Table of Contents
Executive Summary
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- Market overview
- The issues
- Trust and safety are concerns
- Edibles and drinkables are hard to get right
- The opportunities
- Creativity moves brands beyond ready-to-eat options
- Cannabeverage is not Alcohol 2.0 (but adult beverage brands should still take note)
- Better-for-you brings opportunities
- Key trends
- Consumers are sweet on edibles
- Consumers slower to cheers with cannabis
- Good taste is always in style
- Canna-foodies are the key crossover
- What’s next
Market Landscape
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- A tale of two markets
- Adult beverages as key competitive set
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- Figure 1: Total US retail sales and forecast of alcoholic beverages, at current prices, 2014-24
- Figure 2: Total US retail sales of Adult Beverage, by segment, at current prices, 2014 and 2019 (est)
- Functionality may offer latitude on important attributes
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- Figure 3: Perception of food launches with functional claims versus without functional claims, Jan 2017-Dec 6, 2019
- A unique spin on beverage
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- Figure 4: Perception of drink launches with functional claims versus without functional claims, Jan 2017-Dec 6, 2019
Market Breakdown
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- Competition comes from everywhere
- Interest outpaces experience (for now)
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- Figure 5: Experience or interest in cannabis consumption methods, October 2019
- High quality highs worth the price
- Edibles, munchies and snacks – oh my!
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- Figure 6: Preferred snack flavor types, by age, November 2019
- Consumers are a little salty
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- Figure 7: Usage and interest in food and beverages with cannabis as an ingredient, January 2020
- General favorite flavors reinforce opportunities
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- Figure 8: Preferred snack flavor types, November 2019
- THC vs. ABV
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- Figure 9: Perceptions of alcoholic beverage and cannabis, July 2019
Market Perspective
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- Dosing can be tricky for both brands and consumers
- Changes in regulations can change the game
- Cost of entry is high for cannabis cuisine
- Medical edibles require a different approach
- Seeing through the smoke
Brand Landscape
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- Trend drivers – what motivates consumer behavior?
- Brands to watch
- California blazes the trail towards on premise
- Infused ingredients elevate at-home edibles
- Etsy x Cannabis = semi-homemade
- Boozeless adult beverage
- Pot gets a culinary edge
- Canna-cookbooks turn consumers into canna-chefs
- Stigma stifled by education (the more you know!)
The Consumer – What You Need to Know
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- Flavor comes first
- Cannabis creeps up on alcohol
- Familiarity finds favor with flavors
Usage and Interest
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- Sweet teeth and an eye for nutrition
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- Figure 10: Interest or experience in food /drink with cannabis ingredients, January 2020
- More men show thirst for cannabis
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- Figure 11: Interest In food /drink with cannabis ingredients, by gender, January 2020
- Youth more open to indulge
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- Figure 12: Interest in food /drink with cannabis ingredients, By Age, January 2020
- In good taste
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- Figure 13: Interest or experience in food /drink with cannabis ingredients, by important qualities, January 2020
Reasons for Interest
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- Edibles inspire curious consumers
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- Figure 14: Reasons for interest in food and beverage with cannabis as an ingredient, January 2020
- Women take their edibles seriously
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- Figure 15: Reasons for interest in food and beverage with cannabis as an ingredient, by gender January 2020
- Young and fun
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- Figure 16: Reasons for interest in food and beverage with cannabis as an ingredient, by age January 2020
- Easing into affluence
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- Figure 17: Reasons for interest in food and beverage with cannabis as an ingredient, by household income January 2020
Reasons for Lack of Interest
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- Non-users are just not that into edibles
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- Figure 18: Reasons for lack of interest in food and beverages with cannabis, January 2020
- Younger palates require more from cannabis
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- Figure 19: Reasons for lack of interest in food and beverages with cannabis, by age, January 2020
- Disinterest tracks with lifestyle incompatibility
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- Figure 20: Reasons for Lack of Interest in food and beverages with cannabis, by income, January 2020
Product Features
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- Taste over THC
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- Figure 21: Important attributes in food and beverage with cannabis, January 2020
- Women want more from edibles
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- Figure 22: Important attributes in food and beverage with cannabis, by gender, January 2020
- You can’t outdose bad taste
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- Figure 23: Important attributes in food and beverage with cannabis, by age, January 2020
- Affluence influences product attributes
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- Figure 24: Important attributes in food and beverage with cannabis, by household income, January 2020
- Talk about taste, but make it approachable
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- Figure 25: Important attributes in food and beverage with cannabis, by information source, January 2020
- Taste tracks with adventurous eaters
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- Figure 26: Attitudes and behaviors related to food and drink choices, by important attributes in food and beverage with cannabis as an added ingredient, January 2020
- Using beverages with cannabis as a replacement for alcohol
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- Figure 27: Attitudes and beliefs about cannabis in beverages – CHAID – Tree output, January 2020
Purchase Location
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- Cannabis requires specialization
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- Figure 28: Preferred purchase location for food and beverage with cannabis as an ingredient, January 2020
- Women emphasize specialization, medicalization
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- Figure 29: Preferred purchase location for food and beverage with cannabis as an ingredient, by gender, January 2020
- Youth open to on-premise
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- Figure 30: Preferred purchase location for food and beverage with cannabis as an ingredient, by age, January 2020
- Traditional retail appeals to affluence
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- Figure 31: Preferred purchase location for food and beverage with cannabis as an ingredient, by household income, January 2020
- Edibles require expertise
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- Figure 32: Preferred purchase location for food and beverage with cannabis as an ingredient, by product attributes, January 2020
- Pricing provides baseline for strong products
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- Figure 33: TURF Analysis – Product features, January 2020
Food Attitudes
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- Cultivate interest by emphasizing safety
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- Figure 34: Attitudes about food with cannabis as an ingredient, January 2020
- Expertise may build trust…
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- Figure 35: Attitudes about food with cannabis as an ingredient, by gender January 2020
Beverage Attitudes
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- Canna-beverages compete with adult beverages on multiple fronts
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- Figure 36: Attitudes about food with cannabis as an ingredient, by age, January 2020
- Spirits, beer get more competition from cannabis
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- Figure 37: Attitudes about beverage with cannabis as an ingredient, by gender January 2020
- Adult beverage trends will evolve with cannabis
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- Figure 38: Attitudes about beverage with cannabis as an ingredient, by age January 2020
- Parents have an eye on beverages
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- Figure 39: Attitudes about beverage with cannabis as an ingredient, by parental status January 2020
Discovery
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- Cultivate interest through established authority.
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- Figure 40: Discovery of food and beverage with cannabis as an ingredient, January 2020
- Women want personalization
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- Figure 41: Discovery of food and beverage with cannabis as an ingredient, by gender, January 2020
- Youth more open to culinary cannabis
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- Figure 42: Discovery of food and beverage with cannabis as an ingredient, by age January 2020
Purchase and Trial
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- Consumer trust comes first
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- Figure 43: Behavior related to food and beverage with cannabis as an ingredient, January 2020
- Women especially need to feel trust…
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- Figure 44: Behavior related to food and beverage with cannabis as an ingredient, by gender January 2020
- Young consumers are trust seekers
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- Figure 45: Behavior related to food and beverage with cannabis as an ingredient, by age, January 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- CHAID
- TURF
- Abbreviations and terms
- Abbreviations
- Terms
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