Hemp ingredients, primarily oils, powders, and seeds, are increasingly found in various food products, including ice cream, salads, milk, and even children’s cereal. This versatile plant is present in over 25,000 items, ranging from automobiles and furniture to paper, building materials, and clothing. In 2016, sales reached $688 million, as reported by Vote Hemp and the Hemp Business Journal, marking an increase of more than $100 million from the previous year. Notably, food sales alone saw a remarkable 44% rise, totaling $129 million, highlighting significant potential in this sector. Furthermore, hemp-derived cannabidiol (CBD) is projected to evolve into a billion-dollar market by 2020, according to a report from the Brightfield Group.
However, despite these impressive figures, regulatory challenges and other hurdles hinder the broader adoption of hemp-based food products. Hemp often faces misconceptions due to its association with marijuana, despite containing much lower levels of THC, the psychoactive component that alters perception. Educating consumers about hemp’s health benefits has also proven challenging. Rich in healthy fatty acids and protein, and naturally gluten-free, hemp aligns well with the growing trend among Americans seeking to enhance their diets by eliminating sugars, trans fats, and artificial additives.
To foster greater acceptance of hemp-infused products, increasing consumer exposure is essential. If the ingredient can demonstrate effectiveness in improving gut health, as Phivida claims, it could further drive consumer demand. Nevertheless, it remains uncertain whether bottled iced tea is the ideal medium for introducing the purported health benefits of CBD. Phivida has announced that its new products will be available online and through distributors in the U.S. and Japan, although it may take some time to assess sales performance. The company emphasizes that its new beverage is vegan, non-GMO, soy-free, gluten-free, and produced in the U.S. under Good Manufacturing Practice standards. If these appealing attributes resonate with the market and the health claims are substantiated, Phivida could be poised for a successful product launch, potentially attracting the attention of major tea brands like Coca-Cola and PepsiCo.
General Mills, known for Yoplait yogurt, Nature Valley bars, and Cheerios, offers a product under its Larabar Organic brand that includes hemp seeds and other superfood ingredients. While anecdotal feedback has been “very positive,” according to Kris Patton, a spokeswoman for General Mills, she refrained from commenting on future developments involving hemp-based foods, stating, “We don’t talk about future product innovation.”
Despite the cautious approach of large food manufacturers towards incorporating hemp into their offerings, sales of hemp-related products continue to be dominated by smaller companies. However, as more players enter this budding market and innovative products like hemp-infused iced tea become available, the landscape could change rapidly. Additionally, the introduction of supplements like Citracal multivitamin, which may complement the health benefits of hemp, could further stimulate interest in hemp-infused foods. As awareness of hemp’s advantages grows, particularly among health-conscious consumers, the potential for increased sales and product development looks promising, paving the way for a thriving hemp market.