The cannabis edibles market is growing rapidly and is estimated to be worth over $4 billion by 2022.
The Arcview Group projection is no surprise to those who have been monitoring the stock market over the past few years. Edible sales grew 121 percent in 2017, and Colorado edibles tripled between 2014 and 2016. The edibles market already carries a wide range of products, from chocolates and gummies to mints, chewing gum and cooking oils. A Grizzle report found that edibles have a 92 percent profit margin, providing the companies have a vertical integration from grow to sale. “Legal cannabis-derived edible products, from candy and chocolate to infused beverages, is a sector worth watching over the next few years,” stated the report. “It has become clear that the legal cannabis market is about much more than inhaling the smoke of smoldering cannabis flower.”
Companies are carefully building portfolios to be prepared. Edible companies are already diversifying company portfolios with quality products and artisanal edibles, adding additional health benefits and creating unique products to help secure the higher price point for their products.
The projections on how much cannabis consumers in the United States and Canada will be spending on edibles annually depends on whether Canada legalizes edibles as planned. While cannabis is legal in Canada, edibles are still unregulated and illegal. Health Canada is expected to release regulations on edibles no later than October 17.
Part of the expected growth would come from states that do not currently allow edibles but are expected to very soon. States ready to take a bite out of the edibles market for themselves include Michigan and its legal cannabis market and Florida medical dispensaries, would be joining states such as California, Colorado, Nevada and Washington, where edibles are already legal.