Canning cannabis: Consumer preferences for CBD- and THC-infused beverages

Abstract

Cannabis regulatory reform has opened areas for product innovation and entrepreneurship. One dimension that has so far been understudied is the potential for cannabidiol (CBD) and tetrahydrocannabinol (THC) beverages. This study uses double-bounded contingent valuation techniques and parametric and nonparametric estimation procedures to assess consumer demand and willingness to pay (WTP) for various cannabis-infused beverages. By targeting a nationally representative sample of U.S. adults, the study finds that roughly half of consumers are willing to try cannabis-infused beverages. Among these respondents, cannabis-infused juices and sweetened iced tea elicit the highest mean WTP, though the WTP for other beverage options varies across demographics and consumer preferences. On average, the mean WTP for THC-infused beverages is 12.5% higher per 12 oz can than its CBD-infused counterpart, and younger consumers are willing to pay more for each of these products. These results have important implications for entrepreneurial decision-making, product development, and marketing strategies.