Click Here for the full report!

Cannabis continues to be a category poised for growth in the food and beverage industry with consumers projected to spend $3 billion on cannabis infused products in 2020. In the time of the COVID-19 pandemic and recovery, consumers have sought solace in cannabis edibles and CBD products to quell their anxiety and find relief. In this report, we share details from a proprietary survey into the drivers and preferences of the cannabis consumer. Our research shows that consumers desire high quality, reliable cannabis products that taste exceptional. And with new markets emerging in Illinois and Michigan, cannabis infused treats are primed for innovation. From ultra-low doses to CBD dalgona coffee to cinnamon-sugar dusted chocolate bars, let’s dive into cannabis, currently.

Cannabis, Currently

In 2019 the global cannabis industry generated an estimated $14.9 billion, up nearly 46% from 2018, which saw just 17% growth to $10.2 billion. In the U.S. alone, consumers are projected to spend nearly $3 billion on cannabis infused products in 2020, says New Frontier Data. A majority of U.S. growth will come from recreational markets in newly legalized states like Michigan and Illinois, and new medical markets in unexpected states like Missouri and Arkansas—but growth won’t stop there. Voters and lawmakers could potentially approve recreational markets in New York, New Jersey, Pennsylvania, Rhode Island and other states in the coming months.

Edibles U.S. 2020 Growth Projections

• Confections: Annual growth of 16%, reaching $2.2 billion
• Baked Goods: Annual growth of 14%, reaching $748.1 million
• Beverages: Annual growth of 15%, reaching $587.8 million

COVID-19 & Cannabis

COVID-19 has naturally affected every market in 2020, and the cannabis market is no different. Edibles sales skyrocketed in the U.S. amidst nationwide stay at home orders—in the week of March 9-15, 2020, edibles sales were up 10.6%.

Digging into the market drivers, it’s no surprise that edibles use surged Spring 2020. Two of the top reasons for cannabis use is stress reduction and anxiety relief—two emotions that have swept the nation during the COVID-19 pandemic. In fact, 75% of US consumers who live in legal states and who use cannabis say they use it to relax.

Products of Note:

Coda Signature Coffee & Doughnuts Milk Chocolate Bar contains 30g THC per serving and is described to taste like coffee, creamy milk chocolate, toasted milk, and is said to be euphoric and relaxing.

Efex Chill Sour Watermelon Gummies are a 3:1 THC-to-CBD hybrid, each gummy contains 10mg THC and 3.3mg of CBD for a calm, happy buzz in both body and mind.

Consumer Perceptions

In February 2020, FONA launched our CBD Edibles and Beverages Innovation Horizon Consumer Survey, a nationwide survey of current CBD users or consumers interested in trying CBD products. Here are some top takeaways.

More Flavors, Please!

From Baby Boomers to Generation Z, consumers prefer product portfolios to contain between 4 to 6 flavors. Consumers crave flavor options when purchasing CBD products, and don’t want to be limited to just one or two choices. This indicates that LTO’s and seasonal flavors are ready for innovation!

Incredibles Blueberry Bliss White Chocolate Bar is a baby blue hued 100mg THC-infused seasonal chocolate bar studded with blueberries and crispy rice.

Cannabis + Clean

Consumer expectations for clean cannabis products mirror what we see in food and beverage categories. Most important claims ranked by consumers in our survey: Contains Nothing Artificial – 25%, Organic – 21%, Non-GMO – 16%, Sugar-Free – 15%, and Portion Controlled – 13%.

Fruit Slabs Tropical Haze Fruit Strips is fruit leather with 10mg THC per serving and is made with organic ingredients, contains no added sugar, is gluten free, and vegan.

 “Consumers make similar choices when they’re shopping for cannabis as they do when they’re shopping for food, so people who have made organic and GMO-free an important part of their life will continue to look for those products in cannabis as well.” says Robert Arabian, founder of Pop-Up Potcorn.

Trust & Safety

According to Mintel data, consumer trust is two-fold: the quality (taste and ingredients) and the safety (effects) of a product both matter. From child-safe packaging to reliable THC-content labeling, these measures help ensure cannabis-enhanced products are consumed safely—and it’s key to building consumer trust and positive brand association. In fact, 38% of consumers would be more willing to pay for a product they trust, and 32% would trust a product from a mainstream brand they’re familiar with. Source: Mintel

Popular Flavors in Cannabis Infused Food

• Strawberry
• Sour Watermelon
• Peach
• Citrus
• Chocolate
• Lemon
• Raspberry
• Mango
• Dark Chocolate Sea Salt
• Pineapple & Coconut
• Blue Raspberry
• Wildberry
• Blackberry
• Marionberry
• Peach Mango
• Huckleberry
• Pineapple Habanero
• Blueberry
• Peppermint
• Strawberry Kiwi

Top Flavors in Cannabis Infused Drink

• Berry
• Fruit Punch
• Pineapple
• Orange Soda
• Root Beer
• Watermelon
• Cranberry Lime
• Berry Lemonade
• Cola
• Chamomile Tea
• Hops
• Matcha
• Pineapple Mango
• Pink Lemonade
• Orange Mango
• Apple Cider
• Hibiscus
• Grape Soda
• Cherry Limeade
• Orange Cream Pie

Source: Headset – April -May 2020 Data

CBD Craze

The CBD market will reach $2.1 billion in 2020, and according to our CBD Edibles and Beverages Innovation Horizon Consumer Survey, 43% of US consumers have either tried or are interested in trying food and drink that contains CBD as a functional ingredient.The functional benefits of CBD, like pain relief, anti-inflammatory activity, anxiety reduction, and beauty enhancement have attracted a lot of attention in the last few years.

