers an appealing alternative to traditional alcoholic beverages.

4. Legalization and Availability: The federal legalization of hemp farming has made CBD more widely available, allowing major beverage companies and smaller wellness-oriented brands to explore this market. This has led to a wide variety of CBD beverage formats and flavors, catering to diverse consumer preferences.

The target market for CBD beverages in New York is diverse, encompassing health-focused individuals, those seeking alcohol alternatives, and consumers interested in the unique properties of CBD. The preference for CBD beverages in this market is driven by their health benefits, convenience, unique position in the beverage industry, and increased availability following hemp legalization.

Where Can You Buy CBD Beverages in New York?

In New York, CBD beverages can be found in a variety of retail settings, catering to diverse consumer preferences. Here are some key places where you can purchase CBD beverages:

1. Licensed New York City Dispensaries: Some CBD beverage brands like Cann are available at licensed dispensaries in New York City. These dispensaries provide a range of cannabis and hemp-derived products, including CBD beverages.

2. Specialty Shops and Bodegas: Brands like Cann also distribute their hemp-derived products to bodegas and specialty shops across New York. These locations often target specific consumer segments, such as wellness enthusiasts or those looking for non-alcoholic drink options.

3. Online Retailers: Many CBD beverage brands offer their products online, allowing consumers to order directly from their websites. This option provides access to a wider variety of products and brands. For example, brands like Five Sipz CBD-Infused Craft Seltzer and Vena Happy Place THC Infused Seltzer can be purchased online and shipped to all 50 states.

4. CBD Specialty Stores: Various CBD specialty stores across New York City offer a range of CBD products, including beverages. These stores often provide additional services, like product testing facilities and educational sessions, to help consumers make informed choices.

5. CBD Coffee Shops: For those interested in CBD-infused coffee, numerous cafes in New York City offer CBD lattes and other coffee drinks infused with CBD. These cafes provide a unique way to enjoy CBD beverages in a social setting.

How Do Consumers Choose the Right CBD Beverage?

Choosing the right CBD beverage involves considering several factors to ensure the product aligns with personal preferences and needs:

1. CBD Content and Quality: Look for products that clearly state the CBD content and are third-party tested for quality assurance. This ensures that you are consuming a safe and reliable product.

2. Flavor Profile: Consider the flavor of the beverage. CBD beverages come in various flavors, from fruity seltzers to more traditional coffee and tea options. Select a flavor that appeals to your taste preferences.

3. Intended Effects: Different CBD beverages may offer different effects, such as relaxation or energy. Choose a product that aligns with the desired outcome you’re looking for.

4. Dietary Requirements: If you have specific dietary needs, such as low-calorie or vegan options, look for products that meet these criteria. Many CBD beverages are designed with health-conscious consumers in mind.

5. Brand Reputation: Research the brand to understand its reputation in the market. Look for brands with positive reviews and a track record of customer satisfaction.

6. Price and Accessibility: Consider the price and how easily you can purchase the product, whether in-store or online.

By taking these factors into account, consumers can make an informed decision and choose a CBD beverage that best suits their preferences and lifestyle.

Economic Impact of CBD Beverages in New York

The economic impact of CBD beverages in New York is significant and growing. With the increasing legalization and acceptance of cannabis and its derivatives, the market for CBD beverages is expanding rapidly. BDSA predicts that the total legal cannabis sales in New York will reach approximately $1.3 billion in 2023 and are expected to grow to around $2.7 billion by 2027. This growth places New York among the top five US cannabis markets by dollar sales.

The CBD beverage market specifically has been experiencing a substantial increase. As of 2022, the CBD beverage market was valued at $3221.0 million and is estimated to soar to $46221.8 million by 2032, registering a significant compound annual growth rate (CAGR) of 28.7%. This growth is driven by the rising demand for functional beverages, including both alcoholic and non-alcoholic options infused with CBD.

Influence on Lifestyle and Culture in New York

CBD beverages have also influenced the lifestyle and culture in New York in several ways:

1. Health and Wellness Trend: The growing awareness of the health benefits of CBD is driving the market for CBD beverages. Consumers are increasingly seeking products that offer therapeutic properties such as pain relief, anxiety reduction, and improved sleep. This shift towards wellness-oriented consumption is evident in the popularity of CBD-infused beverages like energy drinks and cold-brew coffees.

2. Social Drinking Alternatives: CBD beverages are emerging as a popular alternative to traditional alcoholic drinks. Brands like Cann are positioning their products as low-calorie, hangover-free options that can replace hard seltzers and cocktails. This trend is part of a broader movement towards healthier and more responsible social drinking habits.

3. Regulatory Adaptation and Market Dynamics: The CBD beverage market in New York is adapting to the state’s regulatory environment. Companies like Cann have to navigate the complexities of state-by-state compliance and find retail partners willing to carry their products. Despite these challenges, the sector is eager to expand and compete with the alcohol industry, albeit at a slower pace due to the unique regulatory landscape.

