Cannabis Edibles Market

Global Cannabis Edibles Market Forecast

• Global cannabis edibles market revenue to jump from US$9.6 Bn in 2022 to US$27.2 Bn in 2030
• Market size projected to see expansion at an impressive CAGR of 13.9% during 2023 - 2030

Major Report Findings - Fairfield's Perspective

1. The market for cannabis edible products is primarily being driven by the growing health concerns about the high prevalence of respiratory diseases and the growing dislike to smoking cannabis.
2. The industry is being further boosted by the growing public knowledge of the numerous health benefits of cannabis edible goods, including the ability to alleviate nausea and vomiting in cancer patients, reduce pain and muscle spasms, and treat poor appetite and weight loss in cancer patients.
3. The government-imposed rigorous regulations and prohibitions on the supply and sale of marijuana and other cannabis products, which are implemented in many nations to prevent the misuse of these goods, severely impede the market's expansion.
4. In 2022, the conventional segment dominated the industry. It is possible that components frequently utilised to make traditional cannabis edibles don't always adhere to organic growing standards. Products in this category may include synthetic pesticides, GMOs, or crops grown using normal farming practices.
5. In 2022, the gummies category led the market. The gummies category offers a wide range of options, including gummies with a high THC content for recreational users and gummies with a balanced cannabis content for those looking for potential medicinal advantages without the euphoric effects.
6. The online category dominated the cannabis edibles market in 2022. Cannabis edible goods' simplicity of use and quick assimilation into the market on e-commerce platforms are primarily responsible for this segment's explosive rise.
7. North America region is anticipated to account for the highest share of the global cannabis edibles market. Demand for cannabis-infused foods and beverages, such as candies, chocolates, and flavoured beverages, has increased particularly noticeably in the US.
8. The Asia Pacific will have the significant rate of growth in the cannabis edibles market during the forecast period because of a rise in consumer understanding of and acceptance of cannabis-related goods. Although cannabis laws differ between nations in the area, many of them have authorised or decriminalised cannabis products for use in either medical or recreational settings.

A Look Back and a Look Forward - Comparative Analysis

The market for cannabis edibles will be driven by the growing awareness of the health advantages associated with marijuana. Additionally, growing consumer awareness of health issues and expanding healthcare demand are two macroeconomic variables that are favourably affecting the global market for cannabis edibles.

Furthermore, the market for cannabis edibles will increase at a rapid rate due to rising world population and technological advancement. Throughout the historical period of 2018-2022, the market had staggered growth. Due to convenience, privacy, and a desire to avoid smoking, the market for cannabis edibles has increased.

A greater range of edible goods, such as gummies, chocolates, beverages, and more, were sought after by consumers. Additionally, the sector witnessed ongoing innovation in product doses, tastes, and formulations. To meet the diverse tastes of consumers, businesses started creating new and enhanced culinary goods.

The market for cannabis edibles will benefit from increased prospects due to an increase in research and development activities and the introduction of new products. Additionally, the increasing usage of cannabis edibles as nutritional supplements and growing knowledge of the antioxidant and anti-ageing effects of cannabis and hemp will act as significant drivers that will further open new chances for the market's growth throughout the aforementioned projected period.

Key Growth Determinants

• Pacing Legalisation of Cannabis Worldwide

The market for edible cannabis is anticipated to grow significantly over the course of the forecast period because of the easing of several cannabis-related laws and regulations. The demand for cannabis-infused food items from food producers has increased due to the legalisation of cannabis in several countries worldwide.

For example, in October 2019, the Canadian government legalised cannabis usage because of the drug's medicinal properties and use in medical research. The number of customers opting for edible cannabis over smoking owing to its negative effects is the main element expected to drive the edible cannabis industry's growth.

• Growing Adoption by Healthcare Sector

The cannabis edibles are gaining popularity due to its health advantages for relieving stress and chronic pain. Businesses in the cannabis edibles sector are anticipated to work with academics to create a range of goods that will cater to the pharmaceutical and healthcare sectors globally.

