Winter Is Peak Season for Cannabis-Infused Chocolates as Sales Surge, Despite Market Challenges and Competition from Gummies
As temperatures drop and winter sets in, marijuana-infused chocolate sales heat up, making the colder months a peak season for cannabis confectioners. According to edibles manufacturers and data from Seattle-based cannabis analytics firm Headset, the strongest months for cannabis chocolate sales are January and February.
Multistate Operator Grön Expands Nationwide as It Plans to Enter Three New Markets in 2025 to Meet Growing Demand for Cannabis Chocolates
Grön, which currently operates in six states and Canada, is experiencing steady growth and plans to expand into three more states by 2025. The company’s success in the edibles sector, particularly with gummies, has fueled its expansion, yet Apple remains passionate about infused chocolate.
Despite Growing Sales, Marijuana-Infused Chocolate Continues to Lose Market Share to Gummies, a Trend That Concerns Edibles Producers
Even as Grön and other manufacturers see demand for cannabis-infused chocolate rise during winter, the product category has been losing market share to gummies. Apple expressed her disappointment over this trend, noting that about 70% of Grön’s sales now come from gummies, while chocolates account for just over 20%.
“It breaks my heart that it’s not more,” she said, emphasizing that cannabis chocolate remains “underrated” and often does not receive the attention it deserves in the marketplace.
Marijuana-Infused Chocolate Accounts for 9.4% of U.S. Edibles Sales and 14.2% in Canada, Lagging Behind Gummies, Which Dominate Over 75% of the Market
Despite its niche appeal, cannabis chocolate is a significant player in the edibles market. In the U.S., infused chocolate products account for 9.4% of total edibles sales in markets tracked by Headset. In Canada, chocolates have a slightly larger market share, making up 14.2% of all edibles sales.
Among Canadian brands, Tilray Brands-owned Chowie Wowie has emerged as the No. 1 cannabis chocolate product, with sales up 35% year-over-year, according to Headset data.
Tilray Canada’s President Believes That Cannabis-Infused Chocolate Is on the Verge of a Major Comeback as Non-Infused Chocolate Sales Skyrocket
Blair MacNeil, president of Tilray Canada, believes the cannabis chocolate category is poised for a resurgence, citing broader market trends.
“Non-infused chocolate in the marketplace is growing at five times the rate of infused chocolate,” MacNeil told MJBizDaily. “That would tell me there’s a built-up demand … that I think will make its way into the THC-infused side.”
The Global Non-Infused Chocolate Market Is Expected to Grow by 4%-5% Annually Until 2030, Generating Over $120 Billion in Revenue Per Year
MacNeil’s prediction is backed by market research from Germany-based Stastia and San Francisco-based Grand View Research. Their findings suggest that the non-infused chocolate market will grow by 4%-5% annually through 2030, already generating more than $120 billion per year. If consumer interest in chocolate continues to rise, the infused chocolate sector may see a similar uptick.
Tilray Canada Expands Infused Chocolate Production Capacity to Meet Rising Consumer Demand for High-Quality Cannabis Confections
Anticipating an increase in demand, Tilray Canada is ramping up its chocolate production. The company has leveraged the expertise of its sister brand, Manitoba Harvest, which specializes in food science, to optimize chocolate manufacturing processes.
“We’ve been leveraging some of their food scientists to help us … on both gummies and on chocolate,” MacNeil explained.
Manufacturing Cannabis-Infused Chocolates and Gummies in the Same Facility Poses Unique Challenges Due to Differences in Production Requirements
Producing cannabis-infused chocolates and gummies in the same facility is no easy task. Apple highlighted the challenges of running a confectionary kitchen that handles both products, noting that the processes are fundamentally different.
“Boiling the mixture for gummies creates steam, and chocolate is hydrophobic, meaning it hates water,” she explained. Because of this, manufacturers often have to alternate between making gummies and chocolates, as high humidity levels can negatively affect chocolate’s texture and stability.
Storage and Transportation Play a Key Role in Maintaining the Quality and Shelf Stability of Cannabis Chocolates
Maintaining proper storage conditions is critical for preserving the integrity of cannabis chocolates. Apple explained that Grön’s production facilities keep chocolate storage rooms below 71°F with humidity levels under 50%. During transportation, delivery vans are kept at around 65°F to ensure that chocolates remain in optimal condition.
Retailers are also advised against refrigerating cannabis chocolates, as sudden temperature changes can cause a white film to form on the surface, a process known as chocolate bloom. Despite this cosmetic change, Apple assured that bloomed chocolate remains shelf-stable and safe to consume.
Global Cocoa Shortages and Rising Prices Could Impact the Cost of Cannabis Chocolates, but Long-Term Supplier Agreements Help Mitigate Risks
Another challenge for the cannabis chocolate industry is the rising cost of cacao. The International Cocoa Organization reports that global cocoa stockpiles are down 36% year-over-year, and futures prices for March delivery have quadrupled compared to five years ago.
The primary cause is a blight affecting cacao plants in the narrow equatorial regions where they are grown. While some companies, like Tilray, have managed to avoid price increases due to long-term supply contracts, others, such as Grön, have had to absorb rising costs.
Kiva Confections and Grön Use Strategic Supply Chain Planning to Mitigate the Impact of Rising Ingredient Costs and Seasonal Demand Fluctuations
Jordan Shimada, director of supply chain and procurement for Kiva Confections, said the company works closely with suppliers to forecast ingredient needs and lock in pricing.
Founders Kristi and Scott Palmer, who started Kiva in their kitchen, continue to nurture supplier relationships to help the company plan for seasonal fluctuations in demand, particularly around Christmas and Valentine’s Day.
“People are purchasing a lot more this time of year,” Shimada noted, highlighting the importance of proper supply chain planning.
New York and New Jersey Emerging as Key Markets for Cannabis-Infused Chocolate as Consumer Demand Outpaces Supply
New York and New Jersey have become hotbeds for cannabis chocolate sales. Both Kiva and Grön have reported strong demand in these markets, with Apple stating, “We can’t keep chocolates in stock.”
Grön’s Expansion Strategy Relies on ‘Reverse Licensing’ Deals to Enter New States While Maintaining Brand Consistency
As part of its expansion strategy, Grön partners with existing cannabis license holders in new states, offering what Apple calls a “reverse licensing” deal. Under this model, Grön provides its own manufacturing equipment, staff, and distribution network while operating under the license holder’s permit.
To ensure brand consistency across multiple locations, Grön’s corporate team frequently visits its partner facilities and supplies standardized ingredients to maintain quality.
Canada’s Strict THC Limits on Edibles Could Slow Cannabis Chocolate Growth, but May Also Reduce Tax Burdens for Producers
Unlike many U.S. markets, where cannabis edibles can contain up to 100 milligrams of THC per package, Canadian regulations limit edibles to just 10 milligrams of THC per package.
MacNeil of Tilray Canada pointed out that while the potency cap may limit growth, it also helps reduce tax burdens, as higher-taxed cannabis formats such as flower and vapes bear a heavier excise tax burden than edibles and beverages.
With Demand Rising and New Markets Opening, Cannabis-Infused Chocolate May Soon Reclaim Market Share from Gummies
Despite competition from gummies, infused chocolates continue to carve out a loyal consumer base. With increasing investments in production capacity, strategic market expansion, and evolving consumer preferences, marijuana-infused chocolate may be on the verge of a resurgence in the edibles market.
OG source