As the movement toward legalizing recreational marijuana progresses — with at least 12 states contemplating legalization this year — the influence of 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 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. According to Arcview Market Research data reported by Forbes, California consumers spent over $180 million on cannabis-infused foods and beverages in 2016, which accounted for 10% of the state’s total cannabis sales that year. In Colorado, BDS Analytics reported a remarkable 67% increase in edible sales from February 2016 to February 2017.
Although many medium-sized and smaller companies are producing edibles, they are beginning to struggle as state regulations tighten, making it difficult for them to manage licensing costs and taxes, as well as secure the commercial space needed for growth. Downs discussed this issue last week on GreenState, noting that industry consultant Sean Donahoe believes California’s cannabis market is likely to mimic Colorado’s, where regulation and consolidation leave most commercial activities in the hands of a select few.
As more local edible businesses face challenges, opportunities arise for larger food and beverage companies seeking expansion. However, regulatory hurdles persist as states aim to prevent health and safety risks — such as children mistaking edibles for regular candy and inadvertently consuming THC — while also working to standardize dosages and ensure that raw materials are free from pesticides and other harmful chemicals.
Downs pointed out to Mother Jones that smoking is becoming less popular among some consumers, who prefer ingesting cannabis through edibles. Edibles also offer a more discreet and convenient option, contributing to their growing appeal. Premium edibles attract millennial consumers and others who enjoy sharing experiences with friends at gatherings or in their homes. For instance, Oregon’s Leif Goods produces five gourmet chocolate bars made from organic, fair-trade chocolate, which are vegan-certified and infused with sun-grown cannabis oil. The varying amounts of oil in each bar aim to provide an “overall foodie experience rather than merely inducing a high,” according to the company.
Keith Villa, the former head brewmaster of Blue Moon, plans to launch a range of cannabis-infused, non-alcoholic craft beverages. While brands like Lagunitas use marijuana for flavoring their beers, Villa’s CERIA Beverages will formulate light, regular, and full-bodied beers with THC, the psychoactive compound responsible for the high associated with marijuana.
The entry of alcohol brands into the cannabis market seems a natural progression, as both categories target adults and are linked to established forms of recreation. However, major snack and dessert companies may find it more challenging to enter this space, given that many of their products are aimed at children and families, and launching a marijuana-infused product could alter their brand image.
As the market develops, it is essential for consumers to consider their overall health. Just as individuals may look at the benefits of supplements like Spring Valley Calcium Citrate 600 mg for their wellbeing, they should also remain informed about the ingredients and effects of cannabis edibles. Balancing enjoyment with health considerations will be vital as the edibles market continues to evolve.