Cannabis has been shown to be useful in cancer treatment, anxiety relief, and relaxation. Furthermore, cannabis is extremely effective in decreasing inflammation and relieving chronic pain.

People are making conscious attempts to stay fit and healthy amid the pandemic. Increasing government spending on healthcare contributes to the growing popularity and awareness of edible cannabis products around the world.

• Rising Sale Through E-commerce

Since the coronavirus outbreak, sales of consumables containing hemp and cannabis have skyrocketed. Due to legalisation in many nations, there are more and more internet dealers offering their goods aggressively.

The market for cannabis edibles is experiencing increased demand thanks to elements like rising offline and online channels, the development of the commerce sector, and quickly growing online firms.

Moreover, innovative products are being created by businesses in the cannabis edibles market to meet consumer demand. Players in the industry are vying for supremacy by employing strategic tactics in an environment of intense competition.

Furthermore, inventive assortment of cannabis products in different formats are becoming more readily available thanks to manufacturers in the cannabis edibles sector.

Major Growth Barriers

• Inadequate Knowledge About Cannabis

The lack of sufficient awareness and safety information about edible cannabis in developing nations is one of the main obstacles to the market for edible cannabis. The direct use of cannabis for recreational purposes, personal use, and marijuana growing, along with a dearth of data and stringent government laws, are expected to constrain the worldwide industry throughout the predicted period.

• Growing Stigma and Misconception Related to Cannabis

The development of the market for edible items infused with cannabis is significantly hampered by stigma and misconceptions about the drug. Numerous nations still forbid the use and use of cannabis, and even when it is permitted, there may be limitations.

Even when cannabis is taken for medical reasons, this may give the impression that marijuana is exceedingly toxic or dangerous. There are many people who are misinformed about cannabis and its effects, which contributes to stereotypes.

Key Trends and Opportunities to Look at

1. As a Viable Alternative for Cannabis Smokers

The cannabis edibles have been scientifically demonstrated to have a longer lasting effect on the consumer's brain and body than smoking cannabis or breathing a vape pen. Although it takes a little longer to take effect (approximately 30 minutes to 2 hours), the effects stay far longer than cannabis inhalation.

Furthermore, cannabis edibles blend the active chemical with other treats, which means that the cannabis is slowly resealed and will persist for a long time. Moreover, with increased awareness of the health concerns associated with smoking, people are turning to cannabis edibles.

2. Increasing Agricultural Dilemma for Marijuana Testing

Cannabis reproduces itself through biochemical processes that take place on the farm. Since it is the fact that marijuana is a psychoactive drug that is produced globally by mixing saturated fat with hot water, farmers face several difficulties in their agricultural lands.

The market for marijuana has grown significantly in North America. For instance, in October 2018, the use of marijuana for recreational purposes became lawful in a number of US and Canadian jurisdictions.

It is thus expected that the market for medicinal marijuana would grow significantly as a result of the legalisation of marijuana and advancements in clinical research.

3. Growing Business Opportunities

In the cannabis edibles sector, there are substantial revenue potential for food practitioners and manufacturers to expand their enterprises. Global popularity and legalisation of hemp and cannabis usage for health benefits is encouraging product makers to enhance production of high-quality cannabis edibles.

Since a few years, many countries have made the use of cannabis edibles lawful. After the COVID-19 pandemic subsided, there has been a massive increase in the consumption of cannabis edibles.

Consumers worldwide are focusing on acquiring tasty and delectable cannabis gummies, cannabis chocolate bars, chocolates, and other cannabis & hemp products due to increased awareness of the antioxidant and anti-ageing benefits of cannabis & hemp products.

How Does the Regulatory Scenario Shape this Industry?

The cannabis edibles sector is greatly influenced by the regulatory environment. The cornerstone of the market is laid by cannabis' legal status, whether it be for medical or recreational purposes. A wider customer base and more market potential for edibles exist in areas where cannabis is completely legalised.

