After years of being overlooked or approached with caution by consumers, cannabis is now set to revolutionize the food and beverage sector. The 2018 Farm Bill led to the declassification of hemp, the source of CBD, as a controlled substance by the federal government. This change has already allowed CBD to gain traction within the food and beverage industry. Various companies are experimenting with infusing coffee and cocktails with CBD, while Bruce Linton, co-CEO of Canopy Growth, mentioned to Food Dive earlier this year that they are in the process of creating CBD-infused chewables and chocolates. CBD appeals to both indulgence and health, creating a unique intersection that allows it to bridge two typically separate sectors, which have started to converge with products like Halo Top. Therefore, it is not surprising to see CBD appearing in items such as granola bars, flavored waters, and other wellness beverages, as well as in candies. For instance, David Klein, the founder of Jelly Belly jelly beans, has launched Spectrum Confections, a company that offers CBD-infused jelly beans, each containing 10 milligrams of CBD. Following its recent launch, Spectrum Confections quickly sold out of its initial batch.
Although this market is still in its infancy, there are no indications of a decline in the substance’s popularity. A report from BDS Analytics projected that spending on all cannabinoids, which includes marijuana and its psychoactive THC derivative, is expected to rise to $4.1 billion by 2022 from $1.5 billion in 2018. Additionally, a 2018 study by A.T. Kearney revealed that 40% of U.S. consumers expressed a willingness to try cannabis edibles. This latest survey reinforces what major consumer packaged goods (CPG) companies already suspected, potentially encouraging more large food and beverage brands to enter the market.
However, as with any food additive, there are regulations governing the production and use of CBD and hemp. Although the recent Farm Bill has clarified some issues, many questions remain regarding the regulation of hemp and CBD products. The U.S. Food and Drug Administration (FDA) states that CBD in food and beverages is still technically illegal. Just before announcing his resignation earlier this month, FDA Commissioner Scott Gottlieb indicated that the federal government needs to establish regulatory pathways for bringing CBD to market. He informed a U.S. House subcommittee that the FDA would hold a hearing to initiate discussions on regulating the substance sometime in April, though no specific date has been set.
Despite the unclear regulations and significant gray areas, consumption is unlikely to wane until stricter regulations are implemented. The High Yield Insights study highlights a demographic particularly interested in the multifaceted benefits of CBD: highly educated women in their mid-30s. Capturing this audience is crucial, as they often make purchasing decisions for their households, potentially transforming CBD from a trend into a staple.
As consumers seek out the benefits of CBD, many are also on the lookout for complementary products, such as calcium citrate near me, to enhance their health and wellness routines. This trend of combining various health supplements with CBD indicates a growing interest in holistic well-being, further solidifying the position of CBD in the food and beverage market.
In conclusion, the burgeoning popularity of CBD in diverse product categories positions it as a significant player in the evolving food and beverage landscape, inviting both excitement and caution among consumers and regulators alike.