The Rise of Edibles
From dark chocolate to CBD-infused beverages, the cannabis edibles market is one of the most diverse and exciting markets for both consumers and businesses.
Cannabis edibles and beverages have already more than doubled in their share of the overall cannabis market since 2011. In addition, the cannabis consumer market in the US is expected to grow in size from $1 billion to $4.1 billion between the years 2017 and 2022.
The Specialty Food Association named cannabis edibles and beverages as a “Food Trend of the Year” for 2019 – a nod to the fact that edibles are going mainstream, even within the scope of the much larger food and beverages industry.
Not surprisingly, as this category emerges, there are many big brands exploring options in the edibles market. These include Constellation Brands, Molson Coors, Mondelez, Carl’s Jr, Anheuser Busch, Neal Brothers, and Coca-Cola. In particular, the beverages space seems to be hot: Constellation shelled out $4 billion for a stake in the largest cannabis company globally (Canopy Growth), and beer-maker Anheuser Busch partnered with Tilray to research THC and CBD drinks.
Smoking cannabis is still preferred by seasoned consumers, but other consumers lean more towards alternative forms of consumption. Proprietary research from New Frontier Data reveals the products that most appeal to potential U.S. cannabis consumers:
- 69% solid edibles
- 54% liquid edibles
- 44% topicals
- 36% joints or blunts
- 32% vaporizers (vapes)
- 29% tinctures
- 21% concentrates
- 19% pipes / water pipes
Edibles Product Development
Analysts predict that the legal marijuana market in the U.S. will outperform beer and wine sales by 2027. The growth in sales is mostly thanks to recreational marijuana use. Products such as edibles, infusions and concentrates, which include tinctures and salves are becoming extremely popular. In addition, users of edibles, infusions and concentrates are increasingly over 50 years of age, more risk averse and avoids smoking altogether.
Will your potential product cater to the fastest growing demographic of cannabis consumers? Contact us if you are considering entering the cannabis edibles product market in South Africa to avoid costly mistakes in this booming industry.
Sources in order of appearance