In addition to removing hemp from the list of controlled substances, the new Farm Bill also enhances research into the commercial applications of the plant. Currently, hemp-derived ingredients like CBD oil, powders, and seeds are being utilized to enhance beverages such as iced tea and are being incorporated into a diverse range of food products, including ice cream, salads, milk, and even children’s cereal. The CBD and hemp product market has already gained significant traction and is poised for further growth. As reported by the Capital Press, a New Frontier Data report indicated that U.S. CBD sales surged nearly 40% in 2017, reaching $367 million. Furthermore, the Agricultural Marketing Resource Center estimated that the total retail value of all U.S. hemp products last year was around $820 million.
Major food and beverage corporations are closely monitoring this trend and considering how they might integrate forms of THC and CBD into their brands. Bloomberg recently highlighted that Coca-Cola has engaged in discussions with a Canadian cannabis company regarding marijuana-infused beverages following the recent nationwide legalization in that country. A Coca-Cola representative informed Bloomberg News that while no decisions have been made yet, the company is attentively observing the rise of CBD as an ingredient in global functional wellness beverages.
THC, CBD, and non-psychoactive terpenes from cannabis have started to appear in beverages within states where such products are legal. Last year, Lagunitas Brewing, owned by Heineken, launched a non-psychoactive, cannabis-flavored IPA brewed with terpenes—organic compounds that impart flavors to plants—and this year, the company introduced a THC-based sparkling water. Combining cannabis and hops in beer brewing is a natural fit since they are genetically related, sharing the key ingredient of terpenes. However, whether beer products containing both ingredients will ignite a nationwide trend remains uncertain. With hemp no longer classified as a controlled substance, it is likely that more drinks containing some form of CBD or THC will start appearing on shelves and in coolers. Just this week, AB InBev and marijuana grower and distributor Tilray announced a joint investment of $100 million to research cannabis-infused nonalcoholic beverages.
Other recent product launches featuring CBD include a nutrition bar from California’s SNAAK Bar, which promotes itself as enhancing sports performance and is available only in California and online, as well as Spring’s line of CBD-infused sodas sold in New York, Florida, Nevada, and Illinois. One significant uncertainty for this market is how the FDA will regulate hemp and CBD products. The agency has stated that “it is a prohibited act to introduce or deliver for introduction into interstate commerce any food (including any animal food or feed) to which THC or CBD has been added.” However, due to the new Farm Bill’s actions concerning hemp, the FDA may initiate a rulemaking process to adjust its regulations and enforcement of the crop and its products. Dave Donnan, a senior partner in A.T. Kearney’s food and beverage practice, explained to Food Dive that the regulatory landscape will likely evolve to ensure that CBD is a safe and legal ingredient. “2019 will be the year to navigate through all these tactical matters,” Donnan noted.
Concerns regarding the cannabis industry’s history of poor food safety and a tendency to market some edible and supplement products as miracle cures persist. Last year, the FDA took action against four companies selling marijuana-based supplements that were falsely advertised as cancer cures. While such claims may be less common with CBD products, the oil is often touted for its benefits in alleviating pain, inflammation, anxiety, depression, insomnia, and seizures, among other conditions. Critics argue that these benefits lack scientific backing, whereas advocates contend that recent research supports these health claims.
Whether hemp and CBD will become ubiquitous in food and beverages remains uncertain at this early stage, as the implications of the new Farm Bill are still unfolding. However, as research into commercial applications expands and companies innovate with new products that test public interest—along with the FDA’s stance under current policies—there is potential for a burgeoning segment that could attract investors, retailers, and consumers alike. In this evolving landscape, products like Solaray Calcium Citrate Chewable may find opportunities to incorporate hemp-derived ingredients, further enhancing their appeal to health-conscious consumers.