There is much more to the expanding cannabis industry than just smoke. THC (tetrahydrocannabinol) and CBD (cannabidiol) can be ingested into the human body in a wide variety of ways to achieve the desired result whether it be “getting high” or relieving a specific medical condition.
They are called alternative consumption options and include eating and drinking.
Cannabis entrepreneurs and large corporations developing their own cannabis strategies, with the goal of expanding the cannabis market beyond smoking, vaping and oils, are aggressively looking into new ways to increase their product lines.
They see drinks, candy, cookies, snacks and other forms of edibles as the natural next step product category to develop as the number of U.S. states legalizing recreational use continues to grow.
According to projections in a recent report from ArcView Market Research and BDS Analytics, edible cannabis was a $1.5 billion industry last year and is on track to be more than $4 billion by 2022. Edibles are projected to grow from 12 percent to 14 percent of the total cannabis market by 2022, while flower drops from 50 percent to 36 percent. Edibles are clearly the growth area.
Now small companies, operating exclusively in states such as Colorado where recreational use is legal, are dominating the edibles market. But this will change as legalization spreads and each state sets its own regulations and taxes.
Smaller companies will have a difficult time meeting those different state-by-state regulations and competing with major corporations. TJ
TREND FORECAST
The Trends Journal has projected significant growth in the cannabis industry in 2019. This will be driven by three major factors: newer users, including Boomers, looking for inconspicuous ways to enjoy weed without smoking; more states will legalize recreational use, including New York state; and legislation on the Federal level to end Marijuana prohibition, such as H.R. 420, will motivate large corporations to go where the money is.