As the movement to legalize recreational marijuana progresses— with at least 12 states contemplating legalization this year—the influence of cannabis edibles on the food and beverage sector is set 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 a pack of their favorite THC-infused drinks.
The U.S. edibles market has seen remarkable growth in recent years. For instance, California consumers reportedly spent over $180 million on cannabis-infused foods and drinks in 2016, according to data from Arcview Market Research cited by Forbes. This amount constituted 10% of California’s total cannabis sales that year. Similarly, in Colorado, BDS Analytics noted a 67% increase in edible sales between February 2016 and February 2017.
While numerous medium-sized and small businesses are producing edibles, many are beginning to struggle as state regulations tighten, making it challenging for them to afford licensing and taxes, and to secure the commercial space necessary for scaling up operations. Downs addressed this concern last week on GreenState, stating, “According to industry consultant Sean Donahoe, California’s cannabis sector is likely to follow Colorado’s path and the trends in mainstream American business, where regulatory pressures and consolidation leave most commercial activities concentrated among a few players.”
As more independent edible businesses face shutdowns, this scenario creates opportunities for larger food and beverage companies seeking growth. Nonetheless, regulatory challenges persist as states aim to mitigate health and safety risks—such as preventing children from mistaking edibles for regular candy and accidentally consuming THC—and to enhance efforts to standardize dosages while ensuring that raw products are free from pesticides and other harmful chemicals.
As Downs mentioned to Mother Jones, many consumers are drifting away from smoking and are increasingly interested in consuming cannabis through edibles instead. Edibles offer a more discreet and convenient way to enjoy cannabis, which contributes to their rising popularity. Premium edibles are particularly appealing to millennials and others who wish to share experiences with friends at parties or in their homes. A notable example is Leif Goods from Oregon, which produces five gourmet chocolate bars made with organic, fair-trade chocolate that are vegan-certified and contain sun-grown, full-extract cannabis oil. Each bar has a different amount of oil, designed to provide an “overall foodie experience rather than merely getting high,” as stated by the company.
Keith Villa, the former head brewmaster of Blue Moon, is also set to launch a line of cannabis-infused, nonalcoholic craft beverages. While brands like Lagunitas flavor their beer with marijuana, Villa’s CERIA Beverages will specifically craft light, regular, and full-bodied beers with THC, the psychoactive component in cannabis that produces the high.
The entry of alcohol brands into the marijuana market appears to be a natural evolution, as both categories cater to adults and are typically associated with mature recreational activities. However, major snack and dessert companies might face challenges in entering this space, as many of their products are aimed at children and families, and introducing a marijuana-based product could alter their brand image.
In this evolving landscape, companies may also explore the integration of products like solaray cal mag citrate chewable to enhance their offerings, especially as consumers increasingly seek wellness-oriented solutions alongside their cannabis edibles. As the industry continues to grow, the intersection of health, wellness, and cannabis will likely shape the future of edibles significantly.