Dublin, Dec. 16, 2020 (GLOBE NEWSWIRE) -- The "Cannabis Packaging Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
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.
The cannabis packaging market is anticipated to witness notable growth in the next few years, owing to the rising demand for medical and recreational cannabis products for consumption. The increasing legalization of cannabis in various countries is likely to drive the future market.
The recreational cannabis application is expected to drive the market in the future, as it showed unprecedented growth in recent years. The Marijuana Business Daily reported flowers as the most preferred form of cannabis sold in the United States. The flower is packed in jars or flexible packaging bags.
The widespread legalization of cannabis has increased since 2018, due to which the market is still new and more advanced processing and packaging are not being used in the market. The manual methods are mostly used by cultivators to send their bulk produce to dispensaries. However, as the market matures, the demand for pre-packaged cannabis is expected to grow in the future.
This demand may not only drive the market in the future, but the increased competition is expected to see more premium and customized packaging solutions being offered in the market. The current players, like KushCo, offer customization through printing on different jars they offer.
Furthermore, starting in 2020, Chicago legalized cannabis sales and reported USD 10 million worth of cannabis sales in the first six days, since it was legalized. Almost 271,000 transactions were made during this period. On January 2, 2020, the Department of Revenue reported that, in the first round of applications for new cannabis dispensary licenses, it received more than 700 applications seeking almost 4,000 licenses.
The packaging of cannabis is essential for various forms to protect the flower's integrity, while the airtight containers allow the curing process of cannabis to develop over time. According to these strict regulations, cannabis products' packaging should have a single and uniform color, with a standardized font style. As more states have been legalizing medical cannabis, the cannabis industry across the world is growing at a tremendous rate, thereby fueling the demand for its packaging in the emerging marketplace.
The packaging of cannabis is the most crucial process, owing to various regulations imposed by different countries' governments across the world. For instance, medical cannabis is available in various forms, such as flowers or concentrates, which are extracted in the form of oils, extracts, or edibles. This medical cannabis packaging is growing, thus boosting various companies to offer holistic solutions to its manufacturers.
In August 2020, researchers in Israel have been testing the efficacy of cannabis terpenes in treating COVID-19 infections. The study conducted by the cannabis research and development firm Eybna and Cannasoul examined how a specific cannabis terpene formulation can treat the inflammatory conditions, such as cytokine storm syndrome, a common occurrence in severe COVID-19 cases.
Key Market Trends
Plastic Packaging Holds a Significant Market Share
The plastic packaging has been the preferred packaging option for different cannabis consumption forms, like tinctures, flowers, oils, patches, and pills. The plastic can meet the different challenges encountered by cannabis manufacturers.
Cannabis-infused extracts, tinctures, utilize plastic in the form of containers, droppers, and caps. When it comes to containers, plastic's low weight has been a driving factor for plastic containers. The containers used for packaging are very small and are sold in 15 to 30 ml sizes, due to which the manufacturers are not able to add regulatory information on the labels. The manufacturers usually have a carton based secondary packaging in which the container is packaged with the pamphlet containing the required information. Similarly, droppers and closure are also manufactured using plastics.
The cannabis-based products are packaged in small due to which they generate large volumes of packaging waste. The lower weight plastic has been able to address this concern as well. This was, further, backed by Hansen, that launched its lightweight jars in 2019. The company mentioned that the jars, along with their lids, weighed only 18 gms, and the company estimates that up to GBP 1.2 million could be saved on 10 million containers sold. Plastic rigid containers are also used for package flowers, pre-rolls, and containers for cartilages.
The flexible pouches can meet the stringent regulations for packaging cannabis. The Chinese suppliers have been able to capture the flexible packaging market due to their low-cost offerings and the absence of major players. Like Amcor, players have abstained from this market due to the uneven legal landscape of the cannabis market.
North America Holds Significant Market Share
The North American market for cannabis packaging is estimated to account for a significant market share. The market in this region is primarily driven by growth in the US and Canadian markets. Cannabis was legalized for both medical and recreational usage in Canada in 2018. Only 11 states and the District of Columbia have legalized cannabis for recreational usage in the United States. In total, 33 states in the United States have legalized cannabis.
Competitive Landscape
The cannabis packaging market is a highly consolidated market with few top players dominating the market's significant share. 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.
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.4 Assessment of COVID-19 Impact on the Cannabis Packaging Market
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for Medical and Recreational Cannabis Products
5.1.2 Legalization of Cannabis in Various North American Countries
5.2 Market Restraints
5.2.1 Stringent Regulation Related to Cannabis Packaging
6 CANNABIS APPLICATIONS (QUALITATIVE ANALYSIS)
6.1 Medical
6.2 Recreational
7 MARKET SEGMENTATION
7.1 By Type
7.1.1 Rigid Packaging
7.1.2 Flexible Packaging
7.2 By Packaging Materials
7.2.1 Glass
7.2.2 Metal
7.2.3 Plastics
7.2.4 Cardboard Containers
7.3 Geography
8 COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 KushCo Holdings Inc.
8.1.2 JL Clarks Inc.
8.1.3 Kaya Packaging
8.1.4 Cannaline Cannabis Packaging Solutions
8.1.5 Funksac LLC.
8.1.6 Dixie Elixirs & Edibles
8.1.7 Pollen Gear LLC.
8.1.8 N2 Packaging Systems
8.1.9 Green Rush Packaging
8.1.10 Isodiol International Inc.
8.1.11 Berry Global Inc.
9 INVESTMENT ANALYSIS
10 FUTURE OF THE MARKET
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