Market Trends of Cannabis Packaging Industry
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.
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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.
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