Forbes
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As more states legalize cannabis for recreational use, edibles will become a huge market for entrepreneurs. In California alone, consumers gobbled up more than $180 million worth of marijuana-infused food and drinks last year, 10% of the states cannabis sales, according to Arcview Market Research.
And its not just California thats seeing a growing edibles market. Sales of pot-infused treats increased 121% last year in Washington state, where recreational marijuana is legal, according to cannabis analytics firm Headset Inc. And since Colorado first allowed recreational marijuana use, sales tripled from $17 million in the first quarter of 2014 to $53 million in the third quarter of 2016.
The reason for the explosive growth is that as the pot market expands, its starting to reach people who dont want to smoke. Overall the smoking rate among adults is down from 20.6% in 2009 to 16.8% in 2014. Edibles provide a discrete, smoke-free experience. And since they can command higher prices, edibles often account for 25 to 60% of a dispensarys profits.
That makes edibles an appealing slice of the pot pie, which was worth an estimated $7.2 billion in 2016, and is projected to grow up to 25% annually.
Matt Fosburg, founder of Ez THC, believes thats poised to change and that there will soon be a market for high-end cannabis candy. With a background in retail design and candy making, Fosburg wants to bring the trappings of high-end retail quality, consistency and a great in-store experience to the world of marijuana treats.
But just as weve seen markets for food like heirloom tomatoes and artisanal pickles, Fosburg believes there will be consumers who prefer a gourmet product.
From the beans we buy, to the THC distillate we source, every component of our bar is of the highest quality, Fosburg says. This is not your everyday machine-manufactured bar, but rather truly handmade.
Based in California, Fosburg can only sell his bars through medical marijuana dispensaries right now. That will change next year when Californias Proposition 64, the Adult Use of Marijuana Act (AUMA), goes into full effect. At that point, it will be legal for entrepreneurs to open brick-and-mortar stores outside of dispensaries as long as they obtain the necessary city and state licenses.
"Next" big thing Forbes pls.