Industry Insights: Edibles & Drinkables

Cannabis consumables are big business. Learn what’s driving demand for THC drinks and edibles to give your brand a competitive edge.

Cannabis use and frequency are on the rise, and formats like edibles and THC drinks are leading the charge. Sure, traditional options like flower and vapes still occupy a significant portion of the market, but as the industry matures and diversifies, consumables are meeting unique demands from both new and seasoned consumers. 

While drinkables are still somewhat of a novelty, Mintel explains that these products have fewer consumers abandoning the category, and beverage consumption jumped from 20% to 27% between 2023-24. Out of the 2000 adults Mintel surveyed in their 2024 Cannabis in Food and Drink Report, 59% used edibles in the last three months, and 44% of those consumers are using more compared to the previous year.¹ 

Clearly, demand is growing, so you may wonder: Is it still viable for brands to expand their product portfolios to include edibles and THC beverages? Yes! With the right product formulation and positioning, cannabis edibles and drinkables can increase brand awareness, loyalty, and revenue.

To get you there, let’s examine what’s driving demand for these formats and the unique opportunities brands can use to stay competitive.

Using our Cloudburst Series flavor technology, we’ve designed Gellies so you can infuse gummies with the maximum amount of flavor. We use exotic flavor compounds natively found in cannabis to complement that natural dankness instead of clashing with it. From Liquid Diamonds, live resin, distillate, rosin, or even decarbed flower, Gellies pair perfectly every single time.

Cannabis Edible Consumers Crave Gummies

While edible formats have expanded to include various food products, gummies are the most popular, with 74% of consumers choosing to purchase them over brownies (51%) and cookies (49%). One of the biggest motivations for overall increased consumption is improved taste, with 42% agreeing that edibles have improved in quality over the previous 3 years.

Experience and interest are relatively similar when broken down by gender. It’s worth noting, however, that there are gender-specific opportunities. Men are more likely to consume cannabis throughout the day, so it may be beneficial to lure lapsed users from other product types. Conversely, women seem most engaged with edibles for wellness purposes (micro-dosing for continued positive effects, avoiding drawbacks associated with inhalables, etc.).

Brand loyalty is a significant hurdle in the edible category, though, with less than 30% of edibles consumers willing to go out of their way to find their preferred brand. This is where the drinkable category has a slight advantage.

Ready to expand into edibles and beverages RIGHT NOW? Get started today!

THC Beverages Consumers Demand Premium Quality

While curiosity and novelty are some of the primary motivators for initial drinkable purchases, roughly one-third of these consumers would go out of their way to find their favorite brand. This makes sense when you consider that of the 27% of consumers purchasing drinkables, 51% increased their consumption compared to the previous year.

During a three-month period, only 23% of women used drinkables compared to 31% of men. Outside of that difference, experience and interest were relatively even. However, women reportedly turn to drinkable products specifically for wellness purposes.

Women report turning to consumables when trying to avoid other formats, creating a clear "in" for brands. A focus on wellness can come from both additive qualities of a given format (i.e. other ingredients) or harm reduction (i.e. compared to inhalables). Reaching the quarter of lapsed users (in both subcategories) is another place to start.

Mintel

Cannabis in Food and Drink – US – 2024

While wellness drivers are significant and worth watching, recreational (46%) and social use (37%) are still the top consumption motivators for overall cannabis use. That being the case, it’s not a surprise that flavor and quality are key drivers for drinkables and edibles.

Like edibles, cannabis beverage consumers (38%) agree that product quality has improved over the past three years. Additionally, 45% agreed that improved taste was the second reason for increased consumption compared to the previous year (availability being the first reason).

Both product types can provide unique sensory experiences regarding texture and taste, and improvements in these areas have led to increased usage for all consumables. 

Opportunities in Cannabis Edibles

If you’re wondering whether or not your brand should expand to include edibles, the answer is a resounding “yes!” A better question is how to create edibles that stand out among increasing competition.

