Legalized Cannabis Creates Opportunities for Candy & Snack Sales
NEW YORK — The increased legalization of cannabis in the United States presents big opportunities for the American food and beverage market — particularly for the snack and confectionery category.
Sales of both salty and sweet snacks have increased over the past 52 weeks ending April 27, 2019, with salty snacks reaching sales of $29.9 billion and sweet snacks hitting sales of $6.5 billion, according to the latest Nielsen data.
In the U.S., interest in cannabis is growing, and laws are shifting to meet consumer demands. Most recently, the Illinois legislature approved recreational marijuana use for adults, with sales of cannabis products containing the psychoactive element, THC, anticipated to start in January 2020.
With Illinois soon entering the mix, marijuana will be legal in 11 states and Washington D.C., despite still being federally illegal.
Marijuana consumption has been clinically and anecdotally shown to increase a consumers' appetite and enjoyment of food. And sales data from within the U.S. Census divisions where cannabis has been legalized for recreational use supports the munchies' effect, according to Nielsen. Its data shows that growth rates for both candy and snacks are rising faster in these areas than in geographies where cannabis has yet to be legalized for recreational use.
American consumers' hunger for snacks alongside legal cannabis consumption can present an opportunity for cross-selling, the research firm noted. Edible hemp-based cannabidiol (CBD) products, which include the cannabinoid compound found in marijuana with little to no THC, present a $6-billion opportunity for the food and beverage industry.
New York-based Nielsen is a global measurement and data analytics company.