The global chocolate market was already worth a massive $103 billion in 2017. It is expected to grow to about $161.56 billion in revenue by 2024. In the United States, chocolate sales now reach more than $21 billion annually. With such massive potential, it would only be strategic for cannabis companies, especially those who have perfected the edibles market through the years.
Chocolate remains to be one of the most popular guilty pleasures for many of the seven billion people around the world. For one, it stimulates people’s cravings because of its sophisticated texture and complex blend of natural ingredients.
Chocolate popularity translates to a booming industry
The global chocolate market was already worth a massive $103 billion in 2017. It is expected to grow to about $161.56 billion in revenue by 2024. In the United States, chocolate sales now reach more than $21 billion annually.
With such massive potential, it would only be strategic for cannabis companies, especially those who have perfected the edibles market through the years, to penetrate the chocolate market. This is on top of already sitting on the CBD market which investment bank Cowen & Co projects to be hitting $16 billion by 2025.
Cannabis companies entering the chocolate market
Several cannabis companies are already making chocolates infused with CBD. The number of these businesses expects to grow after the passage of the 2018 Farm Bill which made hemp-derived CBD legal across the 50 US states. To be clear, the legality of CBD made from marijuana still depends on the respective states laws.
While many companies are now entering the chocolate market, there are a few that have always been at the forefront of the market. One of them is Diamond CBD, an industry leader in CBD oils, edibles, and tinctures.
Diamond CBD’s chocolate line
Diamond CBD is one of the principal subsidiaries of PotNetwork Holdings, Inc. (OTCMKTS:POTN) is a publicly traded business. They act as a holdings company for numerous cannabis brands. Its other subsidiaries include First Capital Venture and PotNetwrok News Media group.
While others are scramming to develop products to address the swelling CBD market post-Farm Bill passage, Diamond CBD is already at a phase where all it has to do is launch a new product lineup. That happened in May when it launched new CBD-infused chocolate edible candies under the Choco Budz brand name.
The entry of Diamond CBD, as well as other cannabis companies, into the chocolate market, is not only strategic for the potential revenue that comes with it, but also because there has been an overarching shift in consumers’ taste when it comes to chocolate.
Consumers prefer healthy options over simply craving for chocolates.
According to a new report by the National Confectioners Association, consumers now focus more on their wellbeing. Furthermore, they are more conscious about their diet, quality sleep, and exercise. Nine in 10 consumers take it on their own to maintain a balanced lifestyle.
The sentiment is particularly strong among the millennials who make up the majority of consumers at present. The generation is also the most likely to reject GMO. They will always go for ingredients that are vegan, gluten-free, or raw.
The findings of the report could explain the expectations that dark chocolate is on track to dominate the market share. Cocoa is healthier than fats from palm and coconut oils.
The darker the chocolate, the richer it is in antioxidants, soluble fibers, minerals, and bioactive compounds. Eating dark chocolate helps protect the brain from stress and inflammation which could both trigger neurodegenerative disorders such as Alzheimer’s. Dark chocolate can also aid proper blood circulation to the brain. This is essential to maintain focus, improve memory, and subdue anxiety attacks.
Similarly, people use CBD used to calm anxiety and to improve the suffering from insomnia. There are also studies suggesting that it can relieve people from different types of chronic pain. Recently, the U.S. Food and Drug Administration approved the first-ever cannabis-derived medicine for the treatment of patients with Dravet syndrome.
CBD chocolates have no known-therapeutic benefits, but, like the dark chocolate, its potential to boost bodily functions that are essential in promoting health will be attractive to health-conscious consumers.
Cannabis companies taking a share of the chocolate Market
With its potential to address consumers’ evolving taste, CBD chocolate could open the next big opportunity for investors as well. CBD chocolate, with all its health-boosting benefits similar to the famous dark chocolate, has a strong position to nab at least a slice of the $161.56 billion chocolate market.
“…with the chocolate industry growing at the pace it is, the marriage of these two products makes perfect sense,” Kevin Hagen, CEO of PotNetwork Holdings, said.
Additionally, as mentioned above, the CBD chocolate category is currently sitting on top of the CBD market which investment bank Cowen & Co projects will hit $16 billion by 2025. The global legal marijuana market projects to be worth $146.4 billion by 2025.
(Featured Image by Hans)
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