February 23, 2024
Cannabis Packaging Market

Protective Packaging Boosts Growth of the Cannabis Packaging Market

The global Cannabis Packaging Market is estimated to be valued at US$ 2.64 Bn in 2023 and is expected to exhibit a CAGR of 25.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The cannabis packaging market involves packaging products specially designed for cannabis and cannabis-derived products. Cannabis packaging products include containers, bags, boxes, bottles, and other packages that provide protection and seal to preserve cannabis and cannabis derivatives such as edibles, extracts, topicals, flower pre-rolls, tinctures, among others. Protective packaging solutions for cannabis products prevent contamination, moisture absorption, protect from damage during transportation and distribution. Cannabis packaging products also adhere to regulations regarding safety, labeling and childproofing requirements for cannabis products.

Market key trends:

Tamper-evident and anti-counterfeiting packaging is a key trend in the cannabis packaging market. Manufacturers are focusing on packaging design and technologies that provide authentication and easy to detect tampering. Sustainable and eco-friendly packaging made from renewable and recyclable materials is another important trend. With growing environmental concerns, cannabis packaging manufacturers are offering packaging solutions made from renewable materials like sugarcane and trees that reduce plastic waste. Innovation in packaging formats suitable for different types of cannabis products is also a notable trend in the market.

Porter’s Analysis

Threat of new entrants: The cannabis packaging industry requires high capital investments for machinery and equipment. Regulatory challenges also make the entry difficult for new players.
Bargaining power of buyers: The buyers have moderate bargaining power due to the availability of several packaging solution providers in the market. However, differentiated packaging options provide buyers limited control over prices.
Bargaining power of suppliers: The suppliers have moderate bargaining power due to availability of alternate raw material sources and machinery manufacturers. However, specialized machinery and materials enhance their bargaining power.
Threat of new substitutes: There are limited substitutes for packaging in the cannabis industry due to strict regulations. However, alternative packaging like paper bags pose minor threat.
Competitive rivalry: The industry competition is intense with the availability of numerous regional and global players.

Key Takeaways

The Global Cannabis Packaging Market Size is expected to witness high growth, exhibiting CAGR of 25.8% over the forecast period, due to increasing legalization of cannabis for medical and recreational purposes across regions.

The North American region dominates the cannabis packaging market owing to the large consumer base and early legalization of cannabis in countries like the US and Canada. The Asia Pacific region is expected to exhibit the fastest growth over the forecast period attributed to growing medicinal cannabis acceptance in countries like Australia, China, and South Korea.

Key players operating in the Cannabis Packaging market are Kush Supply Co., J.L.Clark, KAYA Packaging, Impak Corporation, Pollen Gear, Maple Leaf Green World, Lexaria Bioscience, Cannaline Cannabis Packaging Solutions, Green Rush Packaging, Berry Global, Pacific Packaging, Sun Grown Packaging, Sana Packaging, SKS Bottle & Packaging, SWAGPLUG, HLP Klearfold, N2 Packaging Systems, Dymapak, Pollen Gear, and Funksac. These players are focusing on new product launches and geographical expansions to gain a competitive edge in the market.

*Note:
1.            Source: Coherent Market Insights, Public sources, Desk research
2.            We have leveraged AI tools to mine information and compile it