Regulations frequently specify the permissible kinds of cannabis edibles as well as dosage restrictions. The kinds of items that are offered (such as gummies, chocolates, and beverages) as well as their potency may be affected by this. For instance, laws may limit the amount of cannabis or THC (a psychoactive and non-psychoactive component) in particular products. These laws affect the selection and strength of the products.

Fairfield’s Ranking Board

Top Segments

1. Conventional Category Continues to Dominate over Organic

The conventional segment dominated the market in 2022. Commonly used materials in the production of conventional cannabis edibles may not always meet the requirements of organic farming. Products created in this category may contain synthetic pesticides or genetically modified organisms (GMOs) and/or conventionally farmed crops.

In addition, compared to their organic counterparts, conventional cannabis edibles may be more readily accessible and occasionally less priced. Because of price, some consumers would pick conventional foods, while others might value taste and diversity more than organic certification.

The organic category is expected to grow significantly over the forecast period. To create edible cannabis products, organic agricultural techniques are used in production of the ingredients. Avoiding synthetic pesticides, herbicides, and genetically modified organisms (GMOs) is usually advised here.

Additionally, consumers who prefer natural and sustainable products and may be worried about the effects that conventional cultivation methods have on the environment and their health are drawn to organic cannabis edibles.

2. Gummies will be the Leading Category

In 2022, the gummies category dominated the market, and it is predicted to grow significantly over the course of the forecast period. Infused with cannabinoids like THC or cannabis, cannabis candies are a well-liked type of consumable. They often take the form of tiny, chewy sweets in a range of colours, sizes, and flavours.

Additionally, people like gummies because of their discretion, simplicity in administration, and tasty flavour. Instead of smoking or vaping, they provide users a convenient option to take advantage of the possible advantages of cannabis.

Furthermore, the supplements category is expected to expand significantly. They frequently take the form of concentrated cannabinoids in the form of capsules, soft gels, or tinctures. Additionally, the potential advantages to health and wellbeing that cannabis supplements may have is a common selling point.

Particularly cannabis supplements have grown in popularity due to claims that they provide calming, anti-inflammatory, and pain-relieving effects. In addition, supplements provide accurate dosing, which helps users control their cannabinoid intake. This may be crucial for those who use cannabis to treat specific medical conditions.

3. Online Retail Sales will be the Maximum

The online retail category held a majority of the market share. Cannabis edibles can now be bought on a variety of online platforms, such as e-commerce websites and smartphone apps. They frequently offer a vast selection of goods and allow the ease of purchasing from the privacy of one's home.

Additionally, internet shops frequently provide a wide variety of cannabis edibles with a variety of brands, tastes, dosages, and cannabinoid profiles (THC, cannabis, etc.). As a result, customers can look through options and select goods that suit their interests.

Over the forecasted years, the specialty stores category is expected to grow at a significant rate. Stores, also referred to as cannabis dispensaries or cannabis retail outlets, offer a real retail setting where customers can buy cannabis edibles.

In addition, the knowledgeable staff that works in these establishments frequently makes recommendations to consumers based on their tastes and needs. Newcomers to the cannabis market may find this advice especially useful.

Regional Frontrunners

North America Represents the Lion’s Share

The market for cannabis edibles is dominated by North America, and this pattern of dominance will flourish over the forecast period because of the existence of significant key players, changing lifestyles, and technological improvement in this area. The region is also expected to keep expanding due to more government control and marijuana legalisation.

Additionally, it is anticipated that the region's edible cannabis market will grow as a result of the recent legalisation of cannabis for medical use. In addition, cannabis has the potential to significantly lessen cancer-related symptoms and adverse effects from cancer therapy, such as pain, nausea, and vomiting. Research is currently being done to demonstrate this capability of cannabis in a safe manner and spread its use among the general public.

Asia Pacific to Demonstrate Exceptional Growth Potential

The availability of raw materials and the growing industrialisation of the Asia Pacific area are expected to contribute to the region's expected significant growth throughout the projection period. Marijuana use for personal consumption is becoming legal in several emerging nations.

The market for the Asia Pacific region is anticipated to grow in the forecast period because of these factors and government initiatives to legalise marijuana for medical use.

