Cannabis Packaging Market Size

Cannabis Packaging Market Analysis

The Global Cannabis Packaging Market is expected to witness a CAGR of 24.3% over the next five years. The cannabis packaging market is anticipated to witness notable growth in the next few years, owing to the rising demand for medical and recreational cannabis products. The increasing legalization of cannabis in various countries will likely drive the future market.

• The recreational cannabis application is expected to drive the market in the future, as it has shown unprecedented growth in recent years. The Marijuana Business Daily reported flowers as the most preferred form of cannabis sold in the United States. The flower is packed in jars or flexible packaging bags.
• The rapid legalization of the consumption of cannabis in the United States and the existing free environment in Canada is anticipated to drive the ancillary demand for the packaging of cannabis. 36 out of 50 states in the United States allow patients to use medical cannabis with a proper prescription. The growth of the cannabis market in the North American region indicates that the area is expected to witness the rapid development of the studied market.
• A notable trend in the cannabis packaging industry is to tap into the rising consumption of recreational cannabis amongst the younger population. Due to high brand saturation amongst cannabis players, packaging plays an increased role amongst smaller and emerging players to strengthen the brand image.
• The cannabis packaging market growth is restrained due to challenges that many cannabis packaging businesses face in order to comply with child-resistant (CR) packaging regulations. According to the rules, cannabis product packaging must be strong enough that a child cannot open it on their own.
• The announcement of a nationwide lockdown during the COVID-19 outbreak sparked increased demand for cannabis products. Multiple retail stores registered havoc traffic from consumers as the general idea of stocking up on cannabis products in fear of scarcity took the center stage. Relevant statistics suggest the high retail sales growth of cannabis products in March last year, creating an ancillary demand for cannabis packaging products.
• The focus on sustainability, regulations, and branding has heavily impacted the packaging of cannabis and has facilitated the shift from traditional methods, which relied on manual labor for processing and packaging, to more sophisticated methodologies involving automated machines. The incorporation of automation is slowly gaining traction in the cannabis packaging industry as the industry players become aware of the benefits of automating packaging processes. This is envisaged to become more popular with the standardization of the legal landscape of cannabis.