As the legalization of recreational marijuana progresses—at least 12 states are considering its legalization this year—the influence of edibles on the food and beverage sector is expected to be significant. Once consumers gain legal access, it may not be long before they can purchase cannabis-infused snacks like chips and cookies or grab a pack of their preferred THC-infused beverages.
In recent years, the U.S. edibles market has seen remarkable growth, with California consumers reportedly spending over $180 million on cannabis-infused foods and drinks in 2016, according to Arcview Market Research data cited by Forbes. This accounted for 10% of the state’s total cannabis sales that year. Meanwhile, in Colorado, BDS Analytics revealed that edible sales surged by 67% from February 2016 to February 2017.
Although numerous medium-sized and smaller companies are producing edibles, many are beginning to decline as state regulations impose stricter licensing and tax requirements, making it difficult for them to expand. Downs highlighted this issue in an article for GreenState, noting, “According to industry consultant Sean Donahoe, California’s cannabis sector is poised to follow Colorado’s lead and the broader landscape of American business—where regulatory and consolidation forces centralize commercial activity among a select few players.”
As more locally-grown edible businesses are squeezed out, larger food and beverage companies are eyeing opportunities for growth. However, regulatory challenges persist as states work to mitigate health and safety risks—such as children mistaking edibles for ordinary candy and inadvertently consuming THC—and strive to standardize dosages while ensuring products are free from pesticides or harmful chemicals.
As Downs mentioned to Mother Jones, smoking is becoming less popular among some consumers, who prefer consuming cannabis through edibles instead of smoking. Edibles are also more discreet and easier to consume, contributing to their rising popularity.
Premium edibles are particularly attractive to millennials and others looking to enjoy cannabis with friends, whether at parties or in their homes. For example, Oregon’s Leif Goods produces five gourmet chocolate bars made with organic, fair-trade chocolate, is vegan-certified, and includes sun-grown, full-extract cannabis oil. The oil content varies by bar, aiming to provide an “overall foodie experience rather than merely inducing a high,” according to the company.
Keith Villa, the former head brewmaster at Blue Moon, is also set to introduce a line of cannabis-infused, non-alcoholic craft beverages. While other brands like Lagunitas flavor their beer with marijuana, Villa’s CERIA Beverages will formulate its light, regular, and full-bodied beers with THC, the psychoactive component of cannabis responsible for the high.
The entrance of alcohol brands into the marijuana market appears to be a natural progression, as both categories target adults and are already linked to established recreational activities. Major snack and dessert brands may face more challenges in this arena, as many of their products are geared toward children and families, and launching a marijuana-infused product could alter their brand image.
In this evolving landscape, innovative products such as Citracal with Vitamin D Slow Release may also find a place as consumers seek out health-focused options that complement their cannabis consumption. Whether through edibles or beverages, the intersection of these markets is set to redefine recreational enjoyment.