BOULDER, Colo. — October 11, 2018 —Edibles sales are on track to reach more than $4.1 billion by 2022, but that could prove a fraction of the sector’s potential now that major consumer packaged goods (CPG) companies are entering the industry according to the “The Tasty Future of Cannabis Edibles” report released today by Arcview Market Research in partnership with BDS Analytics. By 2018, consumer spending on cannabis-based food and drink is projected to reach $1.5 billion in United States and Canada.
Spending on cannabis-infused food and drink reached an estimated $1 billion in 2017 in the United States and Canada, representing around 11.4% of the total $9.1 billion in those two markets. According to the report, the majority of cannabis edibles sold in the United States fall into the candy and chocolate categories, which accounted for an estimated $598 million in sales in 2017, or just over 60% of the $991 million in total U.S. consumer spending on cannabis edibles.
“Established big-brand food and beverage companies are beginning to take notice of the cannabis edibles market and this is likely just the tip of the iceberg,” said Troy Dayton, CEO of Arcview Market Research. “As the edibles business grows and regulatory fears ease, the pace of intra-industry mergers and outside acquisitions will increase as well.”
According to the report, the trending shift toward consumables will continue over the next five years, with flower’s share of total spending dropping from 50% in 2017 to just 36% in 2022. Edibles is forecasted to grow from 12% to 14% in that time frame.
“Consumers in front-running adult-use markets within the United States have significantly shifted their spending over recent years to other categories of cannabis consumables, especially into concentrates and edibles,” said Tom Adams, Editor-in-Chief at Arcview Market Research and Principal Analyst at BDS Analytics. “The edibles markets’ growth provides an early opportunity for investment in a cannabis sub-sector that is quickly growing, brand-focused, and full of opportunity for new and innovative products.”
The 40+ page report is available for $297, or as part of the Cannabis Intelligence Briefing Series subscription service from Arcview Market Research and BDS Analytics for $1,975. To purchase the report, click here.
About Arcview Market Research:
Since 2011, Arcview Market Research has published over 20 reports analyzing and forecasting the rapidly evolving cannabis space. Arcview’s flagship annual report, The State of Legal Marijuana Markets has become the industry standard for market analysis and data in the sector. In 2017, Arcview Market Research partnered with BDS Analytics to add more robust point-of-sale data and consumer insights to its offerings. Arcview Market Research is a project of The Arcview Group. Founded in 2010, The Arcview Group is responsible for a number of groundbreaking ventures in the cannabis industry. The Arcview Investor Network includes more than 600 accredited investors who have put more than $190 million behind 180 companies. In 2015 Arcview became a partner in Canopy, the first seed-stage mentor-driven business accelerator. Arcview is also co-founder of Cannasure Insurance Services, the leading provider of business insurance to the cannabis industry. Forbes Magazine recently named Arcview among the top 5 financial firms in the cannabis sector.
About BDS Analytics:
Headquartered in Boulder, Colo., BDS Analytics provides businesses with comprehensive, actionable, and accurate cannabis market intelligence and consumer research. The company provides a holistic understanding of the cannabis market by producing insights from dispensary point-of-sale systems through its market-leading GreenEdgeTM platform, driving consumer research with its Cannabis Insights Group, and generating market-wide cannabis industry financial projections through its Industry Intelligence Group. To learn more about how you can utilize BDS Analytics’ superior market research, please visit www.bdsanalytics.com.
North 6th Agency (for BDS Analytics)