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The cannabis packaging market was valued at USD 101.48 billion in 2019?and is expected to reach USD 297.51 billion by 2025, at a CAGR of 22.59% over the forecast period 2020?- 2025. Green packaging is a significant trend that is the push for weed products to be packaged in materials that are recyclable, biodegradable, and compostable. As more states are legalizing medical cannabis, the cannabis industry across the globe has grown more than 310% in the past 4-5 years. Therefore, it is necessary to have suitable packaging for the cannabis product.
- The packaging of cannabis is the most crucial process owing to various regulations imposed by the governments of different countries across the globe. According to these strict regulations, the packaging of cannabis products should have a single and uniform color, with a standardized font style.
- The packaging is essential for various forms like the Jar protects the integrity of the flower whereas the airtight containers allow the curing process of cannabis to develop over time.
- The increasing use of cannabis by the medical industry for treating various chronic conditions, such as epilepsy, Alzheimer’s, etc., is estimated to boost the cannabis packaging market in the future. Cannabis is used to reduce vomiting and nausea during chemotherapy, improve appetite for the patients of HIV/AIDSs, and lower chronic pain and muscle spasms.
- The cannabis packaging market is expected to register notable growth in the next few years, owing to the rising demand for medical and recreational cannabis products. Moreover, the legalization of cannabis in various countries of North America is another major factor driving the global cannabis packaging market. However, the stringent regulation related to cannabis packaging may hamper the market growth of cannabis packaging in the future globally.
Scope of the Report
The cannabis packaging market is classified based on type, packaging materials, and application. The type segment of the cannabis packaging market includes rigid packaging and flexible packaging. The rigid packaging segment is expected to contribute significantly to the cannabis packaging in the future, owing to the extensive use of vials and bottles for medical cannabis packaging. The packaging materials consist of Glass, Metal, Plastic, and other materials. Based on application, the cannabis packaging includes medical, recreational, and others. The pharmaceutical segment is anticipated to grow substantially over the forecast period, owing to the rising cannabis demand for medicinal purposes in government authorized medical centers in countries where cannabis is legalized.
Key Market Trends
Recreational Segment to Grow at Faster Rate During the Forecast Period
- The recreational segment, by application, is projected to be the fastest-growing segment in the market. Despite recreational cannabis having an extremely low presence, its consumption and demand remain almost equivalent to that of medicinal cannabis, and hence, with further legalization, the demand for recreational cannabis could look at surpassing the demand for medical cannabis.
- Uruguay and Canada are the only countries in North and South America that have legalized the use of recreational cannabis. The market is projected to remain concentrated in the United States and Canada.
- According to an online publication Marijuana Moment, on October 7th, 2019, the Senate leader of Mexico’s ruling party said that the lawmakers will vote on a bill to legalize marijuana for adult use by the end of the month. In doing so, it would become only the third country globally to have waved the green flag on adult-use weed, after Uruguay and Canada.
- In United States, the number of people consuming cannabis is increasing over the year due to cannabis are being legalized in the region for its medicinal and recreational uses that boost consumption.
North America is projected to account for the largest market share during the forecast period.
- The North American market for cannabis is estimated to account for the largest market share. The market in this region is primarily driven by growth in the United States and Canadian markets.
- The cannabis market in this region is also driven by the increasing legalization of cannabis for both medical and recreational purposes all over North America and the increasing awareness among consumers regarding the health benefits of cannabis.
- The cannabis market is further fueled by the presence of major cannabis giants such as Canopy Growth Corporation, Aurora Cannabis Inc., and Medical Marijuana Inc. who are continuously investing and collaborating for the development of new products to fulfill the consumer demand.
- The rapid popularity of alternative ingestion techniques, such as weed-laced topical sprays and edible food items, are also propelling the cannabis market in North America, thereby, boosting the cannabis packaging market.
- Moreover, various medical organizations, such as the American Public Health Association, American Nurses Association, National Multiple Sclerosis Society, American Medical Student Association, Epilepsy Foundation, and Leukemia and Lymphoma Society, have permitted access of medical cannabis to patients with chronic conditions. Therefore, this is likely to further enhance the regional demand for cannabis packaging in the upcoming years.
The cannabis packaging market is a highly consolidated market with few top players dominating the major share of the market. Some of the dominant players in the market are KushCo Holdings Inc., JL Clarks Inc., Kaya Packaging, Impak Corporation, Funksac LLC., Dixie Elixirs & Edibles, Pollen Gear LLC., among others.
- June 2019 - KushCo Holdings, Inc. has partnered with C.A.Fortune, a leading full-service national consumer product sales and marketing agency focused on lifestyle brand partnerships, to provide viable CBD companies access to large scale, conventional retail channels. The groundbreaking partnership will be the first large scale go-to-market operation focused on helping compliant CBD brands achieve mass distribution across legal markets in the United States.
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