The impact of CBD beverages in New York is multifaceted, contributing to economic growth, shaping consumer health and wellness trends, and offering a new dynamic to the culture of social drinking. The market’s potential continues to grow as both consumers and businesses adapt to the evolving regulatory and cultural landscape.

How Do CBD Beverages Compare to Traditional Beverages in New York?

CBD beverages in New York are carving out a unique space within the broader beverage market, differentiating themselves from traditional beverages in several key ways.

Comparability to Alcoholic Drinks: CBD beverages are increasingly being seen as viable alternatives to alcoholic drinks. They offer similar social drinking experiences but without the alcohol content. This aligns with the trend of consumers seeking healthier alternatives to traditional alcoholic beverages. For example, the cannabis beverage brand Cann has seen significant growth, positioning its products as low-calorie, hangover-free options that can serve as substitutes for traditional alcoholic drinks like hard seltzers and cocktails.

Health Benefits and Effects: CBD beverages are often chosen for their potential health benefits. They are believed to provide relaxation and stress relief without the intoxicating effects of alcohol. CBD beverages can contain ingredients like American ginseng and L-theanine, which are curated for relaxation, offering a mellow effect similar to a strong cocktail but without alcohol.

Market Growth and Acceptance: The market for CBD beverages is growing rapidly, with products like sparkling waters, seltzers, and sports drinks containing CBD. This growth is part of a broader acceptance of CBD and hemp-derived products, with the stigma around these products diminishing due to their legalization on a national scale. CBD is seen as a beneficial addition to beverages, offering a unique dimension to the drinking experience.

Flavor and Diversity: CBD beverages are available in a variety of flavors and forms, from sparkling waters and seltzers to non-alcoholic cocktails. These beverages are often designed to incorporate the flavor of CBD into the overall taste profile, making them an appealing choice for consumers looking for novel beverage options.

Regulatory Landscape: The rise of CBD beverages is closely tied to the evolving regulatory landscape surrounding cannabis and hemp products. Brands like Cann have had to navigate complex state-by-state regulations, influencing their distribution strategies and product availability. This contrasts with the more established regulatory framework for traditional alcoholic beverages.

CBD beverages in New York offer a unique alternative to traditional beverages, particularly alcoholic drinks. They cater to health-conscious consumers and those looking for non-intoxicating, relaxing beverage options. The growing acceptance and legalization of CBD and hemp products have facilitated the expansion of this market, although regulatory challenges persist.

What Challenges Do CBD Beverage Producers Face in New York?

1. Regulatory Landscape: CBD beverage producers in New York face a complex legal environment. The CBD market has been rapidly evolving since the passage of the 2018 Farm Bill, which legalized hemp CBD for use in non-food items at the federal level. However, the market still navigates a gray legal landscape, particularly with regards to CBD in food and beverage products.

2. Market Saturation and Competition: With the rising popularity of CBD beverages, the market is becoming increasingly saturated. This saturation leads to stiff competition among producers, making it challenging for new entrants to establish a foothold and for existing players to maintain their market share.

3. Distribution Challenges: Companies like Cann, which produces cannabis beverages, have encountered distribution challenges due to laws against cross-state distribution. This limitation means that they need to find ways to produce and package their products within the state they wish to sell. Such restrictions can limit market reach and add logistical complexities.

4. Financial Constraints: Despite the potential for the Secure and Fair Enforcement (SAFE) Banking Act, which would protect financial institutions working with cannabis businesses, there is still financial uncertainty. The cannabis industry, including CBD beverage sector, often faces difficulties in securing funding and financial services due to the federal status of cannabis.

What Future Opportunities Exist for CBD Beverages in New York?

1. Market Growth: The CBD beverage market is expected to continue growing, driven by increasing consumer demand for health and wellness products. This growth presents a significant opportunity for producers to innovate and expand their product offerings.

2. Innovative Product Development: There is a scope for innovation in product development, especially in creating new flavors, formulations, and functional beverages that cater to a broad range of consumer preferences.

3. Expansion into New Markets: As regulatory frameworks evolve and become more favorable, there will be opportunities for CBD beverage producers to expand into new markets both within and outside New York.

4. Direct-to-Consumer Sales: Companies like Cann have found success with direct-to-consumer sales, which could be a viable strategy for other CBD beverage producers as well. This approach allows for greater control over branding and customer engagement.

5. Cultural Integration and Social Acceptance: As CBD beverages continue to gain social acceptance, there will be more opportunities for these products to become integrated into various aspects of lifestyle and culture, from social gatherings to wellness routines.

While there are significant challenges, the CBD beverage market in New York also presents numerous opportunities for growth and innovation. Producers who navigate the regulatory landscape effectively and respond to consumer demands can tap into this burgeoning market.

