Cannabis Packaging Market in North America 2017-2021
About Cannabis Packaging
The cannabis industry in North America is like other legal consumer goods industries, such as food, tobacco or alcohol. Some cannabis-infused products already look strikingly similar to existing consumer products. In addition to 'flower' which is the smokable leaf that most people usually associate with cannabis, there are many cannabis-infused products that range from edibles such as snacks and meals, to concentrates such as pills and oils, and beverages.
The cannabis packaging market in North America has undergone significant growth, and various companies have recently launched recyclable packaging solutions such as compostable cellophane bags, metal cans, and compostable pouches. Product marketing through packaging is a focus area for packaging companies, but meeting local and federal laws is critical for success.
Technavio’s analysts forecast the cannabis packaging market in North America to grow at a CAGR of 10.40% during the period 2017-2021 .
Covered in this report
The report covers the present scenario and the growth prospects of the cannabis packaging market in North America for 2017-2021 . To calculate the market size, the report considers the revenue generated from the sales of cannabis packaging.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Cannabis Packaging Market in North America 2017-2021
Technavio recognizes the following companies as the key players in the cannabis packaging market in North America Kush Bottles, Laguna Blends, Maple Leaf Green World, and J.L.Clark :
Other Prominent Vendors in the market are: KAYA CANNABIS, Lexaria Bioscience, and LifeLoc Technologies.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Growing popularity toward sustainable packaging. The trade-off for cannabis market to become sustainable is cost. Kush Bottles has established a recycling program at Colorado for pop-top containers, and some consumers try to decrease the surface area on barrier bags when possible. Recyclable paperboard choices are becoming accessible, and reusable materials like metal and glass are popular. J.L. Clark has the advantage of its large base of existing metal bodies which don’t require tooling, producing metal cannabis packed containers with the flexibility of decorated plastic child-resistant lids.”
According to the report, one of the major drivers for this market is Growing cannabis sales market. The North American cannabis market posted a revenue of $6700 million in 2016, marking about 30% increase from the 2015 figures. Cannabis sales are expected to grow at a CAGR of 10.40% during the forecast period when the North American market is expected to reach $8900 million in 2021. In the case of the cannabis boom, legalization is bringing new users to the market. In Colorado, Washington, and Oregon, recreational use was legal before 2016, with the consumer spending on cannabis about 62% during 2015-2016. Seven US states legalized cannabis in some form on the Election Day. The sudden popularity of alternative ingestion techniques, such as weed-laced topical sprays and edibles fueled the growth of the growing cannabis market in North America, thereby subsequently boosting the cannabis packaging market in North America.
Further, the report states that one of the major factors hindering the growth of this market is Unpredictable market conditions. The cannabis packaging market witnesses the presence of a number of small owners and operators. Operations and sales must take place within states. The retail licenses are only granted to state residents. This does not prove beneficial for large companies. A major hurdle for the industry is the lack of credit. Despite legalization, credit card companies and federally regulated banks steer clear of the cannabis packaging industry.
Kush Bottles, Laguna Blends, Maple Leaf Green World, J.L.Clark , KAYA CANNABIS, Lexaria Bioscience, and LifeLoc Technologies.