CBD products are growing in popularity, popping up on shelves within major retail outlets. However, the edible products infused with CBD are still illegal across the country.
That isn't stopping companies from taking a close look at the potential for the market, though.
Last week the FDA began hearings examining the potential de-regulation of CBD from hemp within food products. If legalized, this would have a major impacts on the U.S. consumer packaged goods industry, potentially becoming a $6 billion industry by 2025.
CBD has wellness benefits, something that today's shoppers are increasingly seeking out. A Nielsen report predicts that adaptogens and botanical hemp extracts that naturally contain CBD could be the next "big thing" in snacks as it the product can enhance focus, relaxation and assist in promoting general health and wellness.
Big name brands are currently searching for ways to reach consumers through the benefits that CBD has. Incorporating it into a snack category fits into an existing routine that may perform better than those that are more oriented around indulgence or infrequent occasions.
It is critical for government officials to recognize the market size prediction as to what legalization could mean. Despite its uncertainty, CPG food and drink companies should prepare for the next phase of opportunity as it is possible that laws will evolve.