The BMC Beverage Blog
Cannabis is Growing Like a Weed
Written by: Brian Sudano
Cannabis has two active chemicals. There's CBD, which can both act as an antioxidant and help with relaxation. And then there's THC, a psycho hallucinogen, which is where the rubber really meets the road for impact. These products have many applications from vaping, food, beverage, supplements, pharmaceutical and wellness products. From a beverage perspective, beverage alcohol is not mixed with THC cannabis as its combined effects can be dangerous. However, mixing with CBD could be beneficial.
A popular way to consume cannabis is through edibles, which are generally positioned to women based on current consumer research. The industry in some cases is treating cannabis like a food, suggesting parings with different meals. This pairing strategy certainly has worked with cocktails, wine and craft beer and we see a genuinely interesting opportunity for cannabis here.
Although data is mixed at this point, it is believed that cannabis will generally have a greater negative impact on beer than wine and spirits. This is likely due to age demographics as beer drinkers tend to be younger. However, for non-alcoholic beverages, the growth of cannabis acceptance does appear to offer a good opportunity in both CBD and THC forms.
Other key facts regarding the industry:
- The market is currently projected to rise to an estimated $10B retail in 2018
- Projections currently have the industry growing to $24 billion by 2025
- Most growing of Cannabis is now done indoors with large commercial potential, e.g. it is the 2nd largest commodity business in Washington state, behind only apples, and is the world's most profitable crop
- Distribution is currently done through dispensaries and through licensed distributors
- Pricing was at $44.50 a gram in 2014 but has dropped to $12.77 in 2016
- Smoking of cannabis is declining and expected to continue declining
- However, vaping of cannabis continues to grow
- Female and elderly users are the fastest growing consumption demographic
- Wellness usage continues to grow
- Demand for reliable low-dose consumables continues to rise as well
- There is rapid growth in users within legalized recreational marijuana markets
- Reimagining the cannabis retail space and marketing message will significantly expand the user base
- The cannabis industry's social media footprint is just beginning to develop
- Coordination between growers and manufacturers can optimize yields and product performance
If you are interested in learning more about how Cannabis will revolutionize the food and beverage markets, visit https://www.beveragemarketing.com/shop/cannabis-series-bundle-plus.aspx