Cannabis Market Update

sector - food & drink
type - market focus
Market Focus
Despite a lack of regulatory controls, the much-hyped cannabis-derived food and beverage market continues to grow and diversify, specifically for products infused with non-psychoactive cannabidiol (CBD).

Drivers: what’s happening

This nascent, fragmented industry is tipped for further stellar growth. According to a recent report by Global Beverages Analysts, the global CBD beverages market is now valued at £839.4m ($1bn, €947.9m) and is forecast to double in size by 2026, for instance.

Similarly, the cannabis-infused edibles market – a sector whose most popular products include gummies, capsules, tinctures and cookies – is expected to expand at a CAGR of 21.74% over the next three years, according to a new report by Technavio.

‘From a customer point of view, CBD has become increasingly popular, with one in five people in the UK (13.7m people) having used a CBD product in 2020,’ says Eoin Keenan, co-founder and CEO of CBD beverage brand Goodrays.

Several factors are driving the growth of this market: a decline in alcohol consumption by Millennials and Gen Z consumers, growing interest in the purported mood-enhancing and medicinal benefits of cannabis-derived products, and an increasing number of countries moving to legalise cannabis, such as Germany.

Published by:

16 January 2023

Author: Joe Bates

Image: The Annex cannabis dispensary designed by Superette, Toronto


Enjjoy is positioned as a high-quality range of hemp-derived products

Market shifts: what's new

Weed goes mainstream

What is encouraging new entrants into the cannabis market is the normalisation of its use in the 21 US states where recreational use is now legal. Just as Americans can order a pizza from a delivery app such as Deliveroo, they can now order cannabis products from e-commerce marketplaces such as Lantern, which has just launched its own smartphone app.

Even the humble American comfort food classic mac and cheese has been given a stoner makeover. Earlier this year US celebrity chef Todd English brought out two cannabis-infused mac and cheese ready meals through his own cannabis edibles company LastLeaf.

A multi-generational opportunity

Consumer interest in the mood-enhancing and wellness benefits of cannabis-derived food and drinks is not confined to Millennials and Gen Zers. Octogenarian home-maker, businesswomen and tv personality Martha Stewart, for example, has her own range of CBD products. Earlier this year, she launched new flavours Tropical Medley and Limited-Edition Pumpkin Spice into her popular Wellness Gummies line.

Controversial heavyweight champion-turned-cannabis entrepreneur Mike Tyson is a staunch promoter of flower/leaf marijuana. The 56-year-old former boxer sells a wide range of cannabis-infused edibles through his company, Tyson 2.0, including a new range of ear-shaped edibles, a reference to the infamous moment he bit fellow boxer Evander Holyfield’s ear in a heavyweight title fight.

‘Penetration in mature markets is even higher. In the US, 60% of adults have now tried a CBD product.’
Eoin Keenan, Goodrays

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