Jul 11, 2019

Legal marijuana looks to be boosting snack sales

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Reproduced from Nielsen; Chart: Axios Visuals

Despite still being illegal at the federal level, marijuana is now legal for recreational use in 11 states and Washington D.C., and it's having an impact on a number of other businesses.

Why it matters: New data from market research firm Nielsen shows states that have legalized have also seen a notable pick-up in the consumption of what Nielsen calls "munchies," creating "big opportunities for the American food and beverage market—particularly for the snack and confectionery category."

What they're saying: "Within the U.S., Nielsen data shows that sales of both salty and sweet snacks have increased over the past 52 weeks (ending April 27, 2019) with salty snacks reaching sales of $29.9 billion and sweet snacks hitting sales of $6.5 billion."

  • Further, Nielsen notes, "Edible hemp-based cannabidiol (CBD) products, which include the cannabinoid compound found in marijuana with little to no THC, present a $6 billion opportunity for the food and beverage industry."
  • The compound annual growth rate — a number representing the rate at which an investment would have grown if it grew the same rate every year and profits were reinvested each year — has grown demonstrably faster in legal recreational marijuana states than it has in those where it is still illegal.

Go deeper

New York decriminalizes marijuana use

Andrew Cuomo delivers a speech earlier this month. Photo: Scott Heins/Getty Images

New York Governor Andrew Cuomo signed a bill Monday to decriminalize marijuana use in the state. Under the law, use could still result in a fine, but will not be considered a criminal offense that could result in prison time.

The big picture: New York joins 15 other states that have decriminalized. 11 states plus Washington D.C. have legalized marijuana.

Go Deeper: Deep Dive: The burgeoning marijuana industry

Keep ReadingArrowJul 29, 2019

Kamala Harris introduces bill to decriminalize marijuana

Democratic presidential candidate Sen. Kamala Harris. Photo: Ethan Miller/Getty Images

Democratic presidential candidate Sen. Kamala Harris introduced a bill with House Judiciary Chairman Jerry Nadler on Tuesday to decriminalize marijuana at a federal level and expunge low-level marijuana possession convictions.

"Times have changed — marijuana should not be a crime. We need to start regulating marijuana, and expunge marijuana convictions from the records of millions of Americans so they can get on with their lives."
— Sen. Kamala Harris statement
Go deeperArrowJul 24, 2019

Mainstream retail's move into CBD could create $24 billion industry

Data: Brightfield Group; Chart: Axios Visuals

Thanks to passage of the most recent U.S. farm bill legalizing hemp, cannabidiol — or CBD — is being sold widely throughout the country.

Why it matters: Mainstream acceptance is expected to bring explosive growth, with analysts from Brightfield Group estimating the U.S. CBD market will grow 706% from its 2018 levels by the end of the year, and reach nearly $24 billion by 2023.

Go deeperArrowJul 12, 2019