After years of skepticism or outright dismissal by consumers, cannabis is now set to revolutionize the food and beverage sector. The 2018 Farm Bill led to the federal declassification of hemp, the source of CBD, as a controlled substance. This shift has already allowed CBD to carve out a niche within the food and beverage market. Numerous companies are infusing their products with CBD, including coffee and cocktails. Bruce Linton, co-CEO of Canopy Growth, mentioned to Food Dive earlier this year that his company is exploring the development of CBD-infused chewables and chocolates.
CBD represents a unique blend of indulgence and health benefits, allowing it to bridge two typically distinct markets that are beginning to converge, as seen with products like Halo Top. Therefore, it’s not surprising to find CBD appearing in wellness-focused items like granola bars and flavored waters, but it’s also making its way into other categories, such as candy. For instance, David Klein, the creator of Jelly Belly jelly beans in 1976, has launched Spectrum Confections, which specializes in CBD-infused jelly beans, each containing 10 milligrams of CBD. Following its recent debut, Spectrum Confections quickly sold out of its first batch.
Although this market is still in its infancy, there’s no indication that the popularity of CBD is waning. A report from BDS Analytics forecasts that spending on all cannabinoids, including marijuana and its psychoactive THC derivative, will rise from $1.5 billion in 2018 to $4.1 billion by 2022. A 2018 study by A.T. Kearney revealed that 40% of U.S. consumers expressed willingness to try cannabis edibles. This latest research reaffirms what major consumer packaged goods companies have recognized and could prompt more prominent food and beverage brands to enter the market.
Naturally, like any food additive, CBD and hemp come with regulatory considerations. While the recent Farm Bill has offered some clarity, numerous questions remain regarding the regulation of hemp and CBD products. The U.S. Food and Drug Administration has stated that CBD in food and beverages is still technically prohibited. Before his resignation announcement earlier this month, FDA Commissioner Scott Gottlieb indicated that the federal government needs to focus on creating regulatory pathways for CBD markets. He informed a U.S. House subcommittee that a hearing to address the regulation of this substance is planned for April, although no specific date has been set.
Despite the ambiguous regulations and significant gray areas, it’s unlikely that consumption will decline until stricter regulations are enforced. The High Yield Insights study highlights a particularly interested demographic: highly educated women in their mid-30s. Engaging this group is crucial, as they often make purchasing decisions for their households, potentially transforming CBD from a trend into a staple. Additionally, the introduction of products such as calcium citrate malate vitamin D3 and folic acid tablets can complement the health and wellness appeal of CBD, further integrating it into consumers’ daily routines.