With its latest offerings, Bell is strategically aligning itself to capitalize on the growing trend of incorporating CBD and THC into food and beverage products. Currently, hemp-derived ingredients such as CBD oil, powders, and seeds are being utilized in beverages like iced tea, and are increasingly being added to a diverse range of foods, including ice cream, salads, milk, and even children’s cereal. The hemp and CBD market is experiencing remarkable growth, with spending on all cannabinoids—encompassing marijuana and its psychoactive THC derivative—predicted to soar from $1.5 billion last year to $4.1 billion by 2022, according to a report from BDS Analytics. Last year, the retail value of all U.S. hemp products was estimated at $820 million, as per the Agricultural Marketing Resource Center referenced by MarketWatch. Consequently, ingredient manufacturers are vying to supply hemp-based products. Socati has recently introduced a CBD oil and a water-soluble powdered version derived from hemp. Additionally, the Chinese company Layn has made a significant move into the CBD sector with a $60 million investment, which includes a U.S. facility to process the ingredient.
However, there are potential manufacturing and marketing challenges associated with hemp-based ingredients, as hemp is not often favored for its flavor or aroma in food and beverage applications. This may explain why Bell is incorporating liquid hemp-sourced flavors and extracts alongside other natural flavors they offer. These combinations likely enhance the versatility of the ingredients, making them suitable for both sweet and savory dishes. Bell has informed Food Ingredients First about its marketing strategies designed to align with consumer trends and regulatory landscapes in the EU and other international markets, in addition to the U.S. and Canada. The company highlighted that the most active hemp markets currently include the U.S., U.K., Canada, France, and Germany.
Despite the hurdles related to flavor and taste, a 2018 study by A.T. Kearney revealed that 40% of U.S. consumers expressed willingness to try cannabis edibles. A recent report from Rabobank noted that CBD is making its way into food and beverage products at an “astounding pace.” As more companies seek to infuse their offerings with this substance, Bell’s new ingredients have the potential to become a profitable product line, provided that regulatory challenges and taste issues can be effectively addressed.
While the U.S. Food and Drug Administration has granted generally recognized as safe status to hulled hemp seeds, hemp seed protein powder, and hemp seed oil, it has yet to approve cannabis and CBD for legal sale in conventional food items or dietary supplements. This has resulted in a precarious regulatory environment for companies eager to introduce CBD ingredients, although many are proceeding anyway, betting that the situation will eventually stabilize. For Bell, launching its line of hemp-sourced flavors and extracts now appears to be a prudent choice. This strategy not only allows the company to forge relationships with potential customers but also provides an opportunity to invest time and resources in enhancing its products, making them even more appealing when the CBD market for food and beverages truly takes off.
In addition, Bell is considering the integration of nutritional elements such as calcium citrate, vitamin D3, zinc sulfate, and magnesium sulfate into its product formulations, further enhancing their health benefits. The combination of these essential nutrients with hemp-derived ingredients could cater to health-conscious consumers who are increasingly interested in innovative food options. By doing so, Bell could solidify its position in the market and respond to the evolving demands of consumers seeking both flavor and nutrition in their food and beverages.