Cannabis Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.72 Billion |
| Market Size (2029) | USD 3.53 Billion |
| CAGR (2024 - 2029) | 15.46 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Cannabis Packaging Market Analysis
The Cannabis Packaging Market size is estimated at USD 1.72 billion in 2024, and is expected to reach USD 3.53 billion by 2029, growing at a CAGR of 15.46% during the forecast period (2024-2029).
- The cannabis packaging market is expected to grow due to increasing demand for both recreational and medical cannabis products. This growth is driven by expanding legalization, growing consumer acceptance, and developing new cannabis-based products. Regulatory requirements for safe and compliant packaging also influence the market.
- Packaging manufacturers respond to these demands as the industry evolves by developing innovative solutions that address consumer needs and regulatory compliance. The increasing sophistication of cannabis products, from edibles to concentrates, is also driving the need for specialized packaging solutions that can preserve product quality and extend shelf life.
- Legalizing cannabis in several North American countries is an essential factor driving the demand for packaging solutions. As more regions adopt policies to permit the use of cannabis for medical or recreational purposes, the industry faces new requirements for safe, compliant, and attractive packaging.
- This shift has increased demand for specialized packaging that meets regulatory standards, ensures product freshness, and appeals to consumers. Packaging manufacturers are responding by developing innovative solutions that address child resistance, tamper-evidence, and moisture control while considering sustainability and brand differentiation. The evolving legal landscape continues to shape packaging needs in the cannabis market, creating opportunities for growth and innovation in the packaging industry.
- Cannabis products are gaining popularity due to their medical and recreational benefits, including the treatment of chronic pain, anxiety, and sleep disorders. US policies regarding medical and nonmedical cannabis use are evolving rapidly. Currently, 34 US states have legalized cannabis for adult medical use, with 15 of these states also permitting adult nonmedical use.
- The growing adoption of cannabis products for medical purposes is expected to drive demand. For example, in April 2023, Aurora Cannabis Inc., a Canadian company, and MedReleaf Australia launched IndiMed Tempo 26, a new range of higher THC dried cannabis products for qualified patients under the MedReleaf Concession Scheme (MCS). The introduction of Tempo 26 expands the available product portfolio, providing doctors with a broader range of options for medical cannabis patients.
- Cannabis for recreational use has been legalized in 23 states, three US territories, and Washington, DC. An additional eight states have decriminalized its use. Commercial distribution is legal in all jurisdictions where possession has been legalized, except for Virginia and Washington, DC. Most of these areas permit personal cultivation for recreational use, with exceptions in Delaware, Illinois, New Jersey, and Washington State. The cannabis packaging industry has observed a trend of targeting the younger demographic's increasing recreational cannabis use. As the cannabis market becomes saturated with brands, packaging has gained importance for new entrants seeking to enhance their brand reputation. Additionally, a 2023 survey of 9,000 Australians revealed that 98% support cannabis legalization, according to the Alcohol and Drug Foundation.
- The demand for environmentally friendly and recyclable packaging is compelling manufacturers to adopt more sustainable materials and processes. This shift is driven by increasing consumer awareness and regulatory pressures to reduce environmental impact. Packaging companies are investing in research and development to create innovative solutions that meet both sustainability goals and market requirements.
- In July 2023, Hudson-Sharp installed a new Ares 400 stand-up pouch machine at NBi FlexPack in Mukwonago, Wisconsin. This installation exemplifies the industry's move toward more efficient and eco-friendly production methods. NBi FlexPack, which specializes in packaging for the cannabis market, focuses on producing recyclable and compostable packages that maintain visual appeal.
- This approach addresses the dual challenges of sustainability and marketability in the competitive cannabis industry. The new machine features a compact design, quick changeover capabilities, and compatibility with recycle-ready materials. These attributes are crucial in modern packaging production, allowing for flexibility in manufacturing while minimizing environmental impact. This installation aims to increase production output and reduce waste for the packaging manufacturer, demonstrating how technological advancements can align with sustainability goals in the packaging industry.
