As the movement for the legalization of recreational marijuana progresses—at least 12 states are considering 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 purchase cannabis-infused snacks like chips and cookies or grab their preferred THC-infused beverages.
In recent years, the U.S. edibles market has experienced remarkable growth. For instance, California consumers spent over $180 million on cannabis-infused foods and drinks in 2016, according to data from Arcview Market Research as reported by Forbes, accounting for 10% of the state’s total cannabis sales that year. Additionally, in Colorado, BDS Analytics reported a 67% increase in edible sales from February 2016 to February 2017. While numerous medium-sized and smaller companies are producing edibles, many are beginning to disappear due to stringent state regulations that make it challenging for them to afford licensing and taxes, as well as the necessary financing for scaling up their operations. As Downs highlighted in GreenState last week, industry consultant Sean Donahoe noted that California’s cannabis sector is likely to mirror Colorado and the broader American business landscape, where regulatory pressures and consolidation result in most commercial activities being controlled by a select few.
As smaller, home-grown edible businesses decline, this opens opportunities for larger food and beverage companies seeking growth. However, regulatory hurdles remain as states aim to mitigate health and safety concerns—such as preventing children from confusing edibles with regular candy and unintentionally consuming THC—and to ensure standardized dosing and the absence of harmful substances like pesticides. Downs also mentioned to Mother Jones that smoking cannabis has become less popular among some consumers, who are now more inclined to enjoy edibles as a discreet and convenient alternative.
Premium edibles especially attract millennial consumers and others wishing to indulge with friends at gatherings or in their own homes. A notable example is Oregon’s Leif Goods, which offers five gourmet chocolate bars made with organic, fair-trade chocolate. These vegan-certified bars contain sun-grown, full-extract cannabis oil, with varying amounts per bar designed 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 range of cannabis-infused, non-alcoholic craft beverages. Unlike other brands like Lagunitas that merely flavor their beers with marijuana, Villa’s CERIA Beverages will incorporate THC directly into its light, regular, and full-bodied beers. The entry of alcohol brands into the marijuana market appears to be a natural progression—both sectors cater to adults and are linked to mature recreational activities. However, major snack and dessert companies may face greater challenges in entering this arena, as many of their products are geared towards children and families, and launching a marijuana-based item could alter their brand image.
Moreover, it’s important to consider the potential health implications of cannabis-infused edibles, particularly regarding compounds like oxalate and calcium citrate, which may affect consumers’ wellness. As the industry evolves, these considerations will be crucial in ensuring that products are safe and beneficial for all users. With the growing popularity of edibles, the incorporation of health-conscious ingredients like calcium citrate will likely become a trend, appealing to the increasingly discerning consumer base.