$23.83 Billion Cannabis Packaging Market
$23.83 Billion Cannabis Packaging MarketÂ
The global cannabis packaging market will reach USD 23.83 Billion and grow at a rate of 25.2% annually by 2030.
The market’s growth is driven by the growing demand for child and tamper-resistant packaging, the legalization of marijuana in several countries, and the development of the medical cannabis industry.
The packaging of cannabis products includes all types of containers: bags, bottles, cans, cartons, etc. In addition to other containers that are used for transporting, storing, and marketing cannabis products. The packaging used for a product will depend on its form and intended end use.
Pre-rolled joints, for example, are usually sold in small tubes and papers, while dried cannabis flowers can be purchased in brown glass jars. To increase product visibility and shelf-life, stand-up bags and pouches are also being introduced to the market.
One of the main factors behind the market’s growth is the legalization of cannabis in many countries for recreational and medicinal purposes. According to the U.S. National Conference of State Legislatures (September 2018), recreational cannabis use was legalized in nine states and Washington D.C., while medical use is allowed in 30 states.
The Importance of Packaging
Moreover, Statistics Canada reports that in the third quarter of 2019, sales of legal cannabis totaled CAD 562 million. This is an increase of CAD 129 million over the second quarter. Additionally, the market is fueled by the growing demand for child-resistant, tamper-evident packaging.
Packaging helps preserve the integrity of the product and provides valuable information about the product for user safety and dosage. Furthermore, the packaging of cannabis is highly regulated in legal markets.
While regulations vary from country to country, most require clear labeling that includes the strain name, CBD and THC content, producer or cultivator, expiration date, clear labeling, and more.
$23.83 Billion Cannabis Packaging Market: Key Highlights
Below are some of the key highlights from the report.
- The largest revenue share in the global cannabis packaging industry between 2021 and 2030 is expected to be the flexible segment. This is due to the easy and safe handling and offering a better barrier to light oxygen, moisture, and other environmental factors than glass and metal. Furthermore, manufacturers are developing innovative packaging alternatives using sustainable and eco-friendly materials, such as plant-based polymers. Â
- Additionally, the revenue from the recreational sector is expected to increase steadily due to widespread legalization. This presents a different market for packaging that can be made sustainably and for aesthetics and branding.Â
- Due to legalization in different countries, North America’s cannabis packaging market is expected to account for the most significant global market revenue share between 2021-2030.
- According to the National Conference of State Legislatures(NCSL), 35 states and Washington D.C. legalized some form of cannabis as of March 2020. ProCon.org also reports that as of April 2020, 11 states, Washington D.C., and 22 states have legalized the recreational use of cannabis. These factors are expected to fuel cannabis packaging demand in the region.
- Over the forecast period, the Asia Pacific region is expected to grow the fastest in this market. This is due to the growing demand in Australia, India, China, and China for cannabis products. The region also houses some of the most prominent manufacturers of cannabis packaging, such as WestRock Company (U.S.), Bausch + Lomb Company (U.S.), and Mondi plc. (Austria).
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