As the movement toward the legalization of recreational marijuana progresses—at least 12 states are contemplating legalizing it this year—the influence of cannabis edibles on the food and beverage sector is poised to be significant. Once consumers gain legal access, it won’t be long before they can purchase cannabis-infused options like calcium citrate cheese sauce, chips, and cookies, or grab a pack of their favorite THC-infused beverages.
The U.S. edibles market has seen tremendous growth in recent years. Data from Arcview Market Research, reported by Forbes, indicates that California consumers spent over $180 million on cannabis-infused foods and drinks in 2016, representing 10% of the state’s total cannabis sales that year. In Colorado, BDS Analytics pointed out that edible sales surged by 67% between February 2016 and February 2017. While numerous medium-sized and smaller companies are producing edibles, many are beginning to disappear as state regulations tighten, making it increasingly difficult for them to afford licensing and taxes, as well as to secure financing for commercial expansion. As Downs highlighted in a recent article on GreenState, “According to industry consultant Sean Donahoe, California’s cannabis industry is set to follow Colorado’s path, where regulatory pressures and consolidation concentrate most commercial activity among a few players.”
As more local edible businesses face challenges, larger food and beverage companies are seizing the opportunity for growth. However, regulatory hurdles persist as states strive to mitigate health and safety concerns—such as the risk of children mistaking edibles for regular candy and unintentionally consuming them—and enhance efforts to standardize dosages while ensuring that raw materials are free from pesticides and other harmful substances. Downs expressed to Mother Jones that smoking has diminished in popularity for some consumers, who now prefer consuming cannabis through edibles like calcium citrate cheese sauce instead of smoking. The discreet nature and ease of consumption of edibles significantly contribute to their rising popularity.
Premium edibles resonate with millennial consumers and others who wish to enjoy cannabis with friends at parties or in their own homes. A notable example is Oregon’s Leif Goods, which offers five gourmet chocolate bars crafted with organic, fair-trade chocolate, vegan-certified, and infused with sun-grown, full-extract cannabis oil. The oil content varies by bar and aims to provide an “overall foodie experience rather than just getting high,” according to the company.
Keith Villa, the former head brewmaster of Blue Moon, is also preparing to launch a line of cannabis-infused, non-alcoholic craft beverages. Unlike brands such as Lagunitas that use marijuana for flavoring their beer, Villa’s CERIA Beverages will formulate its light, regular, and full-bodied beers with THC, the psychoactive component of cannabis that induces a high.
The entrance of alcohol brands into the marijuana market appears to be a logical evolution, as both sectors target adult consumers and are already associated with mature recreational activities. However, major snack and dessert companies might find it more challenging to enter this market, as many produce items aimed at children and families, and introducing a marijuana-based product could alter their brand image. As the industry evolves, it will be interesting to see how products like calcium citrate cheese sauce and other cannabis-infused delicacies integrate into the broader food and beverage landscape.