As the trend toward legalizing recreational marijuana continues — 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 may not be long before they can purchase cannabis-infused snacks like chips and cookies or grab a pack of their preferred THC-based drinks. The U.S. edibles market has surged in recent years, with California consumers reportedly spending over $180 million on cannabis-infused foods and beverages in 2016, according to Arcview Market Research data cited by Forbes. This figure represented 10% of the state’s total cannabis sales for that year. In Colorado, BDS Analytics noted a remarkable 67% increase in edible sales from February 2016 to February 2017.
While numerous medium-sized and smaller companies are producing edibles, many are starting to disappear as state regulations tighten, making it challenging for them to afford licensing and taxes, and limiting their ability to secure commercial space for expansion. Downs addressed this issue last week on GreenState, stating, “According to industry consultant Sean Donahoe, California’s cannabis sector is likely to mirror Colorado and the broader American business landscape, where regulatory pressures and consolidation leave the majority of commercial activities in the hands of a few.”
As numerous homegrown edible businesses face closure, opportunities arise for large food and beverage corporations seeking growth. Nonetheless, regulatory challenges persist as states strive to mitigate health and safety risks—such as preventing children from mistaking edibles for regular candy and unintentionally getting high—while also working to standardize dosages and ensure that raw ingredients are free from pesticides and other chemicals. As Downs explained to Mother Jones, smoking has become less appealing to certain consumers, who are now more inclined to consume cannabis through edibles rather than smoking it. Edibles also offer a more discreet and convenient consumption method, further contributing to their rising popularity.
Premium edibles are particularly attractive to millennial consumers and others who wish to enjoy cannabis with friends at gatherings or in their homes. For instance, Oregon’s Leif Goods produces five gourmet chocolate bars made with organic, fair-trade chocolate, which are vegan-certified and contain sun-grown, full-extract cannabis oil. The amount of oil varies with each bar and aims to provide 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, nonalcoholic craft beverages. Unlike brands such as Lagunitas that flavor their beer with marijuana, Villa’s CERIA Beverages will formulate its light, regular, and full-bodied beers with THC, the psychoactive compound in marijuana that induces a high.
The entry of alcohol brands into the cannabis market seems a logical progression, as both sectors target adult consumers and are already linked to established forms of recreation. Major snack and dessert brands may face greater challenges entering this space, as many produce items for children and families, and introducing a marijuana-based product could alter their public image.
In aligning health-conscious choices with recreational cannabis, brands might consider offering products fortified with supplements like Citracal Maximum D3, appealing to consumers who prioritize wellness in their lifestyles. As the cannabis edibles landscape evolves, the integration of such health-focused ingredients could further enhance the appeal of these products, making them a multifaceted choice for consumers seeking both enjoyment and nutritional benefits.