Terpene‑Infused Beverages Are Emerging as a Compliant Alternative to Cannabis Drinks

Terpenes are the aromatic compounds that give many plants their signature scents, from bright citrus to sharp pine. They are also a major part of what makes different cannabis strains feel distinct because their aromas help shape the overall experience. That connection has made terpenes a natural fit for a new wave of functional beverage makers who are using botanical blends to build flavor, mood, and gentle effects without adding any cannabinoids or alcohol. As the category grows, these terpene‑infused drinks are emerging as a way to capture some of the sensory and functional qualities people enjoy about cannabis while offering something that stands on its own.

Terpenes Add Functional Effects to Beverages

Beverage makers commonly work with a familiar group of botanical terpenes that bring both flavor and function. Limonene is popular for its bright citrus profile and its association with an uplifted mood. Linalool adds a softer floral note that many people link with calm. Pinene adds a crisp, piney edge and is often associated with focus and mental clarity. Myrcene is known for its earthy depth and reputation for relaxation. Used in combination, these terpenes give formulators a flexible palette to build non‑alcoholic drinks that feel purposeful without relying on cannabinoids.

Eybna, an Israel-based R&D company, has evolved from developing cannabis terpenes to creating proprietary botanical terpene blends that deliver functional benefits in beverages by activating specific receptors for mood enhancement and relaxation without adverse effects.

Victoria Dang, the company’s director of marketing, says that “one thing that Eybna specializes in is the functionality of terpenes.” Using only botanical sources, the company develops terpene blends for functional beverages.

“We actually have a functional formulation called BUUZ, and it’s a mixture of 37 different terpenes that can provide one really great, uplifting, social feeling,” she explains in an online interview with IgniteIt.

Simplifying Compliance for Functional Drinks with Terpenes

With cannabis still subject to a patchwork of state regulations and the federal prohibition of cannabis, terpenes derived from other botanical sources can offer some of the benefits of cannabis while still offering a product that can be sold across state lines. It’s a niche that has been filled recently by popular hemp-based cannabinoid drinks, but a federal ban on such products is slated to go into effect later this year.

“The one really great thing about terpenes is that they’re completely compliant because they’re a natural ingredient,” says Dang. “Since ours are all botanically derived, they can be listed as a natural ingredient. You could go even further and list it as an essential oil, depending on the concentration of the terpene formulation.”

If the federal hemp products ban goes into effect, some beverage manufacturers are likely to pivot to terpene-infused drinks that offer some of the same benefits. For them to succeed, however, manufacturers will have to help consumers successfully navigate the change.

Dang says that terpene-infused beverages without THC or alcohol are “still a very new thing in the market, and consumers are still being educated about the functionalities of terpenes.” 

“Terpenes can come in and provide that social, uplifting, energizing feeling that alcohol does, where it activates the GABA receptors, serotonin receptors,’ she explains. “Terpenes can do the same thing. And so I think once more people are accustomed to terpene-infused beverages, they’ll really understand that this isn’t just providing a flavor alternative, but also that functional beverage alternative that people are still looking for.”

Azuca, a company known for its proprietary process for encapsulating cannabinoids for use in edibles, is also developing products for ready-to-drink (RTD) beverages.

“Azuca is actively working in the terpene-infused beverage space,” Kim Sanchez Rael, co-founder and CEO of the company, says in a written interview. “We’re applying our TiME INFUSION® process to terpene encapsulation, with the goal of enabling fast-onset, effects-driven RTDs where terpenes play a more central functional role.”

Sanchez Rael notes that the primary challenge in producing terpene-forward beverages is getting oil-based inputs to mix well in water, while maintaining a consistent, stable dispersion and predictable consumer experience over a product’s lifecycle, in a format that can be manufactured at scale. 

“That is the type of stability and performance problem TiME INFUSION® is designed to solve. This work is in active validation with a terpene supply partner, and we’re in ongoing formulation and partnership discussions with multiple terpene manufacturers as interest in effects-driven RTDs accelerates,” she explains. “As the beverage category matures, terpenes will move from being treated as flavor notes to being treated as functional inputs. But RTD is an unforgiving format. If oil-based ingredients don’t behave consistently in water, the consumer experience breaks. Our focus is making that performance predictable, stable, and scalable with TiME INFUSION®.”

As more companies refine their formulations and consumers grow familiar with what terpene blends can offer, these drinks are poised to fill a meaningful gap in the functional beverage space. They deliver mood, focus, and relaxation benefits without relying on cannabinoids or alcohol, and they do it with ingredients that fit cleanly within existing regulations. For brands navigating shifting hemp rules and for consumers seeking purposeful, non‑intoxicating options, terpene‑infused beverages offer a practical and promising option.