Cannabis Insight: Consumer Perceptions and the Innovation Horizon
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Cannabis Insight:
Consumer Perceptions and
the Innovation Horizon
Cannabis continues to be a category poised for growth in the food
and beverage industry with consumers projected to spend $3 billion
on cannabis infused products in 2020. In the time of the COVID-19
pandemic and recovery, consumers have sought solace in cannabis
edibles and CBD products to quell their anxiety and find relief. In
this report, we share details from a proprietary FONA survey into
the drivers and preferences of the cannabis consumer. Our research
shows that consumers desire high quality, reliable cannabis products
that taste exceptional. And with new markets emerging in Illinois
and Michigan, cannabis infused treats are primed for innovation.
From ultra-low doses to CBD dalgona coffee to cinnamon-sugar
dusted chocolate bars, let’s dive into cannabis, currently.
Cannabis, Currently
In 2019 the global cannabis industry generated an estimated $14.9 billion, up EDIBLES U.S. 2020
nearly 46% from 2018, which saw just 17% growth to $10.2 billion. In the U.S. GROWTH PROJECTIONS
alone, consumers are projected to spend nearly $3 billion on cannabis
infused products in 2020, says New Frontier Data. A majority of U.S. growth
will come from recreational markets in newly legalized states like Michigan and Illinois,
and new medical markets in unexpected states like Missouri and Arkansas—but growth
won’t stop there. Voters and lawmakers could potentially approve recreational markets
in New York, New Jersey, Pennsylvania, Rhode Island and other states in the coming
months. BAKED GOODS:
Annual growth of 14%,
reaching $748.1 million
CONFECTIONS:
Annual growth of 16%,
reaching $2.2 billion
BEVERAGES:
Annual growth of 15%,
reaching $587.8 million
Covid-19 & Cannabis
COVID-19 has naturally affected every market in
2020, and the cannabis market is no different. Edibles
sales skyrocketed in the U.S. amidst nationwide stay
at home orders—in the week of March 9-15, 2020,
edibles sales were up 10.6%.
Digging into the market drivers, it’s no surprise that
edibles use surged Spring 2020. Two of the top
reasons for cannabis use is stress reduction and
anxiety relief—two emotions that have swept the
nation during the COVID-19 pandemic. In fact, 75%
of US consumers who live in legal states and who
use cannabis say they use it to relax.
PRODUCTS OF NOTE:
CODA SIGNATURE COFFEE & DOUGHNUTS EFEX CHILL SOUR WATERMELON GUMMIES
MILK CHOCOLATE BAR
A 3:1 THC-to-CBD hybrid, each gummy con-
Contains 30g THC per serving and is described tains 10mg THC and 3.3mg of CBD for a calm,
to taste like coffee, creamy milk chocolate, happy buzz in both body and mind.
toasted milk, and is said to be euphoric and
relaxing.
Images Sourced: A Proper High
Consumer Perceptions
In February 2020, FONA launched our CBD Edibles and Beverages Innovation Horizon Consumer Survey, a nationwide survey of
current CBD users or consumers interested in trying CBD products. Below are a few top takeaways.
MORE FLAVORS, PLEASE! CANNABIS + CLEAN
From Baby Boomers to Generation Z, consumers prefer Consumer expectations for clean cannabis products mirror
product portfolios to contain between 4 to 6 flavors. what we see in food and beverage categories. Most important
Consumers crave flavor options when purchasing CBD claims ranked by consumers in our survey:
products, and don’t want to be limited to just one or two • Contains Nothing Artificial – 25% • Organic – 21%
choices. This indicates that LTO’s and seasonal flavors are • Non-GMO – 16% • Sugar-Free – 15%
ready for innovation! • Portion Controlled – 13%
Incredibles Blueberry Bliss White Chocolate Bar Fruit Slabs Tropical Haze Fruit Strips is fruit
is a baby blue hued 100mg THC-infused seasonal leather with 10mg THC per serving and is made
chocolate bar studded with blueberries and crispy with organic ingredients, contains no added
rice. (Image Source: Incredibles) sugar, is gluten free, and vegan.
