Entrepreneurs Can Cash in on Marijuana Edible Business
In 2016, marijuana edibles in California accounted for $180 million in sales!
The marijuana edibles market is a segment in the cannabis industry that offers a huge opportunity for entrepreneurs. The good news is that it’s still in the infancy stage as seed-to-sale products are often focused on meeting the demands of pot smokers.
Colorado, the pioneer in recreational marijuana legalization, saw its edibles market jump from $17 million in 2014—the first year of implementation—to $53 million in two years.
The Growing Edibles Market
In 2016, marijuana edibles in California accounted for $180 million in sales, which represented 10% of the total sales of cannabis products, according to the ArcView Market Research. It’s a huge jump from a sector that barely existed just a few years ago.
The edibles market is projected to increase in growth. It was listed by the Specialty Food Association as among the food trends to watch this 2018, alongside Filipino cuisine, plant-based foods, alternative sweeteners, Middle Eastern cuisine, and upcycled products.
Meanwhile, “The Roadmap to a $57 Billion Worldwide Market” by BDS Analytics tracked about $669 million in sales for marijuana edibles in Colorado, California, Oregon, and Washington D.C.
Candy and chocolates have proven to be the most popular weed-infused products. Additional products that have gained traction in terms of acceptability are pot chips, cereal bars, beverages, and jerkies.
Slow and Steady
One reason why edibles didn’t gain much traction in the past, was that people didn’t have a way to measure an appropriate dosage. This resulted in consuming more due to the effects of edibles kicking in a little later compared to smoking cannabis. While the range varies, the effects can be felt from 30 minutes or up to a few hours after ingesting the product.
Recently, more people are buying edibles as the manufacturers are starting to perfect the system of production, labeling, and delivery. States also have created regulations regarding the THC per dose allowed in the edibles.
A Huge Opportunity to Cash In
Marijuana edibles are projected to increase in sales in the future. According to the Centers for Disease Control and Prevention, the number of cigarette smokers in the US dropped to historic lows to just 15.5 percent in 2016 compared to 20.9 percent in 2005. The number of cigarette smokers who quit also rose to 59% in 2016.
These former smokers are also likely to quit smoking pot but it doesn’t necessarily mean that they would be kicking out their love of marijuana. For instance, a new dad might want to set an example for his kid by throwing away all the bongs in the house, but edibles are inconspicuous if stored away responsibly.
Cannabis is a huge industry, where competition can be stiff. Only a handful of successful brands have managed to corner the edibles market, but there’s still a lot of room for growth, which gives entrepreneurs the opportunity to carve their own niche in marijuana-infused products.
Of course, breaking into the industry can be a challenge. Fortunately, there are many opportunities to invest in established companies. For instance, Plus Products raised $6 million in Series B funding in April 2018 after announcing that it’s going to release more THC-infused edibles in the California market. Other edibles manufacturers will need venture capital to expand their operations to meet the huge industry demand.