For several years, we have been bullish on the cannabis infused product market and continue to view the vertical as one of the most attractive parts of the entire industry.

According to Seattle-based data-analytics firm Headset, gummies continue to be the most popular cannabis infused product in the United States. The data-analytics firm reported that gummies have more than 70% market share in the six recreational cannabis markets it covers (California, Colorado, Michigan, Nevada, Oregon and Washington state).

According to retail sales data from the states that Headset tracks, revenue from the sale of edibles increased by more than 20% on a year-over-year basis. In 2020, the edible vertical in these markets generated $1.15 billion of sales. In 2021, this number spiked to $1.38 billion and we are favorable on how the sub sector has advanced over the last few years.

In the six states that Headset collects data from, sales of cannabis infused products grew faster than the entire cannabis market which recorded an 18.4% sales increase. Going forward, we expect the trend toward smokeless cannabis products to continue to outpace the growth of the entire cannabis sector and believe our readers should be aware of this trend.

During the last year, we have seen consolidation in the cannabis infused product market. In 2021, Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) acquired the option to purchase Wana Brands when federal legislation changes in the US. We considered the development to be significant and expect to see other large-scale cannabis companies follow Canopy Growth’s strategy and acquire leading US cannabis infused product brands.

From an innovation standpoint, there are several companies that are working to improve the bioavailability of cannabis infused products and shorten the amount of time it takes to feel the impact from them. As the sub sector continues to advance, we expect demand for cannabis infused products to continue to rise.

Two Canadian Licensed Producers (LPs) that are highly focused on the cannabis infused product market are Canopy Growth and Indiva Limited (TSX Venture: NDVA) (OTC: NDVAF). There are several other operators that are capitalizing on the vertical and believe our readers should be aware of this aspect of the industry

If you are interested in learning more about the companies that are capitalizing on the cannabis infused product market, please send an email to support@technical420.com with the subject “Leading Cannabis Edible Companies ” to be added to our distribution list.

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.