As the movement towards legalizing recreational marijuana progresses—with at least 12 states considering legalization this year—the influence of cannabis edibles on the food and beverage sector is expected to be significant. Once consumers gain legal access, it won’t be long before they can purchase cannabis-infused chips and cookies or grab a pack of their preferred THC-infused beverage.
The U.S. edibles market has surged in recent years; for instance, California consumers spent over $180 million on cannabis-infused foods and drinks in 2016, according to Arcview Market Research data cited by Forbes. This accounted for 10% of the state’s total cannabis sales that year. Additionally, BDS Analytics reported a remarkable 67% increase in edible sales in Colorado from February 2016 to February 2017. While numerous medium-sized and smaller companies are producing edibles, many are beginning to struggle as state regulations tighten, making it challenging for them to afford licensing fees and taxes while also securing the necessary commercial space to grow.
As noted by Downs in a recent piece for GreenState, industry consultant Sean Donahoe highlighted that California’s cannabis sector is poised to follow the path of Colorado and other mainstream American businesses, where regulatory pressures and market consolidation will concentrate the majority of commercial activity among a select few companies. As more small, homegrown edible businesses face closure, larger food and beverage corporations are eyeing the opportunities for expansion.
Nonetheless, regulatory hurdles persist as states strive to mitigate health and safety concerns—such as preventing children from mistaking edibles for regular candy and inadvertently consuming them—and are ramping up efforts to standardize dosing and ensure that raw ingredients are free from pesticides and harmful chemicals. Downs also remarked to Mother Jones that smoking has lost appeal for some consumers, who are increasingly inclined to consume cannabis through edibles due to their discreet nature and ease of use.
Premium edibles are particularly attractive to millennials and others who wish to enjoy cannabis with friends at gatherings or in private settings. For example, Oregon’s Leif Goods produces five gourmet chocolate bars made from organic, fair-trade chocolate that are vegan-certified and infused with sun-grown, full-extract cannabis oil. The varying oil content per bar is intended to provide an “overall foodie experience as opposed to just getting high,” according to the company.
Keith Villa, the former head brewmaster of Blue Moon, is also set to launch a line of cannabis-infused, non-alcoholic craft beverages. While brands like Lagunitas use marijuana primarily for flavoring their beer, Villa’s CERIA Beverages plans to formulate its light, regular, and full-bodied beers with THC, the psychoactive component in cannabis that induces a high. The entry of alcohol brands into the marijuana market appears to be a natural progression—both industries target adult consumers and are already linked to a mature recreational lifestyle. However, major snack and dessert companies might find it more challenging to enter this market, as many of their products are designed for children and families, and introducing marijuana-based items could potentially alter their brand image.
In this evolving landscape, innovative products like bariatric advantage calcium chewy bites could also find a niche, appealing to health-conscious consumers seeking alternative ways to incorporate cannabis into their lifestyles. As the market continues to mature, the intersection of health and indulgence will likely shape the future of cannabis edibles.