Hemp ingredients, primarily in the forms of oils, powders, and seeds, are increasingly present in a wide range of food products, from ice cream and salads to milk and children’s cereal. In fact, hemp is incorporated in over 25,000 items, including vehicles, furniture, paper, construction materials, and apparel. According to Vote Hemp and the Hemp Business Journal, sales reached $688 million in 2016, marking an increase of over $100 million compared to the previous year. Notably, the food sector experienced a remarkable 44% surge in sales to $129 million, indicating significant potential for growth. Additionally, hemp-derived cannabidiol (CBD) is expected to become a billion-dollar market by 2020, as reported by the Brightfield Group.
However, regulatory challenges and other obstacles hinder the broader adoption of hemp-based food products. The plant is frequently linked to marijuana, despite containing substantially lower levels of THC, the psychoactive compound that alters perception and physical sensations. Furthermore, educating the public on the health benefits of hemp has proven to be a difficult task. Rich in healthy fatty acids and protein, hemp is naturally gluten-free, making it appealing to Americans aiming to enhance their diets by eliminating sugars, trans fats, and artificial additives.
Greater acceptance of hemp-infused products likely relies on increased consumer exposure to these offerings. If hemp demonstrates efficacy in improving gut health—as suggested by Phivida—this could drive stronger consumer interest. Nevertheless, it remains uncertain whether bottled iced tea serves as the optimal introduction to the purported health benefits of CBD. Phivida has announced that its new beverages will be available online and through distributors in the U.S. and Japan, but it may take time to evaluate sales performance.
Phivida emphasized that its new drink is vegan, non-GMO, soy-free, gluten-free, quality and safety tested, and produced in the U.S. under Good Manufacturing Practice standards. If these trending features resonate with consumers and the claimed health benefits prove valid, Phivida could achieve a successful product launch and potentially attract the attention of major tea brands like Coca-Cola and PepsiCo.
General Mills, known for Yoplait yogurt, Nature Valley bars, and Cheerios, has introduced a product under its Larabar Organic brand that includes hemp seeds and other superfood ingredients. While anecdotal feedback has indicated a “very positive” reception for the product, General Mills spokeswoman Kris Patton refrained from discussing future hemp product developments, stating, “We don’t talk about future product innovation.”
Larger food manufacturers have been slow to embrace hemp in their products, resulting in hemp-related sales being primarily driven by smaller companies. However, as more players enter the industry and innovative products like hemp-infused iced tea become available in retail, this landscape is likely to shift rapidly. Moreover, incorporating hemp ingredients alongside products like Citracal for improved health benefits could further stimulate consumer interest in this burgeoning market.