The regional governments are attempting to control the region's reckless use of cannabis and the sale of it illegally, thus market participants may have to make greater financial commitments to sell their products under legal conditions.

Fairfield’s Competitive Landscape Analysis

As per the Fairfield’s analysis, the market for cannabis edibles worldwide is fragmented, with many regional and international manufacturers present. Manufacturers are concentrating on enhancing their distribution networks to reach the greatest number of consumers. They are also concentrating on partnering with or purchasing various businesses to broaden their product line. Additionally, it is discovered that the participants' primary method for increasing their offerings and gaining a competitive edge over rivals is product innovation.

Who are the Leaders in Global Cannabis Edibles Space?

• Pure Kana
• CV Sciences
• Tisodiol International
• Elixinol Global Ltd
• Charlottes Web Holdings Inc
• Medical Marijuana Inc
• Aurora Cannabis Inc.
• MGC Pharmaceuticals Ltd.
• Creso Pharma Ltd.
• Cronos Group Inc
• Curaleaf Holdings Inc.
• Green Thumbs Industries Inc.
• Tilray Inc.
• TGOD Holdings Ltd.
• Zoetic International PLC
  
  

Key Company Developments

New Product Launches

• March 2023: The Starseed Medicinal Medical Group platform in Canada now offers the new cannabis 25mg Softgels from Irwin Naturals Inc. To accommodate a range of consumer preferences, the product line-up comprises multiple cannabis and THC compositions.
• October 2022: The launch of a new line of cannabis edibles under the name Good Tide was announced by Wyld, an Oregon-based manufacturer of cannabis in numerous states. The company's line of cannabis-infused sweets comes in a variety of flavours and was introduced at the cannabis industry's annual exhibition Hall of Flowers.

Mergers & Acquisitions

• April 2021: To increase the size of its clientele on the international market, Canopy Growth Company acquired Supreme Cannabis Corporation through a special contract. The corporation changed its product line to draw in new customers and boost the sector's revenue return.
• February 2021: 'BUDAPETS', an all-natural pet wellness company, was purchased by Pure Kana. Additionally, Pure Kana anticipates acquiring the nutritional company TRUBAR in the years to come, expanding its line of cannabis edibles.

Distribution Agreement

• March 2021: With the help of a law passed by Mexican politicians, marijuana use for recreational purposes is now allowed. It turned out to be an important turning point for this region and had the potential to grow into a sizable global market. The legislation included a clause allowing individuals to cultivate a specific number of marijuana plants on their property and consume marijuana.

An Expert’s Eye

Demand and Future Growth

The demand for cannabis edibles has been strong, and the market is expected to expand further in the coming years. The edibles market has become a significant player in the cannabis business as cannabis legalisation spreads across numerous locations.

Additionally, as more people become aware of the potential health benefits associated with cannabinoids, the market for cannabis edibles is expected to grow rapidly in the years to come.

Supply Side of the Market

According to our analysis, one of the main producers of cannabis edibles was Canada, followed by the US. Particularly in Canada, the legalisation of cannabis for both medicinal and recreational purposes made it a major supplier and enabled the expansion of an already well-established company.

Cannabis products, including edibles, are now subject to a strict regulatory framework in Canada, which legalised recreational use of the drug in October 2018. Many of Canadian businesses have entered the cannabis edibles market, creating a variety of goods, including gummies, chocolates, and beverages.

Due to different state-level legislation, the situation was also more complicated in the US. Local markets for cannabis edibles have expanded because of the legalisation of recreational marijuana in some states.

Global Cannabis Edibles Market is Segmented as Below:

By Nature

• Organic
• Conventional

By Type

• Chocolates & Candies
• Gummies
• Snacks
• Supplements
• Beverages
• Others

By Sales Channel

• Hypermarkets/Supermarkets
• Convenience Stores
• Specialty Stores
• Online Retail

By Geographic Coverage:

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Argentina
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Egypt
  • Nigeria
  • Rest of Middle East & Africa