“Evolving Perceptions: The Rise of Cannabis in Consumer Products Amid Federal Restrictions”
Despite the fact that cannabis remains illegal at the federal level, public perception of the substance is evolving. Last year, President Trump signed the Farm Bill, which legalized hemp cultivation, making consumers and retailers more inclined to explore its possibilities. Although the FDA still imposes restrictions on hemp-derived CBD as a food additive, many retailers are now offering health and beauty products containing it, according to Nielsen. A study conducted by A.T. Kearney last year revealed that 40% of U.S. consumers are open to trying food products made with cannabis. This shift in attitudes has prompted numerous food and beverage companies to consider introducing cannabis-infused products, contributing to the anticipated high growth rate over the next five years.
Beer companies have already experienced success in this arena. The Nielsen report indicates that adults interested in cannabis are 41% more likely to consume beer. For instance, Lagunitas Brewing, a subsidiary of the Netherlands-based Heineken, offers its SuperCritical IPA, infused with aromatic marijuana terpenes, in California. Meanwhile, Ceria, led by former Blue Moon brewmaster Keith Villa, launched its THC brew Grainwave in Colorado, and Two Roots Brewing introduced its non-alcoholic “cannabier” in Nevada. Constellation and Molson Coors are also engaged in developing their own cannabis-infused beverages.
In contrast, larger food companies have been more cautious. Consumer packaged goods (CPG) giants typically take longer to adapt to trends and incorporate popular functional ingredients into their offerings, and cannabis is no exception. However, some companies are starting to express intentions to integrate cannabis into their products, pending FDA legalization. For instance, Ben & Jerry’s announced plans to offer CBD-infused ice cream. Additionally, Bloomberg reported that Coca-Cola was in discussions with Aurora Cannabis regarding a CBD-infused soda, although the beverage company later stated it currently has “no plans at this stage” to enter this market.
Nielsen’s data includes both marijuana and CBD-infused products, with the firm projecting that by 2025, 75% of the U.S. adult population will have consistent access to legal marijuana. The complete legalization of cannabis and its projected $35 billion impact on CPG sales hinges on several uncertainties. BDS Analytics also forecasts full U.S. legalization of all cannabis forms by 2021, relying on public sentiment reflected in state legalization efforts and evolving federal attitudes.
While the FDA held its first public hearing on cannabis and CBD this year, analysts suggest that it may take years before a clear path for product market entry is established. Although optimistic sales growth predictions could motivate more companies to enter the cannabis market, others may choose to remain cautious before developing products. The growing confidence and expected market expansion highlighted by research firms could encourage companies on the sidelines to take the plunge or prompt those already positioned to act. Notably, some brands may also explore innovative ingredients such as calcium citrate que contiene to enhance their offerings in this new landscape.