The first opportunity lies in innovative product formulations. Whether you’re creating infused cookies, savory snacks, or gummies, brands need to differentiate their products by giving consumers exciting flavors, enjoyable textures, and unique experiences. With heightened consumer interest in THC Gummies, flavor innovation is a non-negotiable aspect of formulation as competition grows.

Another aspect of edibles that provides opportunity is their broad demographic appeal. They’re a particularly flexible format that’s suited for seasoned and new users, ideal for those who want non-inhalable cannabis products, and products can range from fun and nostalgic (infused lollipops, cereal, brownies, etc.) to clinical and discreet (breath mints, lozenges, etc.). 

These features allow edibles to capture many of the positive features of cannabis while mitigating objections associated with other formats. Strategic formulations and product positioning can help edibles appeal to untapped demographics, such as older consumers.

Additionally, there’s an opportunity for both edibles and drinkables to appeal to consumers interested in wellness.

Edibles and drinkables have to toe the line between products purely for fun and products that can support wellness. Luckily, they are perhaps the best positioned cannabis format to do exactly that as they do not pose the risks of inhalables and are more able to flex towards fun flavors, textures, and product types.

Mintel

Cannabis in Food and Drink – US – 2024

Opportunities in THC Drinks

While expanding into edibles is a no-brainer, drinkables require excellence right out of the gate. That doesn’t mean THC drinks aren’t worth including in your product line; far from it! When done well, cannabis beverages can increase brand awareness, loyalty, and customer lifetime value. 

The first opportunity is quality beverage formulations. Admittedly, this is a massive oversimplification, so let us break it down for you. 

Early THC Drinks didn’t win over consumers because the overall experience wasn’t entirely pleasant. Advancements in cannabis extracts and flavor solutions, however, make it possible for brands to formulate beverages that offer enjoyable experiences with every sip. Mintel says, “Drinks, even THC-based ones, are meant to be enjoyed over time, making the experience more palpable: if taste is ‘off,’ each sip is a reminder.” This means that even established brands must continuously improve formulas to stay competitive. 

This opportunity won’t do brands any good, however, if they can’t keep products on the shelf. Supply chain snags quickly impact dispensary availability, which means new consumers won’t be introduced to your products, and potentially loyal customers will have fewer instances to develop strong connections to your brand. 

While this might sound like a hurdle, it also means that using ingredients with fewer supply chain issues gives your brand a competitive edge. Mintel explains that “In a category where brand is less impactful compared to other CPGs, being consistently on shelves boosts visibility and gives consumers permission to feel loyal."

Additionally, the ability to quickly update product lines with new flavors allows consumers to try something new without switching brands. Brands that can formulate high-quality products, ensure dispensary availability, and offer innovative flavors will have an immediate advantage in the drinkables category.

Abstrax Tech | Expand Product Portfolios with Confidence

Whether you’re expanding your product portfolio to include edibles, THC drinks, or both, we’ll help you formulate products that stand out for all the right reasons and gain loyal customers. 

Have a signature flavor? Want custom experiences? Cultivar-specific aromas? With our expert formulation assistance, a database of over 1,000 strain profiles, and our high-intensity Cloudburst Technology, we can help you create endless flavor variations that keep your customers on the edge of their seats.

We’ll help you deliver the same flavor in multiple applications to cement your signature flavor across product types, from the best-tasting gummies to thirst-quenching THC beverages. Between our industry-changing Gellies and our water-soluble flavor solutions, we have the technology and expertise to help you formulate innovative products.

Ready to formulate the ultimate infused products that give your customers the exact flavor and sensorial effects they want? Contact us today and expand your product portfolio with confidence.

Schedule a free consultation with our formulation experts and enhance your product portfolio today!

1. Scott, Michelle. (2024, October 17). Cannabis in Food and Drink – US – 2024. [Market Report]. Mintel. https://www.mintel.com/

2. DiGirolamo, Vince. (2024, December 31). Cannabis Retail: Positioning and Marketing – US – 2024. [Market Report]. Mintel. https://www.mintel.com/

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