As the trend toward legalizing 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 legal access is granted to consumers, it may not be long before they can purchase cannabis-infused chips and cookies or grab a pack of their preferred THC-based beverages.
The U.S. edibles market has surged in recent years, with California consumers reportedly spending over $180 million on cannabis-infused food and drinks in 2016, according to Arcview Market Research data cited by Forbes. This figure accounted for 10% of the state’s total cannabis sales that year. In Colorado, BDS Analytics indicated that edible sales skyrocketed by 67% from February 2016 to February 2017.
While medium-sized and smaller companies producing edibles have flourished, many are beginning to struggle as state regulations tighten their grip on licensing and tax obligations, making it difficult for them to afford the commercial space needed to expand. In a recent article for GreenState, Downs highlighted the issue, noting that, “According to industry consultant Sean Donahoe, California’s cannabis industry is likely to mirror Colorado’s trajectory, where regulatory pressures and consolidation concentrate commercial activities among a select few.”
As the proliferation of home-grown edible businesses diminishes, major food and beverage corporations are poised to seize the opportunity for growth. However, regulatory challenges persist as states strive to mitigate health and safety concerns — such as preventing children from confusing edibles with regular candy and inadvertently getting high. Moreover, efforts are being enhanced to standardize dosages and ensure that raw ingredients are free from pesticides and harmful chemicals.
As Downs pointed out to Mother Jones, smoking has declined in popularity among some consumers, who now prefer consuming cannabis through edibles. These products are not only less conspicuous but also more convenient, contributing to their rising appeal. Premium edibles particularly attract millennial consumers and others who wish to enjoy cannabis with friends at gatherings or in the comfort of their homes.
An example of this trend is Leif Goods in Oregon, which offers five gourmet chocolate bars made with organic, fair-trade chocolate, certified vegan, and infused with sun-grown, full-extract cannabis oil. The oil content varies by bar and is designed to provide an “overall foodie experience rather than merely a high,” according to the company. Keith Villa, the former head brewmaster of Blue Moon, is also set to introduce a line of cannabis-infused, non-alcoholic craft beverages. Unlike other brands like Lagunitas, which flavor their beer with marijuana, Villa’s CERIA Beverages will incorporate THC directly into their light, regular, and full-bodied beers.
The entry of alcohol brands into the marijuana market appears to be a natural progression, as both sectors target adult consumers and are already linked to established recreational activities. However, major snack and dessert companies may face challenges in entering this arena, as many of their products cater to children and families, and introducing marijuana-based items could alter their brand image.
Additionally, as more consumers become aware of the potential health benefits of cannabis, including compounds like calcium citrate and calcitriol K2-7, interest in edibles infused with these nutrients may rise. The integration of such elements into cannabis products could further enhance their appeal and broaden the consumer base.