Dr. John W. Ayers, co-author of UC San Diego’s Cannabis Study and vice chief of innovation at the University of California says, “Three years ago, there was essentially no one searching about CBD online, but now there are an estimated 6.4 million unique searches each month.”

Products of Note:

Wyld Cannabis Infused Peach Gummies are a 2:1 CBD and THC hybrid gummy containing 5mg of CBD and 2.5mg THC per serving. They are described as having a citrus-sweet flavor with a relaxing affect that brings relief.

CBD Living Instant Coffee delivers 7mg of CBD per serving, and comes in three flavors: Black Coffee, Golden Milk Coffee, and Matcha Coffee. The product launched in April 2020—just in time for the wildly popular dalgona coffee trend you’ve been seeing all over your social media.

Infused Eats, Treats and Drinks Trends

Edibles spending in the U.S. and Canada topped $1 billion in 2017 and is forecasted to grow to more than $4.1 billion by 2022. Let’s explore some trends we’ve spotted in cannabis infused foods and drinks.

Candy and Chocolate Reigns

When it comes to edibles, consumers have a sweet tooth. 58% of cannabis users are interested in trying or purchasing cannabis infused chocolate, and 47% are interested in sugar confectionery edibles.

Kiva Churro Cannabis Infused Milk Chocolate Bar contains 100mg THC and is dusted in cinnamon sugar, claiming to taste like a golden, fried churro dipped in delicious hot chocolate.

Need for Speed: Fast-Acting Edibles

One of consumers’ top concerns with cannabis edibles is the time it takes to start feeling the effects. After consumption, products may take up to two hours to produce effects, and in some cases the effects may linger for up to six hours. This can often lead to over-consumption and misdosing. Fast-acting edibles often only take 10-15 minutes to feel effects, and most only last about two hours, making it easier for consumers to pace themselves and avoid misdosing.

Wana Quick Fast-Acting Gummies are available in cocktail-inspired flavors and have an onset of 5-15 minutes with effects lasting up to three hours.

Phyx Sparkling Water comes in lime, grapefruit, and dragonfruit flavors and claims effects can be felt in minutes and only last about an hour.

Small Doses

As recreational cannabis legalization continues, more and more consumers will be exploring edibles and potentially encountering a common problem for new cannabis users: overdosing. This often occurs because of the delayed sensations and effects edibles have. “The experience when you eat too many edibles really isn’t pleasant. It’s pretty intense,” said Niccolo Aieta, founder and chief technology officer for Spherex. “These canna-curious consumers don’t really know enough. They don’t want something that will knock them out or that tastes really bad. They want something that tastes great and makes them feel better.”

So what dose is best? One survey conducted by Canadian-based Organigram suggests 5mg; and Mintel found that 33% of edibles consumers prefer low-dose products containing less than 10mg of THC per serving.

Cann Grapefruit Rosemary Social Tonic is a cannabis-infused seltzer water with 2mg of THC and 4mg of CBD. It is said to have a crisp flavor of citrus and a light herbal aftertaste with a relaxing and uplifting social effect.

Mellows Cookies N’ Cream Marshmallows contain 4mg THC per serving and claims the high is intended to be calm and unwound.

Flavor Can’t Be Out Dosed

Consumers interested in cannabis infused food and drink may have more adventurous palates—and therefore care about taste more than anything else. 47% of consumers interested in cannabis infused edibles reported that they were generally interested in trying new foods and drinks, and when ranking attributes of importance in edibles, consumers ranked taste (45%) as more important than dosage (37%).

Platinum Cocoa Banana Cream Pie Gummy Coins are covered with cookie crumbs and deliver 5mg THC per serving.

The Takeaways

Consumers want safe, high quality edibles options, and they expect them to taste great. In fact, consumers ranked taste in cannabis as even more important than dosage. With the impacts and future restrictions of COVID-19 still unknown, consumers will continue to seek cannabis as a natural way to unwind and relax. And with new markets opening up as more states legalize recreational use, brands should consider experimenting with new and exciting seasonal flavors or expanding a product portfolio to include at least 4 four flavors to meet consumers’ preference for more—not less— when it comes to edibles and flavor. Let’s help you get started in this space.

Click here for the full report!

Order your free flavor sample here.

You deserve more. Let’s get started.

What does true partnership look like? You deserve a flavor partner ready to turn these trends into the tangible.

Let FONA’s market insight and research experts get to work for you. Translate these trends into bold new ideas for your brand. Increase market share and get to your “what’s next.” Our technical flavor and product development experts are also at your service to help meet the labeling and flavor profile needs for your products to capitalize on this consumer trend. Let’s mesh the complexities of flavor with your brand development, technical requirements and regulatory needs to deliver a complete taste solution.

From concept to manufacturing, we’re here for you — every step of the way. Contact our sales service department at 630.578.8600 to request a flavor sample or chat us up at www.fona.com/contact-fona/

Sources in full report