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Cannabis Packaging Market - Growth, Trends, COVID-19 Impact and Forecast (2023-2028)

2023-06-19
Market Overview
The compound annual growth rate of the global cannabis packaging market is expected to be 24.3% during the forecast period from 2021 to 2026. Due to the growing demand for medical and entertainment cannabis products, it is expected that the cannabis packaging market will experience significant growth for consumption in the coming years. The increasing legalization of cannabis in various countries may drive future markets.
The application of casual marijuana is expected to drive the market in the future, as it has shown unprecedented growth in recent years. The Cannabis Business Daily reported that flowers are the most popular form of marijuana sold in the United States. Flowers are packaged in cans or soft packaging bags.
The rapid legalization of cannabis consumption in the United States and the existing free environment in Canada are expected to drive auxiliary demand for cannabis packaging. 36 of the 50 states in the United States allow patients to use Medical cannabis under appropriate prescriptions. The growth of the cannabis market in North America indicates that the region is expected to witness rapid development in the studied market.
Due to various regulations implemented by different governments around the world, the packaging of cannabis is the most critical process. For example, Medical cannabis has many forms, such as flowers or concentrates, which are extracted in oils, extracts or edible products. This Medical cannabis packaging is growing, prompting companies to offer their manufacturers overall solutions.
A significant trend in the cannabis packaging industry is to utilize the increasing consumption of casual cannabis among young people. Due to the high brand saturation of marijuana players, packaging plays an important role in strengthening the brand image among small and emerging players.
The announcement of a nationwide blockade during the COVID-19 outbreak triggered an increase in demand for cannabis products. The widespread idea of hoarding cannabis products due to concerns about their scarcity has taken center stage, with multiple retail stores recording severe traffic from consumers. According to relevant statistical data, the retail sales of cannabis products increased rapidly in March 2020, which generated auxiliary demand for cannabis packaging products.
The focus on sustainability, regulations, and branding has greatly impacted the packaging of cannabis, promoting a shift from traditional methods that rely on manual processing and packaging to more complex methods involving automated machines. As industry participants realize the benefits of automated packaging processes, the integration of automation is gradually gaining attention in the cannabis packaging industry. With the standardization of the legal environment for marijuana, it is expected to become more popular.
Report scope

Due to various regulations implemented by governments around the world, the packaging of cannabis is the most critical process. This report provides a comprehensive analysis of the cannabis packaging market categorized by type, packaging material, and application. The types of hemp packaging market include hard packaging and soft packaging.

Main Market trend
Plastic packaging holds an important market share
Plastic packaging has always been the preferred packaging choice for different forms of cannabis consumption, such as tinctures, flowers, oils, patches, and pills. Plastic can address the different challenges faced by marijuana manufacturers.
Due to various reasons, plastic is the most common type of material used for hemp packaging, involving strict regulations on hemp packaging and product preservation. Firstly, cannabis is a perishable product, and plastic packaging greatly extends the shelf life of perishable products. Secondly, using sustainable materials to design anti child locking mechanisms poses great challenges. Every legitimate marijuana market requires some form of child protective packaging, whether it is primary product contact packaging or secondary packaging, such as out of pocket.
Inject cannabis extract and tincture using plastic in the form of containers, droppers, and bottle caps. When it comes to containers, the lightweight of plastic has always been the driving factor behind plastic containers. The containers used for packaging are very small and sold in sizes of 15 to 30 milliliters, so manufacturers are unable to add regulatory information to the labels. Manufacturers typically have a secondary packaging based on cardboard boxes, where the container is packaged together with a booklet containing the required information. Similarly, droppers and bottle caps are also made of plastic.
Bottles and caps made of high-density polyethylene (HDPE), low-density polyethylene (LDPE), polypropylene (PP), and polyethylene terephthalate (PET) have become widely accepted packaging choices in the cannabis industry. Plastic bottles and caps offer a wide range of products to choose from. In addition, some progressive plastic packaging manufacturers are actively working to provide alternatives to plastics made from fossil fuels, rather than using resins produced from Renewable resource such as sugarcane. Earth friendly options include using HDPE bio resins made from sustainable source resins from sugarcane.
In addition, flexible bags can meet the strict requirements for packaging cannabis. Chinese suppliers are able to dominate the flexible packaging market due to their low-cost products and the absence of major players. Like Amcor, players have abandoned the cannabis market due to its uneven legal environment.
Competitive landscape
The global cannabis packaging market is a highly integrated market, with few top players occupying a significant share of the market. Some of the main players in the market include KushCo Holdings Inc., JL Clarks Inc., Kaya Packaging, Impak Corporation, Funksac LLC, Dixie Elixirs&Edibles, Pollen Gear LLC, and others. Some recent developments in the market are:
September 2021- Green Rush Packaging announced the launch of Grip 'N Lock hemp boxes. These boxes come in default small and large sizes and offer customized options for customers. In addition, the Green Rush Packaging Grip 'N Lock hemp storage box has been certified under 16 CFR 1700. The glossy box finish also increases the waterproofing of the packaging and prevents the printing design of the box from fading.
April 2021- Canaline announced its new C-Class cans. These cans are shorter and wider than the company's previous models, making them easier to stack and store. These C-Class cans come in various basic sizes, ranging from 2 ounces to 5 ounces. Customers can purchase matte black, matte white, and transparent cans with a choice of matte or shiny black and matte or shiny white lids.

 
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