TRUST + SAFETY
According to Mintel data, consumer trust is two-fold: the
quality (taste and ingredients) and the safety (effects) of a Consumers make similar choices when they’re
product both matter. From child-safe packaging to reliable
shopping for cannabis as they do when they’re
THC-content labeling, these measures help ensure canna-
bis-enhanced products are consumed safely—and it’s key to shopping for food, so people who have made
building consumer trust and positive brand association. In fact, organic and GMO-free an important part of
38% of consumers would be more willing to pay for a product their life will continue to look for those
they trust, and 32% would trust a product from a mainstream
products in cannabis as well.
brand they’re familiar with.
Source: Mintel Robert Arabian, founder of Pop-Up Potcorn
Popular Flavors in Top Flavors in
Cannabis Infused Food Cannabis Infused Drink
Strawberry Berry
Sour Watermelon Fruit Punch
Peach Pineapple
Citrus Orange Soda
Chocolate Root Beer
Lemon Watermelon
Raspberry Cranberry Lime
Mango Berry Lemonade
Dark Chocolate Sea Salt Cola
Pineapple & Coconut Chamomile Tea
Blue Raspberry Hops
Wildberry Matcha
Blackberry Pineapple Mango
Marionberry Pink Lemonade
Peach Mango Orange Mango
Huckleberry Apple Cider
Pineapple Habanero Hibiscus
Blueberry Grape Soda
Peppermint Cherry Limeade
Strawberry Kiwi Orange Cream Pie
Source: Headset - April -May 2020 Data
CBD Craze
The CBD market will reach $2.1 billion in 2020, and according to our
CBD Edibles and Beverages Innovation Horizon Consumer Survey, 43% of
US consumers have either tried or are interested in trying food and drink
that contains CBD as a functional ingredient. The functional benefits of
CBD, like pain relief, anti-inflammatory activity, anxiety reduction, and
beauty enhancement have attracted a lot of attention in the last few years.
PRODUCTS OF NOTE:
WYLD CANNABIS INFUSED PEACH GUMMIES CBD LIVING INSTANT COFFEE
A 2:1 CBD and THC hybrid gummy containing Delivers 7mg of CBD per serving, and comes in three
5mg of CBD and 2.5mg THC per serving. They are flavors: Black Coffee, Golden Milk Coffee, and Matcha
described as having a citrus-sweet flavor with a Coffee. The product launched in April 2020—just in time
relaxing affect that brings relief. for the wildly popular dalgona coffee trend you’ve been
seeing all over your social media.
Image Source: A Proper High Image Source: Trend Hunter
Three years ago, there was essentially no one searching about CBD online, but now
there are an estimated 6.4 million unique searches each month.
-Dr. John W. Ayers, co-author of UC San Diego’s Cannabis Study and Vice Chief of Innovation at the University of California
Infused Eats, Treats and Drinks Trends
Edibles spending in the U.S. and Canada NEED FOR SPEED: FAST-ACTING EDIBLES
topped $1 billion in 2017 and is forecasted to One of consumers’ top concerns with
grow to more than $4.1 billion by 2022. Let’s cannabis edibles is the time it takes to start
explore some trends we’ve spotted in cannabis feeling the effects. After consumption,
infused foods and drinks. products may take up to two hours to produce
effects, and in some cases the effects may
CANDY AND CHOCOL ATE REIGNS linger for up to six hours. This can often lead
When it comes to edibles, consumers have a to over-consumption and misdosing. Fast-
sweet tooth. 58% of cannabis users are acting edibles often only take 10-15 minutes
interested in trying or purchasing cannabis to feel effects, and most only last about two
infused chocolate, and 47% are interested in hours, making it easier for consumers to pace
sugar confectionery edibles. themselves and avoid misdosing.
