Cannabidiol article in the Times13 Jul 2019 12:42
Snack sales on a high in US states where cannabis legal
Snack manufacturers are enjoying a boost in sales in American states that have decriminalised marijuana.
The four-year compound annual growth rate of snack sales in these ten states is 7.2 per cent, compared with 6 per cent where cannabis remains illegal, a report by the market research company Nielsen found. The same rate of growth for confectionery is 2 per cent in decriminalised states and 1.3 per cent in illegal states.
Nielsen concluded that decriminalisation of the drug “presents big opportunities for the American food and beverage market, particularly for the snack and confectionery category”.
An academic study published this year appears to support the findings.
On average, sales of crisps rose by 5.3 per cent, cookies by 4.1 per cent and ice cream 3.1 per cent in Colorado, Oregon and Washington after the states decriminalised marijuana.
Scientific research suggests that tetrahydrocannabinol, the psychoactive ingredient in marijuana, releases a hormone that triggers hunger pangs and a neurotransmitter that increases appetite, which is nicknamed “the munchies”. Tetrahydrocannabinol also appears to enhance the smell and taste of food.
Coca-Cola and other large food and drink companies are experimenting with adding cannabidiol, a non-psychoactive constituent of cannabis thought to have calming and pain-relieving properties, to their products.
This market could be worth $16 billion by 2025, according to a recent estimate by Cowen, an investment bank.
Recreational use of cannabis remains a federal offence and the drug is grouped in the same category of illegal substances as heroin and cocaine. However, the law is not enforced, leaving states to set their own rules.
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