Emulsion Innovations Stir Interest in Cannabis-Infused Options

By Rob Kuvinka, Data Science Manager, New Frontier Data

Myriad types of infused cannabis products are flooding the market: Food, dog treats, beverages, beauty products, and even bedding now feature cannabis in their marketing hooks. New Frontier Data estimates that in the United States, 2020 retail sales of such high-THC marijuana and low-THC/high-CBD formulations will represent a nearly $3 billion retail market.

Surveyed consumers report quality as a paramount concern when making purchasing decisions. Price, dosage, ingredients, and lab test results are other top factors considered. Conversely, oft-cited barriers to are adoption are inconsistent or slow-acting effects, and contamination concerns.

Accordingly, investors and manufacturer are vying for position toward market opportunities.

“Over the last several years, the data shows consistently strong sales for infused products across legal markets” notes John Kagia, Chief Knowledge Officer (CKO) of New Frontier Data. “At the same time, there is still room for growth. Manufacturers are developing products that are more easily absorbed by the body, have reduced onset times, and are accurately dosed. All innovations which strengthen the product categories’ competitive position.”

Water-based emulsion technology is one means being deployed to meet consumer needs. The process involves using an emulsifier (typically a liquid or powder agent) to combine immiscible liquids. In cannabis, extract oils need to be combined with water-based consumer products like lotions or beverages as a prerequisite for human absorption.

“Our product is designed to provide greater bioavailability, near-perfect dosing, and shelf-stability using safe ingredients.” says Diana Eberlein from SōRSE Technology, a developer a water-soluble emulsion technology geared at the cannabis industry. “The technology effectively makes cannabis oils water soluble for infusing beverages, food items, topicals, and nutraceuticals. Our partners see improved stability and homogeneity in their products, not to mention improved sensory for the consumer, which is a major focus of ours.”

Emulsified cannabis products are also lauded for improving flavor and food quality. As producers are increasingly making tasty chocolates, beverages, snacks, etc., the generally higher quality of food products is a positive externality for other potential infused products beyond cannabis.

Emulsion technology, as in other elements of the broader cannabis industry, is subject to evolving regulatory constraints. The FDA has been consistent on ensuring that the safety of ingredients in emulsions is understood. Companies who are taking it one step further and make what they claim to be nanoemulsions will need to prove their safety as nano-sized components, in addition to proving the safety of the ingredients in combination. That level of scrutiny may raise a potential red flag for manufacturers and processors.

More analysis about the market performance of infused products, and an examination of consumer bases, manufacturing processes, and how cannabis companies are shaping the future of infused products can be found in The Cannabis-Infused Products Report Series: U.S. Consumer Experience and Demand, from New Frontier Data, in partnership with SōRSE Technology.

Key insights for product developers and retailers provided in the report include:

• Among younger consumers, 42% expressed awareness about where infused products are available, compared to 38% of middle-aged and 17% of older consumers. Those rates reflect significantly limited sales, as 95% of both middle-aged and older consumers with such awareness reported their prior use.
• Quality is of paramount concern for consumers of cannabis-infused products who look to labeling to assuage concerns regarding ingredients, potency, and dosing amounts. Once satisfied with a product, consumers tend to remain very brand-loyal.
• As the cannabis industry matures, efficiencies and economies of scale will bring down the cost of infusion technology. But new technologies will bring new challenges. For example, the current design of hydrophobic liners on aluminum cans created a potency issue for emulsified cannabis beverages. Producers will have to remain cognizant of the challenges associated with integrating new technology and novel foods in an evolving market.