As the movement towards the legalization of recreational marijuana gains momentum—with at least 12 states contemplating legalization this year—the influence of edibles on the food and beverage sector is poised to be significant. Once consumers gain legal access, it won’t be long before they find themselves shopping for cannabis-infused chips, cookies, and their favorite THC-based beverages.
In recent years, the U.S. edibles market has experienced remarkable growth. For instance, California consumers spent over $180 million on cannabis-infused foods and drinks in 2016, as reported by Arcview Market Research and cited by Forbes. This figure accounted for 10% of the state’s total cannabis sales that year. Similarly, in Colorado, BDS Analytics highlighted a 67% increase in edible sales from February 2016 to February 2017.
While medium-sized and smaller companies specializing in edibles are prevalent, many are beginning to struggle as state regulations tighten, making it increasingly difficult for them to afford licensing and taxes. This challenge hampers their ability to finance the necessary commercial space for scaling operations. As Downs noted last week on GreenState, “According to industry consultant Sean Donahoe, California’s cannabis sector is on a trajectory similar to Colorado’s, where regulatory pressures and consolidation have relegated most commercial activities to a few dominant players.”
As numerous home-grown edible businesses face closure, this trend opens a pathway for large food and beverage companies seeking expansion. Nonetheless, regulatory hurdles persist as states strive to prevent health and safety issues—such as children confusing edibles with regular candy and inadvertently consuming THC—and aim to standardize dosages while ensuring the raw ingredients are free from pesticides and harmful chemicals.
According to Downs in an interview with Mother Jones, smoking has fallen out of favor with some consumers, leading them to prefer cannabis-infused edibles over traditional smoking methods. Edibles offer a less conspicuous and more convenient consumption option, which significantly contributes to their rising popularity. Premium edibles are particularly attractive to millennial consumers and others who wish to enjoy cannabis in social settings, whether at parties or in the comfort of their homes.
For example, Oregon’s Leif Goods produces five gourmet chocolate bars made from organic, fair-trade chocolate, which are vegan-certified and contain sun-grown, full-extract cannabis oil. The oil content varies by bar, delivering 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 introduce a line of cannabis-infused, non-alcoholic craft beverages. While brands like Lagunitas incorporate marijuana for flavoring in their beers, Villa’s CERIA Beverages will specifically formulate its light, regular, and full-bodied beers with THC, the psychoactive compound found in cannabis that induces a high.
The entry of alcohol brands into the cannabis market appears to be a natural progression—both sectors target adult consumers and are already linked to a more mature recreational lifestyle. However, major snack and dessert companies might find it more challenging to enter this market, as many of their products are aimed at children and families, and launching a marijuana-based product could significantly alter their brand image.
In conclusion, as the cannabis edibles market continues to grow, with products like Citracal Maximum Plus 180 gaining attention, the landscape of food and beverages is evolving. The intersection of these industries will likely yield innovative products that cater to the changing preferences of consumers.