Globally, it is expected to grow at a CAGR of 24.3% during the forecast period of 2021 to 2026, according to Research and Markets, a market research firm, and is expected to witness significant growth in the coming years due to the growing consumer demand for medical and recreational cannabis products. The increased legalization of cannabis in various countries is likely to keep this trend going.
Legal recreational marijuana is expected to be a huge driver for the packaging market as it has shown unprecedented growth in recent years. Marijuana Business Daily reports that "flower" - the plant substance, also known as "bud" - is the most popular form of cannabis sold in the United States The most popular form of cannabis sold in the U.S., and flower usually comes in jars or flexible packaging.
In North America in particular, the rapid legalization of cannabis consumption in the U.S. and the overall legal environment in Canada are expected to strongly drive demand for cannabis packaging. In the U.S., 36 of the 50 states allow patients to use medical marijuana with an appropriate prescription. Meanwhile, recreational marijuana is now legal in 19 states, as well as Washington, D.C. and Guam. Thirteen other states and the U.S. Virgin Islands have also legalized its use.
Due to the various regulations implemented in different cities, the packaging of marijuana has become an important part of the industry. Marijuana comes in many forms. In addition to the aforementioned flowers, oils, extracts and edibles are becoming increasingly popular, as well as topical and beverages. Food products as diverse as fudge, chocolate, cookies and sauces are among the many products vying for market share.
A very bright trend in the cannabis packaging industry is capitalizing on the growing recreational cannabis consumption among young people. According to Research and Markets, packaging plays a key role in building and strengthening the brand image of small and emerging businesses, as cannabis producers are highly saturated with brands. The report also notes that in an epidemic, urban lockdowns have triggered increased demand for cannabis.
Concerns about sustainability, regulations and branding have had a significant impact on cannabis packaging and have facilitated a shift from traditional methods that rely on manual processing and packaging to more sophisticated, automated methods. The combination of automation is gaining traction in the cannabis packaging industry as brands realize its benefits. This is expected to become more popular as the cannabis legal landscape is standardized.
Given the growth and evolution of the industry, labeling and packaging companies are dedicating R&D resources to providing products and services to meet this new demand. Cannabis brand owners now have market-specific solutions for aesthetics, functionality and legal compliance. Now is the time to learn about these suppliers and the latest innovations, issues and trends affecting the cannabis labeling and packaging market.
01. Packwolves
Positioned as an on-demand cannabis packaging platform, Packwolves announced a partnership with Arizona- and California-based cannabis brand Mohave Cannabis to provide premium cultivation and quality indoor flower products. In addition to designing and manufacturing custom packaging and products, Packwolves allows manufacturers to purchase pre-designed, child-resistant packaging for faster deployment of their cannabis products.
The company's partnership with Mohave Cannabis came from a co-designed custom glass jar inspired by the design and feel of fine spirits bottles, says Curtis Devine, owner and founder of Mohave Cannabis: "Frankly, there is nothing else like it on the market. Our partnership with Packwolves offers an experience that is as carefully curated, nuanced and sophisticated as the product itself."
Founded by Tom Vickers, Packwolves brings a forward-thinking approach to design to the cannabis industry, helping newcomers and established companies alike quickly create high-quality packaging, swag and other products. "As more and more states legalize the use of cannabis, too many entrepreneurs must take all types of approaches to deploying their branded products, such as purchasing packaging, boxes and product stickers from various vendors on Amazon, and we believe our unique one-stop solution will be a welcome resource for many manufacturers."
In addition to custom packaging, Packwolves offers pre-designed bags for rapid product deployment. They also have a dedicated in-house design team that can help clients launch their brands. "Design can raise the profile of cannabis," says Vickers, "and we're building a design-forward platform that can positively impact and educate the public about the often-stigmatized cannabis plant."
02. S-OneLP's Free Cannabis Resource Guide
S-One Labels & Packaging has launched a free cannabis resource guide to help label and flexible packaging processors navigate the emerging legal cannabis market. "In recent years, many of S-OneLP's customers have diversified into the legal cannabis market, which has essentially emerged overnight with a whole new range of packaging applications," said Tom Hauenstein, vice president of sales for S-OneLP, "As with any new endeavor, with our customers struggle to find information on child-resistant packaging requirements, changing regulations and film barrier properties that keep cannabis products fresh, the legal cannabis market has also emerged as a problem. Customers often turn to the experts at S-OneLP to help them navigate this new and dynamic environment."
The Cannabis Resource Guide is a website designed for label and packaging manufacturers who want to provide sophisticated, high-end packaging with superior shelf appeal, comply with state regulations, keep products fresh and, in many cases, environmentally friendly.The Cannabis Resource Guide brings together industry knowledge, interviews with front-line customers and information about S-OneLP's products.
The highlight of the Cannabis Resource Guide is an interactive map detailing packaging laws in each U.S. state. Customers are most concerned with ensuring that cannabis packaging complies with state laws. The colorful map allows visitors to quickly see which states have legalized recreational or medical marijuana laws, as well as where marijuana is still illegal. Once visitors click on a specific state, they are directed to the state regulations that regulate marijuana labeling and packaging. The cannabis resource guide also covers child-safe packaging, how to achieve it, and what the standard means for the broader cannabis packaging industry.
03. Mactac's Form and Function
Mactac has designed new pressure-sensitive paper and film cannabis label products, announcing the company's entry into this fast-growing market. mactac's cannabis label materials offer excellent form and function, and they are also proven to withstand a range of environmental and other challenging conditions, such as heat and moisture.
Today's cannabis market is growing rapidly, which is full of opportunities for dispensaries, growers and processors," said Sara Damante, senior marketing manager for Mactac Performance Adhesives. In fact, the global cannabis market is expected to reach $73.6 billion by 2027, growing at an unprecedented CAGR of 18.1 percent. Through our knowledge of market and packaging trends and needs, Mactac is expected to grow in tandem with the cannabis industry."
Mactac's cannabis labels are available in paper and film constructions and are designed to meet the labeling needs of all forms of cannabis. They can be used in a wide range of applications, including glass, easy-open and reversible cap vials, cartons and pouches. In addition, they address both consumer and medical cannabis needs.Markof the medical cannabis market, ensuring enhanced label readability and secure, long-lasting performance.
04. Going "green" with Acucote
Acucote has expanded its portfolio of labeling materials for the cannabis industry. According to Melissa Hutton, Marketing Manager, "The increasing legalization of medical and adult-use cannabis is driving a significant growth curve in this market. We created a line of stock cannabis facestocks, adhesives and lining papers so our customers can quickly and easily meet the needs of dispensaries and capture the attention of consumers."
The portfolio features a new eco-friendly facestock, 60# hemp paper. It is made from 25 percent hemp and 75 percent post-consumer wood. Other substrates used for retail and decorative labels include backing film, variable print film and backing paper. Aluminum foil and metallized paper are also popular with cannabis producers, and Acucote offers bright and dull silver and gold foil, as well as silver metallized paper.
The portfolio also features tamper-resistant materials, as product security is a major concern in this market. Finally, the portfolio includes materials for plant lifecycle labeling and digital topcoat materials for dye, pigment, laser, UV inkjet and HP presses.
The Acucote Cannabis portfolio includes seven different adhesives, including P2000 (durable rubber resin for plant life cycle), P50 (durable acrylic resin for plant life cycle), CP1 (environmental rubber resin with biodegradable components), SX780 (tackifying acrylic resin for tamper resistance), GPX (general purpose permanent acrylic), GPX Blockout (black opaque permanent acrylic), and 31PB (tacky acrylic for tight mandrel applications).
