With marijuana being legalized in many countries, the market for this recreational element has increased magnanimously. Whether to use for recreational purpose of pharmaceutical use, the cannabis market has shown tremendous growth in the past few decades. Many investors have already invested in this prospering market to reap a multitude of benefits. When it comes to gauging the steadfast development of the cannabis industry, packaging market is undoubtedly at the forefront.
Popularly known as green packaging, the cannabis packaging has become a significant trend that focuses on weed products packaging in recyclable, compostable and biodegradable materials.
Cannabis packaging market had a USD 101.48 Billion market value in 2019, which is predicted to mount up to USD 297.51 Billion by the year 2025 at an amazing CAGR of 22.59%.
Legalization of Cannabis: A Major Trigger for the Growth of Cannabis Packaging
Owing to the rigorous regulation imposed by the different government of countries, packaging has become the most crucial process in the marijuana industry. According to reports, the global cannabis packaging market is expected to showcase tremendous growth in the next five years due to the growing demand for recreation and medicinal cannabis products. Moreover, the legalization of cannabis in significant countries has contributed to the sudden growth of this global market.
Uruguay legalized cannabis in the year 2013 for recreational use. In October 2018, Canada flagged of the legal cultivation, possession and acquisition of cannabis and related products. Furthermore, U.S. states and countries like Georgia and South Africa also legalized the usage of marijuana in different products. Over the years, the massive cannabis production has fuelled the growth of the packaging process.
It is essential to understand that the cannabis industry has to follow stringent guidelines and regulation enforced by different government bodies. That’s the reason, cannabis manufacturers have given special attention to the packaging of cannabis products. According to a few guidelines, quality marijuana package must be re-sealable, child-resistant, tamper-evident and opaque (for edible cannabis products. The global cannabis packaging id differentiated according to the product, material, region and end-use.
The significance of marijuana packaging equipment in the industry has further triggered the growth of the packaging market. The manufacturers have made the packaging their primary highlight to ensure everything falls into place. The growth is positive and expected to create a boom in the cannabis industry for the next five years. Since 2018, there have been plenty of advancements in the cannabis packaging industry. Whether it is few regulations or inclusion of environment-safe packaging materials, the cannabis packaging market is all set to emerge as a trailblazer.
What the Market Trends Have to Say about This Magnanimous Growth?
The forecast period from 2018 to 2028 is said to be crucial for the cannabis packaging market. According to industry experts, the current rate of growth is an ideal indicator for a perfect ad profitable future of the cannabis packaging market. A new report states that the global marijuana packaging market will soon touch USD 5.20 billion by 2026. As more and more countries start to legalize marijuana, the growth of the cannabis industry will skyrocket by 310% in the next four-five years. A few significant and intriguing findings from the reports are mentioned below-:
- During the forecast period, the cannabis packaging market in Uruguay will grow at a steady rate of 18.8%. Since the legalization in Uruguay in 2013, the consumption has significantly increased.
- One of the significant challenges in cannabis packaging is the competitive cost. According to the reports, major retailers will prefer cheap packaging to survive the government price point, i.e., USD 1.50.
- The legalization of medical use of marijuana in the U.S. states has resulted in significant growth of the packaging market. With its current flow, an anticipated growth at CAGR of 18% can be expected.
- A major influencer in the growth is the contribution from significant cannabis players in the market who are continually investing and collaborating with a view to developing new cannabis product catering to customer demands.
- Some of the prominent companies that are expected to make a big move in the coming years include, Cannabis Science Inc., Medical Marijuana Corp, Kush Bottles, Maple Leaf Green World, KAYA CANNABIS, Bioscience and Cannaline.
Continuous research and studies are going on regarding the development of cannabis packaging industry. One thing which is quite defined by the reports so far is that marijuana packaging market will be the new and revolutionized face of global marijuana industry bringing a radical change.