CBD Topicals

Can CBD Beverages and CBD Topicals Be Used Together?

CBD, or cannabidiol, has gained immense popularity in various forms, including beverages and topicals. The versatility of CBD allows it to be effective in both ingestible and topical forms. CBD beverages provide an easy and controlled way to consume CBD, often sought for relaxation, anxiety relief, and improved mood. On the other hand, CBD topicals are applied directly to the skin, targeting localized relief in areas like joints and muscles.

Using CBD beverages and topicals together can offer a comprehensive approach to wellness. When ingested, CBD beverages work internally to provide overall wellness benefits. Simultaneously, topicals work externally, offering targeted relief. This combination can be particularly effective for those seeking holistic approaches to manage stress, pain, and other conditions.

Why Might Someone in New York Choose CBD Topicals Over CBD Beverages?

The choice between CBD topicals and beverages often comes down to personal preference and specific wellness goals. In a bustling metropolis like New York, where the pace of life is fast and stress levels can be high, CBD topicals offer several advantages:

1. Targeted Relief: CBD topicals can be applied directly to areas of discomfort, such as sore muscles or joints, which is beneficial for those with active lifestyles or specific pain areas.
2. Discretion and Convenience: Topicals can be used discreetly and don’t require ingestion, making them convenient for on-the-go use without drawing attention.
3. No Ingestion Required: For those who prefer not to ingest CBD or are looking for immediate localized relief, topicals are an ideal choice.
4. Variety of Products: The market for CBD topicals in New York is diverse, offering creams, balms, and lotions, each catering to different preferences and needs.

In summary, the decision to use CBD topicals over beverages in New York may be influenced by the need for targeted, discreet, and convenient relief, tailored to the fast-paced and high-stress lifestyle of the city.

FAQs About CBD Beverages

Is it legal to purchase CBD beverages in New York?

Yes, it’s legal to purchase CBD beverages in New York. The state regulates hemp used or marketed for its cannabinoid content, such as CBD, under the New York State Office of Cannabis Management. This includes CBD products like tinctures, oils, topicals, pills, capsules, and food or beverages intended for human consumption.

Are there specific regulations for CBD beverages in New York?

CBD products, including beverages, must adhere to certain regulations. They must be manufactured using good manufacturing practices based on the product’s intended use. For instance, food and beverage products cannot contain more than 25mg of cannabinoids per product. Moreover, all cannabinoid hemp products are required to be laboratory-tested before entering the market, ensuring they meet standards for cannabinoid profile, heavy metals, microbial impurities, and more.

Can CBD beverages be combined with alcohol or tobacco in New York?

Current legislation in New York states that CBD should not be combined with alcohol or tobacco. Beyond this, CBD edibles and other products like beverages are available, but it’s important to ensure they are authentic and meet high standards, as the quality of CBD products can vary.

How can consumers ensure the quality of CBD beverages in New York?

Due to the lack of strict regulation in the quality of CBD products in physical stores, it is advisable to purchase CBD beverages from reputable online sources. Online platforms often provide detailed product information, third-party lab reports, and customer reviews, helping consumers make informed choices about the quality and authenticity of CBD products.

Are there age restrictions for purchasing CBD beverages in New York?

While the specific age restrictions for CBD beverages aren’t explicitly mentioned in the sources, retailers are prohibited from selling inhalable cannabinoid hemp products, like vape products, to consumers under 21 years of age. It’s reasonable to infer that similar age restrictions could apply to other CBD products, including beverages.

Can CBD beverages be purchased online in New York?

Yes, purchasing CBD beverages online is a viable option in New York. This method offers a wider variety of products and better quality assurance compared to in-store purchases.

Resources

https://cannabis.ny.gov/cannabinoid-hemp

https://cannabis.ny.gov/news/cannabis-control-board-approves-regulations-cannabinoid-hemp-program

https://www.modernretail.co/operations/with-the-market-heating-up-cannabis-beverage-brand-cann-launches-in-new-york/

https://finance.yahoo.com/news/cbd-based-beverages-market-size-140000744.html

https://www.globenewswire.com/news-release/2023/01/10/2585764/0/en/CBD-Beverage-Market-is-estimated-to-be-US-46-3-billion-by-2032-with-a-CAGR-of-28-7-over-the-forecast-period-2022-2032-By-PMI.html

https://bdsa.com/content/state-of-the-new-york-cannabis-market/

https://www.modernretail.co/operations/with-the-market-heating-up-cannabis-beverage-brand-cann-launches-in-new-york/

https://www.dimins.com/blog/2023/03/14/rise-cbd-beverage-industry/

https://www.cannabisbusinesstimes.com/news/new-york-releases-cbd-cannabinoid-hemp-regulations/