- Strict regulations governing cannabis products impact the packaging market. These regulations, which vary by jurisdiction, often impose specific requirements on packaging design, labeling, and materials used. Such stringent rules can limit innovation and increase costs for packaging manufacturers and cannabis producers, potentially constraining market growth. For instance, many regions require child-resistant packaging, tamper-evident seals, and specific warning labels.
- Additionally, some jurisdictions mandate opaque containers to prevent product visibility, while others have restrictions on branding and imagery. These requirements often necessitate specialized packaging solutions, which can be more expensive to produce and may limit the use of eco-friendly materials. Furthermore, the rapidly evolving nature of cannabis regulations means that packaging manufacturers must remain agile, frequently updating their designs to comply with new laws. This regulatory landscape creates a complex operating environment for businesses in the cannabis packaging sector, influencing product development, marketing strategies, and overall market dynamics.
Cannabis Packaging Market Trends
Plastic Packaging Holds a Significant Market Share
- Various cannabis consumption methods, including tinctures, flowers, oils, patches, and pills, are commonly packaged in plastic. Plastic is the most frequently used material for cannabis packaging due to several factors, including strict legal requirements and product preservation needs. The rigorous regulatory environment for cannabis packaging necessitates materials that can meet safety and compliance standards, which plastic often satisfies.
- Additionally, plastic packaging offers excellent barrier properties, protecting cannabis products from moisture, light, and air, thus maintaining their quality and potency. Plastic's versatility allows for diverse packaging designs, accommodating different product forms and sizes. It also provides tamper-evident and child-resistant features, which are crucial in the cannabis industry.
- Plastic packaging helps cannabis manufacturers address various industry challenges, such as maintaining product freshness, ensuring compliance with regulations, and providing convenient and safe consumer packaging solutions. These factors have collectively driven the demand for plastic packaging in cannabis products, making it an integral part of the industry's packaging strategy.
- The cannabis market widely utilizes bottles and closures made from high-density polyethylene (HDPE), low-density polyethylene (LDPE), polypropylene (PP), and polyethylene terephthalate (PET). These materials offer flexibility, durability, and moisture resistance, making them suitable for storing and preserving cannabis products. Companies are introducing innovative plastic packaging solutions for cannabis products, driven by the benefits of plastic packaging and increasing sustainability concerns.
- These innovations include child-resistant designs, airtight seals to maintain product freshness, and recyclable or biodegradable options to address environmental considerations. As the cannabis industry continues to grow and evolve, packaging manufacturers focus on developing solutions that meet regulatory requirements, ensure product safety, and align with consumer preferences for eco-friendly packaging.
- Total consumption of adult-use cannabis in the United States reached 16.7 million kg in 2022. Consumption volume is expected to increase to over 3 million kg by 2025. This growing consumption is also one of the primary factors driving the growth of cannabis packaging and the need for plastic-based containers to store cannabis products. As the cannabis industry expands, packaging requirements have become increasingly important to ensure product safety, freshness, and compliance with regulations.
- Plastic-based packaging solutions offer several advantages, including durability, moisture resistance, and child-resistant features, which are crucial for meeting legal requirements in many jurisdictions. Additionally, plastic packaging's versatility allows for various designs and sizes to accommodate different cannabis products, from dried flowers to edibles and concentrates. The increasing demand for cannabis products has led to a parallel growth in the packaging industry, with manufacturers developing innovative solutions to meet the specific needs of cannabis producers and retailers while adhering to strict regulatory standards.
North America Holds Significant Market Share
- North America is a significant contributor to the global cannabis market. The region's growth is driven by the widespread adoption and cultivation of cannabis in countries like the United States and Canada. This expansion is mainly due to changing regulations and increasing acceptance of both medical and recreational cannabis use.
- Several US states have legalized cannabis for various purposes, while Canada has implemented nationwide legalization. These policy changes have spurred investment in cannabis production, processing, and distribution infrastructure across the region. Additionally, North American companies are at the forefront of cannabis research and product development, further solidifying the region's position in the global market.
