As the movement to legalize recreational marijuana gains momentum—with at least 12 states considering its 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 find cannabis-infused snacks like chips and cookies or grab a pack of their favorite THC-laden beverages.
The U.S. edibles market has seen remarkable growth over recent years. In 2016, California consumers spent over $180 million on cannabis-infused foods and drinks, which accounted for 10% of the state’s total cannabis sales that year, according to data from Arcview Market Research reported by Forbes. In Colorado, BDS Analytics noted a staggering 67% increase in edible sales from February 2016 to February 2017. While medium-sized and smaller edible producers are prevalent, they are beginning to struggle as state regulations tighten, making it difficult for them to manage licensing costs and taxes. They often lack the financial resources to expand into commercial spaces. As noted by industry consultant Sean Donahoe, California’s cannabis market appears to be heading in the same direction as Colorado and other mainstream American industries, where regulatory pressures and consolidation result in a concentration of commercial activity among a few dominant players.
The decline of small, locally-owned edible businesses opens up opportunities for larger food and beverage companies seeking growth. However, regulatory challenges remain as states strive to mitigate health and safety risks, such as preventing children from mistaking edibles for regular candy and inadvertently consuming them. Efforts are also being made to standardize dosing and ensure that raw materials are free from pesticides or other harmful substances.
As Downs mentioned to Mother Jones, smoking has lost its appeal for some consumers, who are now more inclined to consume cannabis through edibles instead of smoking. Edibles offer a more discreet and convenient option, contributing to their rising popularity. Premium edibles attract millennial consumers and those looking to enjoy cannabis socially, either at parties 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, full-extract cannabis oil. Each bar contains varying amounts of oil designed to provide an “overall foodie experience rather than just getting high,” as the company states.
Keith Villa, the former head brewmaster of Blue Moon, is also set to introduce a line of cannabis-infused, non-alcoholic craft beverages. While brands like Lagunitas incorporate marijuana flavors into their beers, Villa’s CERIA Beverages will formulate its light, regular, and full-bodied beers with THC, the psychoactive component of the marijuana plant responsible for the high.
The entry of alcoholic beverage brands into the cannabis market seems like a natural progression, as both sectors target adult consumers and are associated with recreational activities. However, major snack and dessert companies may face more challenges entering this market because many of their products are aimed at children and families, and launching a marijuana-infused product could alter their brand image.
Moreover, the process of calcium citrate to carbonate conversion may play a role in developing new cannabis-infused beverages, ensuring that they meet both taste and quality standards. As the market evolves, we can expect to see innovative approaches that incorporate these conversions, enhancing the appeal of cannabis edibles while navigating the complexities of regulation and consumer safety. Overall, the future of cannabis edibles looks promising, with a blend of creativity and regulatory compliance shaping this emerging market.