Yes! Cannabis legalization is on a roll across America and Canada. North America is the second largest market share of the global cannabis industry in 2018. The future growth of the cannabis industry is in edibles.
People are becoming more comfortable around Marijuana these days. With that comfort, edibles are becoming our go to method of consumption.
I myself have gone from, “I’ll never utter the word Marijuana” to “everyone listen!” Sorry mom and dad.
According to “The Tasty Future of Cannabis Edibles” released by ArcView Market Research and BDS Analytics, cannabis edibles spending reached $1.4 billion this year. Sales are on track to bring in more than $4.1 billion by 2022.
This is why you see small companies jumping on the ship, but now large companies are beginning to invest.
This has caught the eyes of the some of the behemoths. Yup, beverage maker Constellation Brands’ added $4 billion investment. All of it into Canada’s Canopy Growth.
Discussions with Aurora Cannabis prompted a statement from Coca-Cola, stating: “We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world.”
Because they are growing like weeds. 🙂
Total flower spend will account for only 36% of total purchases in 2022, down from 50% in 2017. While edibles are set to grow from 12% to 14% within the same time frame.
The Brightfield Group estimates that the Canadian cannabis industry will reach $3.7 billion by the end of 2020. An increase from $1.6 billion it reached in 2019, according to a recent report. The Canadian edible beverage market will be worth at least $2.5 billion in 2022. Infused beverages expects to bring in $529 million more, according to a June forecast by Deloitte.
Legalized cannabis products, such as edibles, will reach $900 million in sales by 2020. Then $800 million by 2023.
For entrepreneurs who want to enter the cannabis industry, start with edibles. Deloitte’s survey results say that 59% of likely cannabis users intend to use cannabis.
New users find edibles to be a safer start to consuming cannabis. As one BeTheHippy reader said, “I like to eat, and I’ve never been a smoker.”
Infused edible cannabis may be “the most profitable category” among recently legalized products.
In the states covered in the BDS Analytics report, sweets are the most popular edible cannabis product.
Also, chocolate, tinctures and infusion foods are growing in popularity.
Dark chocolate and CBD-infused beverages will grow from $1 billion to $4.1 billion in 2017-2022. That’s a 192% growth in 5 years.
Edible beverages have doubled their market share in the last five years with a growth rate of over 50%.
Infused foods and beverage products are available in a variety of forms. Edible foods, concentrates, oils, extracts, beverages and more.
Flower concentrates have the highest market share. As of 2018 cannabis edibles market share of 15%. This includes cannabis oil, extracts, oils and extracts from cannabis.
BeTheHippy Edible Recipes!
Try out Midday Infused Cannabis Coffee or our from scratch Infused Cannabis Hot Chocolate.
Also, check out our five part series on extracting cannabinoids for your pantry.
Business Growth for Edible Cannabis
Whether used for recreational or medicinal purposes, the cannabis industry is growing fast.
The Marijuana Business Daily shows edible cannabis will reach a value of 4.1 billion dollars by 2020. Compared to 2.5 billion dollars in 2015, the majority of which is in infusion drinks.
Cannabis One Holdings has amassed a portfolio that includes several popular edible brands. This year, the company plans to integrate edibles into its portfolio. Including oils, concentrates, extracts, tinctures and infusion foods.
Cannabis One does is not missing the growth potential of the edible cannabis market. Neither should we.
The Challenges of Edible Cannabis
The growing use of cannabis extracts is forecast to boost the market for cannabis edibles worldwide. Yet, many cannabis extracts used in edible marijuana preparation will face regulatory challenges. Judicial scrutiny may slow the growth of the global edible market in the coming years.
To address this problem, ERP software solutions will play compelling and necessary role in filling the gaps of food safety issues for producers. Both new and established companies are struggling with safety concerns.
Today’s infographic from Trait Biosciences outlines some of the challenges facing the market in the future.
The future looks tasty, doesn’t it!?
Disclaimer: this information is not medical advice and is purely for entertainment and education purposes. In no way do we condone the use of cannabis or it’s bi-products without the consent of your medical professional as well as abiding by your state and country laws.
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Stay groovy out there.