As the legalization of marijuana spreads to additional nations and states in the United States, prominent food and beverage firms are progressively dipping their toes into the $20.5 billion global cannabis industry. According to B2B research firm Markets, sales of cannabis products will reach $90.4 billion worldwide by 2026, representing a compound annual growth rate of 28% in value.
Many of the sales increases are likely to come from North America, and the U.S. market is humming with potential prospects for foods and drinks infused with the cannabidiol (CBD), a non psychoactive chemical found in cannabis plants.
According to New Frontier Data’s 2020 study Cannabis-Infused Products: U.S. Consumer Experience & Demand, 28% of U.S. people have purchased a CBD product at least once, and sales of CBD edibles (food, candy, and drinks) at mainstream retail outlets are expected to reach $5.7 billion in 2024.
A Positive Image
Because they tap into consumers’ increasing interest in functional foods and natural approaches to health care, CBD components are well-positioned for the mainstream food and beverage sector. According to the Natural Marketing Institute’s 2020 Whole Cannabis Study, 70% of consumers believe CBD has health advantages, including pain treatment (43%), reduced anxiety (39%), relaxation (33%), and reduced inflammation (33%). (27 percent ). detox centers in south florida
Data by category
The cannabis food and beverage sector is expanding in tandem with the broader market. Edible products—including infused foods and beverages—make up around 15% of dollar volume in the legalized cannabis industry, and growth is maintaining pace with the larger category.
The familiarity of cannabis-infused foods and beverages is part of their attraction to the general public. According to experts, edibles are a particularly accessible product form.” She claims that 73 percent of cannabis users eat edibles, with 33 percent preferring them to inhalable or topical medicines.
An industry on the verge of reaching new heights
The idea of federal cannabis reform has piqued the public’s interest throughout the last year.
Wrigley’s firm, Parallel, would be one of the industry’s giants if it could establish a widespread brand on the level of Wrigley gum or Coca-Cola.
That would fit with a scenario presented to The Cannigma by various analysts, according to which the future of adult-use cannabis would likely mirror the beer industry in the United States, with multinational companies surviving alongside artisanal brewers with a large market share of their own.
Federal reform’s potency
Federal cannabis reform that allows for interstate trade inside the United States, as well as perhaps worldwide, might expand these possibilities even further. Today, no cannabis brand has fully established itself throughout all cannabis markets, and no cannabis corporation has coverage across all cannabis markets.
Multi-state operators like Parallel would be able to grow and simplify their operations if this happened, but federal change might also allow some smaller enterprises and brands to operate nationally.
The perspective of the future
The inclusion of CBD as a food and beverage component by the federal government will be a key driver of industry expansion. The BDSA anticipates FDA approval of CBD as a food ingredient in late 2021 or early 2022, Nielsen said. According to experts, there are two potential consequences after the FDA approves CBD as a food additive:
- More supermarkets, drugstores, mass-market retailers, petrol and convenience stores, and other merchants are allowing in-store delivery of items.
- More mainstream and conventional CPG producers will begin to experiment and develop in this market.
Massive growth estimates aren’t limited to the recreational sector, of course. In the medicinal realm, some of the most dramatic advancements in cannabis, especially on an industry level, are taking place.
Last week, GW Pharmaceuticals, the only firm with FDA clearance for a cannabis-derived medication (Epidiolex), announced that it will be bought by Jazz Pharmaceuticals for $7.5 billion, reputedly the largest-ever deal in the medical cannabis business.
But where will all of this growth come from, and what is preventing cannabis from becoming a popular product? Although there is still a long way to go, according to Jon Lowen, co-founder of Surfside, marketing technology and analytic organization, the mainstream moment has arrived in many respects.