Cannabis has emerged as the new buzzword across many U.S. industries as a result of the 2018 Farm Bill, which legalized the cultivation, sale, and distribution of hemp. The overall market for cannabis-infused food and beverages achieved strong double-digit growth of over 70% in 2019, while CBD health and wellness products are expected to approach $1 billion by 2024 with strong growth each year. Driving market growth is strong word-of-mouth and growing consumer interest in new and natural ingredients.
Beverages account for the larger share of the market, with strong growth in 2019 driven by consumers seeking convenient and effective products that help them achieve their general well-being goals. Cannabis-infused food products such as snack bars also registered double-digit growth.
The market remains highly fragmented with more than 200 players; companies such as VCC Brands, Vybes, Sprig, 1906 New Highs, and Weller are examples of a few leading players. In terms of popular CBD-based products, Atlas Edibles’ Stratus, Good CBD granola bites, and Snaac CBD’s snack bar are just a few of them.
Convenience stores account for the largest share among all distribution channels, followed by dispensaries, which are popular for offering products with higher proportions of THC. Some examples of retail outlets that offer CBD products include Lucky’s Market, Fairway, and Sprouts. Some dispensaries offering cannabis-infused products are Ajoya Louisville, MedMen, and East of Eden. Online sales, on the other hand, are expected to grow at a fast pace in the coming years.
Kline’s recently published Cannabis in Food & Beverages: U.S. Market Assessment and Opportunities evaluates key trends, current regulatory and legal status, distribution channels, and the outlook for cannabis-infused food and beverages. CBD for Health and Wellness: U.S. Market Analysis and Opportunities and Cannabis Beauty: U.S. Market Analysis and Opportunities are two additional studies to complete our in-depth coverage on this topic. Both studies provide valuable insights into the market, product claims, regulations, competition, marketing channels, and more.