As the movement toward legalizing recreational marijuana progresses — with at least 12 states contemplating legalization this year — the influence of cannabis edibles on the food and beverage sector is poised to be significant. Once consumers gain legal access, it won’t be long before they can purchase cannabis-infused snacks like chips and cookies or grab a pack of their favorite THC-infused drinks.
The U.S. edibles market has surged in recent years, with California consumers reportedly spending over $180 million on cannabis-infused foods and beverages in 2016, according to Arcview Market Research data cited by Forbes. This figure accounted for 10% of the state’s total cannabis sales that year. Similarly, in Colorado, BDS Analytics noted a remarkable 67% increase in edible sales from February 2016 to February 2017.
While numerous medium-sized and smaller companies are producing edibles, many are beginning to disappear as state regulations tighten, making it increasingly difficult for them to afford licensing and taxes. Additionally, financing the commercial space necessary for growth has become a challenge. Downs discussed this issue on GreenState last week, stating, “According to industry consultant Sean Donahoe, California’s cannabis industry is likely to mirror Colorado and the broader American business landscape, where regulatory pressures and consolidation leave the majority of commercial activity in the hands of a few.”
As more homegrown edible businesses face elimination, larger food and beverage companies are eyeing the opportunity for expansion. However, regulatory hurdles persist as states aim to mitigate health and safety risks, such as children mistaking edibles for regular candy and inadvertently experiencing a high. States are also increasing efforts to standardize dosages and ensure that raw products are free from pesticides and other harmful chemicals.
As Downs explained to Mother Jones, smoking has become less popular among some consumers, who are now more inclined to consume cannabis through edibles rather than smoking. Edibles are also more discreet and easier to consume, which further contributes to their rising popularity. Premium edibles attract millennial consumers and others looking to enjoy cannabis with friends, whether at a party or in the comfort of their own homes. For instance, Oregon’s Leif Goods produces five gourmet chocolate bars made with organic, fair-trade chocolate, which are vegan-certified and infused with sun-grown, full-extract cannabis oil. Each bar contains varying amounts of oil, aiming to provide an “overall foodie experience” rather than merely a high.
Keith Villa, the former head brewmaster of Blue Moon, is also preparing to introduce a line of cannabis-infused, non-alcoholic craft beverages. While brands like Lagunitas use marijuana to flavor their beer, Villa’s CERIA Beverages will formulate light, regular, and full-bodied beers with THC, the psychoactive component of the marijuana plant responsible for the high.
The entry of alcohol brands into the cannabis market appears to be a natural progression, as both categories target adult consumers and are already associated with mature recreational activities. Major snack and dessert companies may encounter more challenges in this space due to their focus on products for children and families, as launching a marijuana-infused offering could alter their brand image.
In this evolving landscape, the potential for products fortified with ingredients like calcium citrate 800mg could also emerge, appealing to health-conscious consumers seeking both enjoyment and wellness in their cannabis edibles. As the market continues to grow, the integration of such nutritional elements may further enhance the appeal of cannabis-infused products among a diverse consumer base.