KIVA CHURRO CANNABIS INFUSED WANA QUICK FAST-ACTING PHYX SPARKLING WATER
MILK CHOCOL ATE BAR GUMMIES
Comes in lime, grapefruit, and
Contains 100mg THC and is dusted Available in cocktail-inspired dragonfruit flavors and claims
in cinnamon sugar, claiming to taste flavors and have an onset of 5-15 effects can be felt in minutes and
like a golden, fried churro dipped in minutes with effects lasting up to only last about an hour.
delicious hot chocolate. three hours.
Image Source: A Proper High Image Source: Trend Hunter Image Source: Spherex
Infused Eats, Treats and Drinks Trends CONT'D
SMALL DOSES Spherex. “These canna-curious consumers FLAVOR CAN'T BE OUTDOSED
As recreational cannabis legalization don’t really know enough. They don’t want Consumers interested in cannabis infused
continues, more and more consumers will be something that will knock them out or that food and drink may have more adventurous
exploring edibles and potentially tastes really bad. They want something that palates—and therefore care about taste more
encountering a common problem for new tastes great and makes them feel better.” than anything else. 47% of consumers
cannabis users: overdosing. This often occurs interested in cannabis infused edibles reported
because of the delayed sensations and So what dose is best? One survey conducted that they were generally interested in trying
effects edibles have. “The experience when by Canadian-based Organigram suggests new foods and drinks, and when ranking
you eat too many edibles really isn’t pleasant. 5mg; and Mintel found that 33% of edibles attributes of importance in edibles,
It’s pretty intense,” said Niccolo Aieta, consumers prefer low-dose products consumers ranked taste (45%) as more
founder and chief technology officer for containing less than 10mg of THC per serving. important than dosage (37%).
MELLOWS COOKIES N' CREAM CANN GRAPEFRUIT ROSEMARY PL ATINUM COCOA BANANA
MARSHMALLOWS SOCIAL TONIC CREAM PIE GUMMY COINS
Contain 4mg THC per serving and A cannabis-infused seltzer water with Covered with cookie crumbs and
claims the high is intended to be 2mg of THC and 4mg of CBD. It is said deliver 5mg THC per serving.
calm and unwound.. to have a crisp flavor of citrus and a light
herbal aftertaste with a relaxing and
uplifting social effect.
Images Sourced: A Proper High
SOURCES
THE TAKEAWAYS •
•
Candy Industry
BDSA
•
•
Headset
Businesswire
• Prepared Foods • Kikoko
Consumers want safe, high quality edibles options, and they expect them to • MJ Biz Magazine • Leaflink List
taste great. In fact, consumers ranked taste in cannabis as even more important • Beverage Daily • Forbes
than dosage. With the impacts and future restrictions of COVID-19 still • Mintel • A Proper High
unknown, consumers will continue to seek cannabis as a natural way to unwind • Ganjapreneur • Trend Hunter
and relax. And with new markets opening up as more states legalize recreational • LA Times • Kiva Confections
use, brands should consider experimenting with new and exciting seasonal
flavors or expanding a product portfolio to include at least 4 four flavors to meet
consumers’ preference for more—not less— when it comes to edibles and flavor.
Let’s help you get started in this space. REQUEST YOUR
FREE
FLAVOR SAMPLE HERE
You Deserve More. Let's Get Started.
What does true partnership look like? You deserve a flavor partner ready to turn these
trends into the tangible.
Let FONA’s market insight and research experts get to work for you. Translate these
trends into bold new ideas for your brand. Increase market share and get to your
“what’s next.” Our technical flavor and product development experts are also at
your service to help meet the labeling and flavor profile needs for your products
to capitalize on this consumer trend. Let’s mesh the complexities of flavor with
your brand development, technical requirements and regulatory needs to deliver a
complete taste solution.
From concept to manufacturing, we’re here for you — every step of the way. Contact
our sales service department at 630.578.8600 to request a flavor sample or chat us
up at www.fona.com/contact-fona/
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