The future of cannabis in the food industry can only be described in one way: a business for billions. Cannabis is already legal, or in the process of being legalized in more than 25 countries worldwide. Its ongoing legalization is a historic moment in development of the food and beverage sectors. Some compare it to the fall of the alcohol ban, but with much longer-lasting effects on health, science, and biotechnology.
At Botanicam, you can find a huge variety of products with CBD, from hemp oil for soothing the nervous system to skin balms. If you want to learn what the future holds for CBD, you can keep reading this article.
What is the use Cannabis?
The use of cannabis and its active ingredients for medical purposes is associated with the preparation of various organic and synthetic products. In many countries, the Mexican term “marijuana” is used for cannabis leaves. Hashish is prepared from the glands of the plant and has a higher concentration of active ingredients than dried cannabis.
CBD is legal in most states in the US. Europe is relatively conservative on cannabis. The governments of Netherlands, Portugal, Switzerland, Spain, the Czech Republic, Estonia, and Germany are more liberal. In recent years, studies have emerged on the therapeutic properties of cannabis and its active ingredients. For this reason, some EU countries have legalized the use of the plant for medical purposes, while other countries are considering changes in their legislation.
The World Health Organization has recommended that one of the ingredients in cannabis, cannabidiol (CBD), not be classified as a controlled substance.
There Is Still No Single Approach to Cannabis Use
However, there is still no single global approach to the use of cannabis in medicine or for entertainment. Studies to date have shown that cannabis can stimulate appetite (for weight loss due to AIDS) and relieve symptoms of mental illness, epilepsy, asthma, cancer or Alzheimer’s. It is believed that it can reduce menstrual pain and reduce the risk of obesity and diabetes.
The global market for cannabis-containing products will reach $ 176 million by 2033
It is estimated that in 15 years the global market for cannabis-containing products will reach $ 176 million. This nascent industry, analysts say, has the potential to have a major impact on the beverage and food sector, becoming in a few years a multibillion-dollar business originally centered in North America. In the United States, several states have legalized cannabis, and in October 2018, Canada allowed its use. Currently, several multinational beverage companies are entering the cannabis business.
The Cannabis Business Is Not Limited to Food and Drink
The Canadian company Hill Street Beverage Co plans to offer a full portfolio of cannabis drinks – wine, beer and cocktail products. The Economist points out that Coca-Cola is also looking closely at the cannabis beverage sector, and in particular the use of the cannabidiol component (CBD). The extract is not psychoactive and is already widely used as a dietary supplement. Consumers say it helps with anxiety, chronic pain and mood disorders. Smaller companies are already adding CBD to soft drinks and bottled water. Several major trends are already emerging, Just Drinks analysts say: sensible consumption, changing consumer attitudes, and focusing on healthy living.
Is There Consumer Interest in Cannabis Products?
Generations of millennials and the so-called Generation Z are increasingly moving away from alcohol in the UK, said Spyros Malandrakis, head of the Euromonitor International study on alcohol consumption. This has led to an increase in the production of low-alcohol and soft drinks. Consumers’ attitudes towards alcohol and cannabis are moving in opposite directions, especially among younger users, with a growing number of people perceiving cannabis as less harmful and toxic than alcohol.
“Cannabis gives food and beverage companies a new tool for product development,” said Linda Gilbert, an expert at BDS Analytics. “Consumer demand is growing as part of the drive for a healthier lifestyle. Apart from alcoholic beverages, the potential of cannabis is for investment in sports drinks, snacks, pastries – the possibilities are endless.
What Volume Will the Cannabis Industry Reach?
All this raises new questions: what volume will the cannabis industry reach, where will the consumers come from, what will be the legal environment for cannabis in the next few years?
Another bold prognosis: The legal cannabis market will reach $ 32 billion by 2022, according to the sixth edition of the State of Legal Marijuana Markets, compiled by Arcview Market Research in partnership with BDS Analytics. The United States is estimated to generate $ 23.4 billion, Canada $ 5.5 billion and the rest of the world $ 3.1 billion. Cowen Equity Research predicts that the total cannabis market in the United States will reach $ 75 billion by 2030.
What Will Be the User Profile?
Future users of cannabis products are expected to be in the age group between 20 and 35, but this framework will expand rapidly. Baby Boomers (born 1946-1964) are one of the fastest-growing segments in the United States. Maybe, because some of them used cannabis in college but are now returning to it. Others take it to manage pain and sleep.
Specialists also expect users of painkillers to be attracted to cannabidiol products. 40% of people in North America who regularly prescribe medication have contraindications to alcohol. However, such restrictions on cannabis products are almost unknown.