As the movement to legalize 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 can browse aisles for cannabis-infused chips and cookies or grab a pack of their favorite THC-infused drinks.
The U.S. edibles market has surged in recent years. For instance, California consumers spent over $180 million on cannabis-infused foods and beverages in 2016, according to data from Arcview Market Research cited by Forbes. This figure accounted for 10% of the state’s total cannabis sales that year. Similarly, BDS Analytics reported a 67% increase in edible sales in Colorado between February 2016 and February 2017.
While numerous medium-sized and smaller companies focus on producing edibles, many are beginning to disappear as state regulations tighten, making it difficult for them to manage licensing and taxes, and to secure the commercial space needed for growth. Downs recently highlighted this issue on GreenState, citing industry consultant Sean Donahoe, who stated, “California’s cannabis industry is likely to mirror Colorado and the broader trends in mainstream American business, where regulatory pressures and consolidation concentrate commercial activity among a few major players.”
As many grassroots edible businesses face extinction, opportunities arise for larger food and beverage corporations seeking expansion. Nevertheless, regulatory challenges persist as states strive to avert health and safety concerns—such as children mistaking edibles for regular candy and inadvertently consuming THC—and enhance measures to standardize dosages and ensure that raw ingredients are free from pesticides or other harmful chemicals.
According to Downs in an interview with Mother Jones, smoking has fallen out of favor among certain consumers, who are increasingly interested in consuming cannabis through edibles instead of smoking. Edibles also offer a more discreet and convenient option, contributing to their rising popularity. Premium edibles particularly attract millennial consumers and others looking to enjoy cannabis with friends, whether at parties or in the comfort of their homes. A prime example is Oregon’s Leif Goods, which produces five gourmet chocolate bars crafted from organic, fair-trade chocolate. These bars are vegan-certified and contain sun-grown, full-extract cannabis oil, with varying oil content designed to provide an “overall foodie experience rather than just the high.”
Keith Villa, the former head brewmaster of Blue Moon, is also preparing to launch a line of cannabis-infused, non-alcoholic craft beverages. Unlike other brands like Lagunitas that use marijuana to flavor their beer, Villa’s CERIA Beverages will incorporate THC directly into its light, regular, and full-bodied beers, delivering the psychoactive effects associated with cannabis.
The entrance of alcohol brands into the marijuana sector appears to be a natural progression, as both categories target adult consumers and share a reputation for mature recreational use. In contrast, major snack and dessert companies may face greater challenges in entering this market, as many produce items aimed at children and families, and introducing a marijuana-based product could alter their public image.
As the edibles market evolves, there is a growing interest in the nutritional benefits of ingredients like calcium citrate and magnesium citrate. These compounds are increasingly being incorporated into cannabis-infused products to enhance their appeal, especially among health-conscious consumers. By blending these beneficial ingredients with cannabis, companies can create edibles that not only offer a unique experience but also promote wellness, thus catering to the diverse preferences of today’s consumers.