That’s how American Bakers Association began its latest Bake to the Future podcast — this one focused on the emerging topic of cannabis and baked goods.
Once puns were out of the way, the broadcast shed light on this quickly changing and complex subject — tapping into the expertise of speakers on angles ranging from consumer trends to the confusing regulatory landscape.
“A lot of people are hailing cannabis as the new 'it' ingredient in the food industry in general,” said Doug Peckenpaugh, chief editor of Snack Food & Wholesale Bakery and Cannabis Products magazine.
“Edibles have gained popularity during COVID,” said Rebecca Maestas, Brand Development Manager at LivWell Enlightened Health. “We've seen a spike in the consumption of edibles and other infused products.”
The podcast also featured input from Rasma Zvaners, ABA’s Vice President of Regulatory and Technical Services. The discussion was moderated by Katie Juhl, ABA’s Director of Marketing and Communications, and Hailey Blumenreich, Marketing and Communications Manager.
Cannabis is a Complex Topic
Cannabis is an emerging category like no other. Some point to its potential in industries such as baking, but opportunities hinge on the loosening of regulatory restrictions.
Here are factoids about cannabis-based partly on information from the National Institutes of Health:
The Plant: The word “cannabis” refers to all products derived from the plant Cannabis sativa.
THC: Marijuana refers to parts of — or products from — the plant that contain substantial amounts of THC, often associated with psychoactive effects.
CBD: Another substance in the plant is CBD, often linked to therapeutic applications, such as relaxation or pain reduction.
Regulatory: Some 15 states permit recreational use of cannabis. However, according to FDA regulations, CBD cannot be used or sold as a food ingredient or dietary supplement, said Zvaners. The topic has spawned a great deal of confusion, partly because rules and enforcement by government entities at different levels have been inconsistent, according to podcast speakers.
Strong Momentum for Products
Peckenpaugh said the outlook is strong for cannabis and edibles in the U.S.
He cited data from market analytics firm BDSA that predicts the U.S. cannabis market will hit $50 billion by 2025. The edibles segment of the market currently represents about 15% of total dollar sales, and is expected to grow in its appeal, he said.
Cannabis and the Baking Sector
On the edibles front, Maestas said the focus to date has been on sweet product varieties.
“We're talking chocolates, cookies, brownies, gummies, hard candies — things of that nature,” she said. “A lot of these sweeter options in my mind are more occasional. So these products are being purchased, I think, when people are celebrating a special occasion.”
Tracking Regulatory Developments
ABA’s Zvaners described the regulatory landscape as a “quagmire” with “a lot of moving parts.”
The food and beverage discussions to date have focused primarily on CBD — as THC would be looked at on the drug side.
On the federal level, the FDA is exploring future pathways to move forward with CBD as it studies safety involving “cumulative impacts on individuals,” Zvaners said. FDA is more likely to move quicker to enable CBD in dietary supplements rather than food, she added.
ABA Taking Flexible Approach
ABA at this point is tracking the issue and prepared to become more involved as the need progresses.
“I anticipate that if there's more regulatory clarity that comes around, that we will certainly engage at a different level,” Zvaners said. “I think it's just a matter of time before ABA takes the dive and engages in some of these sectors a little more actively, based on our members’ needs.”
Looking to the Future
As an emerging market, cannabis is filled with both uncertainty and potential, all of which adds up to the excitement, Peckenpaugh said.
“It’s going to be a really fun market to watch over the next few years, as we see its exponential growth as more markets open up,” he said.