Global Cannabis Edibles Market Size & Growth Trends Analysis Report

The increased legalization of cannabis across the globe is boosting the cannabis edibles industry by opening up new avenues for customer adoption and market expansion. The shifting consumer preferences towards more accessible and healthful ways to consume cannabis-infused products is the major factor driving the cannabis edibles market. as well as a greater awareness of the potential therapeutic benefits of cannabis-based products. The health-conscious people, who refrain from smoking cannabis and are looking to make smarter dietary choices will find the ingredients particularly tempting. To satisfy the tastes of a wide variety of consumers, companies have focused on improving flavors, quantity accuracy, and packaging through continuous innovation. Gummies and chocolates are the major selling cannabis-infused edibles. While some consumers enjoy consuming THC-rich edibles, others are more interested in CBD-rich edibles. These edibles are available in different strengths of THC levels, for consumer adaptability and ease. This product differentiation in terms of levels of dose has provided more acceptability in consumers who are new to cannabis effects. These small additions such as form, flavors, and precise dosing of cannabis-infused edibles have increased its appeal and are one of the major factors for the boost in the global cannabis edibles market.

Nonetheless, the industry faces significant obstacles, such as legal challenges across jurisdictions, coupled with consistent public disapproval associated with marijuana use. These factors hinder market expansion and have an impact on consumer confidence and compliance efforts. The cannabis edibles business offers a lot of room to grow and diversify, even in the face of obstacles. The growth in product formulations and extraction technology, along with geographic expansion as legalization moves forward, could increase market appeal and reach. Moreover, utilizing internet channels for advertising and sales as well as informing customers about the advantages and security of cannabis edibles will dispel stigma and boost adoption rates. Furthermore, strategic alliances provide opportunities to improve product quality, scalability, and regulatory compliance at every stage of the supply chain, from cultivation to distribution. Overall, the cannabis edibles business is expected to experience significant growth and innovation as consumer acceptance increases and regulatory landscapes change.

Impact of COVID-19

The COVID-19 pandemic affected several facets of production, distribution, and consumer behavior in the cannabis edibles industry worldwide. Cannabis edible’s initial supply chain interruptions and strict lockdowns made it difficult to find raw materials and packaging. The production and delivery were delayed as a result, which affected the products' availability on the market. While managing the cannabis business, regulatory bodies had a hard time responding to the crisis at the same time, which led to ambiguities over new product approvals, licensing procedures, and compliance requirements.

However, some notable changes also occurred in the behavior of consumers. With lockdown procedures in place, there was a noticeable shift in the distribution and purchase of cannabis products, especially edibles, towards online platforms. This change demonstrated how e-commerce platforms can withstand periods of restricted movement and still meet consumer demand. The cannabis-infused edibles saw an initial spike in demand as people looked for recreational and stress-relieving choices in an uncertain market.

Notwithstanding the obstacles the pandemic presented, it also created chances for market innovation. The businesses involved in cannabis products concentrated on creating novel tastes, forms, and packaging to address changing customer demands and security issues. Additionally, to spur economic recovery during the pandemic, some jurisdictions expedited the legalization process, creating new markets for cannabis treats. This development cleared the door for further growth prospects in the international cannabis edibles sector and highlighted the increasing recognition of cannabis as a necessary product in some governments.

Segmentation

The global cannabis edibles market is segmented into product type, cannabinoid content, and sales channel. The product type segment is further segmented into baked goods, confectionery, beverages, spreads, and others. The cannabinoid content is segmented into THC-dominant, CBD-dominant, and Balanced THC/CBD. The sales channel segment is further segmented into online, and offline.

Regional Analysis

The North American region dominated the cannabis edibles industry in 2023. Few states in the U.S. recognize cannabis as a medical or pharmacological treatment for a variety of diseases, including cancer, epilepsy, and Alzheimer's disease. In the fight to legalize marijuana globally, Canada has also taken the lead, helping the local industry expand. The significant number of American growers has stimulated demand and expanded the market, opening new profit margins for local businesses. Canada is the world's top producer of edible cannabis, with the U.S. following closely behind. Legalization in Canada for both recreational and medical uses made it a significant supplier and helped build well-established businesses. Many companies have entered the edibles market, providing a variety of goods like chocolates, beverages, and candies.

