Cannabis Packaging Market Analysis

Cannabis Packaging Market Analysis

The plastics segment is expected to grow at a CAGR of 11.8% during the forecast timeframe. Plastics are used in the manufacturing of the majority of packaging products and provide ease of design & cost-effectiveness. They are used to produce containers, bottles, closures, pouches, and other packaging products.
 

Plastics packaging offers various properties such as easy moldability, strength, and effective barrier against external environments at a lower cost compared to other materials such as metal, glass, and paper. Plastic packaging is one of the preferred packaging choices for different cannabis forms such as flowers, tinctures, oils, pills, and patches.
 

The flexible packaging type segment accounted for a 13.2% share in 2021 and is expected to reach USD 48,250.8 thousand by 2028. Flexible packaging products such as pouches produced from plastic or paper can meet the stringent regulations on packaging cannabis. Several suppliers across the globe have been able to grab a significant share in the flexible packaging market owing to the low-cost product offerings and the absence or withdrawal of major players from the market due to stringent regulation of cannabis.
 

The cannabis flower segment is projected to experience the highest CAGR of 12% from 2022 to 2028. Several countries, such as the U.S. and Canada, have started the legalization of the product for recreational usage, which has enhanced the demand for cannabis flowers. The recreational use of cannabis involves the use of various forms of cannabis for personal enjoyment instead of medical purpose. Packaging for recreational cannabis is used for the packaging of dry forms of marijuana, which include a shredded green & brown mix of flowers, stems, leave, and seeds.
 

North America cannabis packaging market share is anticipated to grow at a significant rate of 11.9% over the forecast timeframe. The legalization of cannabis usage for recreational purpose in various U.S. states, such as California, Michigan, Colorado, Florida, Nevada, Washington, Oregon, Massachusetts, Arizona, and Illinois, have enhanced the regional market in the last few years. Moreover, other states across the U.S. are also encouraging the medical use of cannabis, such as Arkansas, Alaska, Connecticut, Louisiana, Hawaii, Maryland, Montana, Minnesota, Rhode Island, Vermont, and Utah, along with established medical cannabis programs.
 

Growth in the North America cannabis industry along with the presence of several packaging companies is driving the regional cannabis packaging market. Growth in North America region is attributed to the widespread farming and adoption of cannabis in countries such as the U.S. and Canada.
 

Several small, medium & international players are operating in the global cannabis packaging market. Cannabis packaging companies adopt various key growth strategies, such as investments, expansion & new product launches, to gain a higher market share.