- In December 2023, Canada exported approximately 9,300 kg of dried medical cannabis to other countries. This volume marked a substantial increase compared to the previous two months and represented one of the higher export quantities within the given time frame. The growth in cannabis exports from Canada indicates a rising demand for medical cannabis products in international markets. This trend could be attributed to factors such as increasing acceptance of medical cannabis treatments, evolving regulatory frameworks in importing countries, and Canada's reputation as a reliable supplier of high-quality cannabis products.
- As the export market expands, it creates a ripple effect across the supply chain. The expanding cannabis export market in Canada presents potential opportunities for packaging manufacturers in the region. These manufacturers may need to develop innovative, compliant packaging solutions that meet international shipping standards and preserve the quality of the cannabis products during transit. Additionally, this growth could lead to increased demand for specialized packaging materials, tamper-evident seals, and child-resistant containers, further stimulating the packaging industry in Canada.
- Further, recent regulatory changes have led to increased use of medicinal cannabis for various health conditions, including chronic pain, depression, PTSD, social anxiety, cancer, multiple sclerosis, and epilepsy. These conditions are often associated with modern lifestyle factors. The stricter regulations require suppliers to implement rigorous safety control measures and provide high-quality products to consumers, contributing to regional market growth.
- Companies in the region continue to innovate packaging formats and materials. For example, in January 2024, NBi FlexPack, a subsidiary of NBi Technologies, launched as a flexible packaging manufacturer. The company produces custom solutions for the legal cannabis market. NBi products are manufactured in the USA, enabling quick shipping turnaround times nationwide.
- Sustainability-focused companies continue to innovate eco-friendly packaging in the region. In June 2024, Grove Bags, a leading provider of USA-made cannabis packaging powered by TerpLoc Technology, launched ExIce. This eco-friendly storage solution addresses the unique challenges of preserving fresh frozen cannabis. ExIce fully dissolves in water without leaving residual microplastics, making it biodegradable, compostable, and marine safe—an industry-first that maintains quality while being environmentally friendly. The packaging is UV-resistant, antimicrobial, anti-static, and durable, even in sub-zero temperatures. ExIce is engineered to prevent condensation build-up and freezer burn, maintaining the integrity of fresh frozen cannabis by inhibiting ice crystal formation.
Cannabis Packaging Industry Overview
The cannabis packaging market remains fragmented due to numerous international, regional, and local players, such as Diamond Packaging, N2 Packaging Systems LLC, and BrandMyDispoand. Sustainable competitive advantages via innovation, market penetration levels, and the advertising expense power of competitive strategy are the main elements influencing the market.
Cannabis Packaging Market Leaders
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KushCo (Greenlane Holdings, Inc.)
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The BoxMaker, Inc.
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Diamond Packaging
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N2 Packaging Systems LLC
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BrandMyDispo
*Disclaimer: Major Players sorted in no particular order
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Cannabis Packaging Market News
- June 2024: Contempo Specialty Packaging, a forward-thinking custom packaging firm, unveiled a groundbreaking sustainable solution for the cannabis sector: the compostable flower pod packaging system. This trailblazing system features two key components: a fully metal, highly recyclable, resealable, and child-resistant tin and a single-use, child-resistant sealed pod crafted from a DIN CERTCO- and BPI-certified biobased resin. This resin is home and industrially compostable, ensuring a snug fit within the tin.
- February 2024: Sana Packaging, a leader in sustainable cannabis packaging, unveiled its latest innovation: a pre-roll multipack. This launch coincides with a significant achievement for the company: the reclamation of 750,000 pounds of plastic destined for the ocean. The new pre-roll multipack features a child-resistant clamshell closure, accommodates five 85 mm (0.5 g to 1 g) pre-rolls, offers generous space for branding and labeling, and is crafted from reclaimed ocean-bound plastic.