With the continuously evolving regulatory frameworks and increasing medical applications, Europe is now the second-largest cannabis industry. Trials in European countries have shown the effectiveness of medical marijuana, which is now legally prescribed for a variety of illnesses, including cancer and craving stimulation for individuals with AIDS. With the recent enactment of favorable regulations by several states, the market for marijuana products is expected to grow rapidly due to changing government regulations. Despite this trend, according to the European Commission on Drugs and Substance Abuse, there is currently no national government in Europe that supports the sale of recreational marijuana or the legalization of it. However, apart from Malta, Germany is one of the countries in Europe that is currently moving forward with the legalization of recreational marijuana use. The increasing use of medicinal cannabis products in European countries is expected to drive significant growth in the regional market. The regulation of cannabis edibles remains less clear and varies widely in Europe.

The Asia Pacific region's anticipated significant growth during the projection period is bolstered by the availability of raw materials and advancing industrialization. Moreover, the legalization of cannabis for personal use in various emerging nations is set to amplify this growth. For example, Thailand's recent legalization of cannabis cultivation is poised to stimulate consumption and positively influence the regional market. Cannabis edibles with THC levels less than 0.2% can be easily found in cafes in Thailand. Similarly, Australia and New Zealand allow the use of cannabis edibles in some parts of their country but the products must comply with stringent regulations to ensure safety. These evolving governmental policies, combined with expanding research into the medicinal advantages of cannabis, are projected to drive continued expansion throughout the area.

Competitive Analysis

The global market for cannabis edibles is fragmented, with a mix of domestic and foreign manufacturers. Expanding their distribution networks is a top priority for manufacturers to reach as many consumers as possible. To diversify product lines, strategic alliances and acquisitions are also being sought for. Moreover, participants' main tactic for improving offers and gaining a competitive edge is ongoing product innovation. The major players in the cannabis edibles market are CV Sciences, Tisodiol International, Elixinol Global Ltd, Charlotte's 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., and Zoetic International PLC, among others.

Tilray recently made three calculated acquisitions to broaden its offering in 2023. The purchase price of Truss Beverages, a Canadian company founded in 2018, was not disclosed when Tilray acquired it on August 18, 2023. Before that, on August 8, 2023, Tilray also closed the purchases of Redhook and the 1989-founded American brewery Breckenridge Brewery, strengthening its position in the beverage industry. These purchases are a reflection of Tilray's continuous attempts to broaden its product line and improve its standing in the North American and international markets.

Leading U.S. cannabis company Green Thumb Industries (GTI) has reportedly indicated interest in joining forces with Boston Beer in 2024. The deal, which intends to establish GTI as a significant cannabis player on a major stock exchange and enable Boston Beer to diversify into cannabis goods like prerolls, edibles, drinks, and vapes, was reportedly proposed by CEO Ben Kovler to Boston Beer founder Jim Koch in a letter. The idea coincides with a trend of convergence between the alcohol and cannabis businesses. Boston Beer, which has a market valuation of about USD 3.6 Billion, is still concentrating on its stand-alone business ventures despite the proposal.

In 2024, A conditional agreement was made to acquire Ananda Food Pty Ltd by Elixinol Wellness Limited for their cannabis food and animal products business for USD 3 Million. Similarly, Aurora Cannabis strengthened its global presence in the cannabis market through recent major acquisitions. The most recent acquisition by Aurora was of MedReleaf Australia in February 2024, for a sum of USD 32.6 Million to strengthen their foothold in the Australian market. On August 25, 2022, Aurora strengthened its operations in Canada by purchasing Bevo Farms, a Canadian company established in 1989, for USD 34.7 Million.

Also in 2024, Elevated Softgels, LLC was acquired by CV Sciences, Inc., a prominent consumer health company that specializes in hemp extracts and natural goods. Renowned for producing tinctures and encapsulated soft gels for the dietary supplement market, Elevated Softgels is renowned for its operational flexibility with small to big minimum order quantities. Elevated Softgels is now CV Sciences' wholly-owned subsidiary following the acquisition, which is set up as an equity transaction. This allows Elevated Softgels to improve production capacities and support the development of new products by obtaining FDA registration and GMP certification.

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The global cannabis edibles market is segmented as follows:

By Product Type (Revenue: USD Billion, 2019 – 2031)
●    Baked Goods
●    Confectionery
●    Beverages
●    Spreads
●    Others

By Cannabinoid Content (Revenue: USD Billion, 2019 – 2031)
●    THC-Dominant
●    CBD-Dominant
●    Balanced THC/CBD

By Sales Channel (Revenue: USD Billion, 2019 – 2031)
●    Online
●    Offline

By Region (Revenue: USD Billion, 2019 – 2031)

● North America
o U.S.
o Canada
o Mexico

● Europe
o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe

● Asia Pacific
o Australia
o Japan
o Thailand
o South Korea
o Rest of Asia Pacific

● Latin America
o Brazil
o Uruguay
o Rest of Latin America

● Africa
o South Africa
o Rest of Africa