According to a new research report by Global Market Insights Inc., the Cannabis Packaging Market size is set to exceed USD 356.3 million by 2028. A rapid shift toward sustainable & recyclable packaging solutions and product innovations due to the rapidly expanding demand for cannabis from the medical industry coupled with the increasing consumption of cannabis for recreational purposes.
The packaging process of cannabis is crucial on account of implementation of various regulations by different governments across the globe. For instance, medical cannabis is available in various forms such as concentrates, flowers, leaves, oils or extracts, or edibles. The demand for packaging of these forms of medical cannabis is expected to see in the near future.
The rapid legalization of cannabis consumption in the U.S. and the existing free environment in Canada are anticipated to drive the cannabis packaging market. Several U.S. states permit the use of cannabis for medical purposes with a proper prescription. Furthermore, a major trend in the cannabis packaging industry is the increasing consumption of cannabis for recreational purpose amongst the younger population.
The focus on branding, sustainability, and regulations has significantly impacted the packaging market for cannabis. Advancement in the packaging technology has facilitated the shift from conventional methods such as manual processing & packaging by labors, to sophisticated methodologies involving automated machines. The technology advancement and automation are gaining traction in the cannabis packaging market.
Browse key industry insights spread across 250 pages with 358 market data tables & 29 figures & charts from the report, “Cannabis Packaging Market Size, By Material (Plastics, Paper & Paperboard, Glass, Metal, Others), By Type (Flexible, Rigid), By Cannabis Form (Flower, Concentrates, Edible, Others), Industry Analysis Report, Regional Outlook, Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 - 2028”, in detail along with the table of contents:
Increasing usage of paper & paperboard is anticipated to support the market
The paper & paperboard segment is projected to cross USD 5.4 million by the end of 2028. Paper-based products are preferred packaging materials owing to their advantages, which include light weight, easy processing, wide availability, and excellent printability. The plastics segment accounted for the largest revenue share in 2021. Cannabis has been recognized for several medicinal properties and is therefore used in the formulation of drugs under few regulations.
Furthermore, various countries across the globe have decriminalized and legalized the use of cannabis for recreational purposes. This has enabled license holder manufacturers to cultivate and sell cannabis products for recreational and medical consumption. This led to a huge increase in demand for packaging for cannabis products. Paper & paperboard packaging provides flexibility and is cost-effective over other materials. In addition, it enables easy labeling of the product to disclose the necessary information to the consumer.
Flexible packaging to account for considerable market share
Flexible packaging type is estimated to register at a CAGR of over 12.0% in the cannabis packaging industry. The flexible segment accounted for the largest revenue share in 2021. Flexible packaging provides a proper printable substrate for visually attractive artwork and also allows the seller to print required labeling implemented by the government of various countries.
For instance, in some U.S. states, the processor, producer, batch & retailer information are printed on the package, followed by the mandatory labeling of “not for kids”. Flexible cannabis packaging is majorly used for medicinal purposes as it is easily disposable and convenient to open. However, legalization of cannabis for recreational purposes offers a further opportunity for the growth of the flexible packaging used for cannabis.
Consumers prefer flexible packages as they are easy to store, and the lightweight packaging option reduces shipping costs. Besides, flexible packaging offers better shelf life to cannabis products, thereby increasing the profitability of seller.
Cannabis concentrates to account for a considerable market share
Cannabis is the commonly used mind-altering drug type after alcohol. Various types of chemicals that cause intoxication are present in the flowering shoots and leaves of the cannabis plant. Cannabis can be smoked or consumed after pervading it with other edible products. Consumption of cannabis in any form results in relaxation, euphoria, increased sense of hearing, sight, & taste, and increased appetite. Consumption of cannabis concentrates for recreational purposes is witnessing growth and has been legalized in different countries, whereas some countries have imposed limits on the quantity consumed.
The cannabis packaging market from concentrates is anticipated to grow at a CAGR of 11.2% by 2028. New start-ups and cannabis manufacturing companies are focusing on the production of cannabis-infused cigarettes & cannabis-based beverages to meet the growing demand for cannabis products for recreational purposes, which are expected to rapidly increase the demand for cannabis packaging.
Strategic government initiatives are set to augment growth in Europe
Europe cannabis packaging market was accounted for a significant share of around 1.3 % in 2021. Europe is predicted to register a steady growth rate over the forecast period. Rising public awareness about the positive effects of cannabis has led to a significant shift in preference for cannabis products.
For instance, the European Medicines Agency (EMA) and the European Commission have approved Epidyolex, which is a cannabis-based drug used for treating childhood epilepsy. In addition, legalization and decriminalization have enabled the governments to enforce taxation on cannabis products. These factors have led countries in the region to legalize and decriminalize cannabis for medicinal & recreational purposes.
Berry Global Inc., Pollen Gear, Kaya Packaging, Green Rush Packaging, KushCo Holdings Inc., Drug Plastics Group, Cannaline Cannabis Packaging Solutions, and Impak Corporation are some of the leading players in the cannabis packaging industry. Other players operating in the global market include N2 Packaging, Dymapak, Diamond Packaging, Max Bright Packaging Ltd, and Packaging Bee.
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