Cannabis Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for Medical and Recreational Cannabis Products
5.1.2 Legalization of Cannabis in Various North American Countries
5.2 Market Restraints
5.2.1 Stringent Regulation Related to Cannabis Packaging
6. CANNABIS APPLICATIONS (QUALITATIVE ANALYSIS)
6.1 Medical
6.2 Recreational
7. MARKET SEGMENTATION
7.1 By Type
7.1.1 Rigid Packaging
7.1.2 Flexible Packaging
7.2 By Packaging Material
7.2.1 Glass
7.2.2 Metal
7.2.3 Plastics
7.2.4 Other Packaging Materials
7.3 By Geography
7.3.1 North America
7.3.2 Europe
7.3.3 Latin America
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 KushCo (Greenlane Holdings, Inc.)
8.1.2 JL Clarks(CLARCOR Inc.)
8.1.3 The BoxMaker Inc.
8.1.4 Cannaline Cannabis Packaging Solutions
8.1.5 Dymapak/Quark Distribution Inc.
8.1.6 Diamond Packaging
8.1.7 N2 Packaging Systems LLC
8.1.8 Green Rush Packaging
8.1.9 Elevate Packaging Inc.
8.1.10 BrandMyDispo
8.1.11 THC Label Solutions
8.1.12 Automating Cannabis Packaging Equipment
- *List Not Exhaustive
9. FUTURE OF THE MARKET
Cannabis Packaging Industry Segmentation
Cannabis packaging refers to the materials and containers used to store, protect, and display cannabis products. These packaging solutions are designed to maintain product freshness, ensure safety, comply with regulations, and provide information to consumers. Cannabis packaging typically includes child-resistant features, tamper-evident seals, and labeling that adheres to local and federal guidelines.
The cannabis packaging market is segmented by type (rigid packaging and flexible packaging), packaging material (glass, metal, plastic, and other packaging materials), and geography (North America, Europe, Latin America, and Rest of the World). The report offers market forecasts and size in value (USD) for all the above segments.
| By Type | |
| Rigid Packaging | |
| Flexible Packaging |
| By Packaging Material | |
| Glass | |
| Metal | |
| Plastics | |
| Other Packaging Materials |
| By Geography | |
| North America | |
| Europe | |
| Latin America |
Cannabis Packaging Market Research Faqs
How big is the Cannabis Packaging Market?
The Cannabis Packaging Market size is expected to reach USD 1.72 billion in 2024 and grow at a CAGR of 15.46% to reach USD 3.53 billion by 2029.
What is the current Cannabis Packaging Market size?
In 2024, the Cannabis Packaging Market size is expected to reach USD 1.72 billion.
Who are the key players in Cannabis Packaging Market?
KushCo (Greenlane Holdings, Inc.), The BoxMaker, Inc., Diamond Packaging, N2 Packaging Systems LLC and BrandMyDispo are the major companies operating in the Cannabis Packaging Market.
Which is the fastest growing region in Cannabis Packaging Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cannabis Packaging Market?
In 2024, the North America accounts for the largest market share in Cannabis Packaging Market.
What years does this Cannabis Packaging Market cover, and what was the market size in 2023?
In 2023, the Cannabis Packaging Market size was estimated at USD 1.45 billion. The report covers the Cannabis Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cannabis Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Cannabis Packaging Industry Report
The report on Global Cannabis/Marijuana Packaging Companies provides a comprehensive industry overview, covering various segments by type, packaging materials, and geography. This industry report highlights the market size and market share, providing valuable insights into the market trends and market growth. The market analysis includes a detailed industry outlook and market forecast, offering a thorough understanding of the market dynamics.
The report also includes an industry analysis, focusing on the market leaders and their strategies. The market report is a valuable resource for market research and market trends, providing a detailed review of the market segmentation and market value. The industry information and industry statistics provided in the report help in understanding the industry's current state and future prospects.
The market data and market predictions are based on extensive industry research, making this report a reliable source of market insights. The industry reports and industry size details included in the report help in understanding the market's potential. The market forecast and market growth rate are essential for making informed business decisions.
The report example and report pdf are available for further reference, providing additional industry insights. Research companies can benefit from the detailed market review and market outlook provided in the report. The industry trends and industry sales data included in the report are crucial for understanding the market dynamics and making strategic decisions.
