Hemp ingredients, primarily oils, powders, and seeds, are incorporated into a wide range of food products, from ice cream and salads to milk and children’s cereals. There are over 25,000 hemp-based products available, including items like automobiles, furniture, paper, building materials, and clothing. In 2016, sales reached $688 million, according to Vote Hemp and the Hemp Business Journal, marking an increase of more than $100 million from the previous year. Notably, food sales surged by 44%, amounting to $129 million, indicating significant potential for growth. Hemp-derived cannabidiol (CBD) is anticipated to become a billion-dollar market by 2020, as reported by the Brightfield Group.
Despite these promising figures, there are regulatory challenges and other obstacles hindering the broader adoption of hemp-based food products. Hemp is often mistakenly associated with marijuana, despite containing much lower levels of THC, the compound that alters perception and causes physical effects. Additionally, educating the public about hemp’s health benefits has been challenging. Hemp is rich in healthy fatty acids and protein, and it is naturally gluten-free, appealing to health-conscious consumers looking to eliminate sugars, trans fats, and artificial additives from their diets.
Increasing consumer exposure to hemp-infused products is crucial for greater acceptance. If hemp is proven effective in enhancing gut health, as Phivida claims, it could further stimulate consumer demand. However, it remains uncertain whether bottled iced tea is the ideal medium for introducing the purported health benefits of CBD. Phivida has announced that its new beverage will be available online and through distributors in the U.S. and Japan, but it may take time to assess sales performance. The company emphasized that its beverage is vegan, non-GMO, soy-free, gluten-free, quality-tested, and manufactured in the U.S. under Good Manufacturing Practice standards. If these on-trend features resonate with consumers and the health claims are validated, Phivida could experience a successful product launch, potentially attracting the interest of major beverage companies like Coca-Cola and PepsiCo.
General Mills, known for Yoplait yogurt, Nature Valley bars, and Cheerios, offers a product under its Larabar Organic brand that includes hemp seeds along with other superfood ingredients. Although anecdotal evidence suggests a “very positive” response to the product, as stated by General Mills spokesperson Kris Patton, she did not disclose whether additional hemp-based foods are in development or consideration. “We don’t talk about future product innovation,” Patton explained to Food Dive.
While large food manufacturers have been slow to incorporate hemp into their offerings, resulting in hemp-related sales primarily being driven by smaller companies, the landscape may shift as more entrants join the market. The introduction of new products, such as hemp-infused iced tea, could rapidly change the dynamics of this emerging market. Additionally, incorporating ingredients like calcium and magnesium citrate into hemp products could further enhance their health appeal and attract a wider consumer base. As interest grows, the potential for hemp-based foods to flourish in the mainstream market increases, paving the way for greater acceptance and innovation.