Cannabis Packaging Market Forecasted To Reach USD 4.12 Billion By The End Of 2025
Key players in the Cannabis packaging market are Kush Bottles, Laguna blends, Maple leaf green world, J.L. Clark, Kaya Cannabis, Lexaria Bioscience and Lifeloc Technologies.
The companies are coming up with new mergers, acquisitions and new packaging trends to stay ahead in the competition. Kush bottles, which is a leader in the cannabis packaging has launched new labeling, printing and in-house application capabilities that will help shorten the lead time on production. With these new capabilities, the company will be able to process their customer`s customized packaging needs. They have also hired the packaging industry veteran Mike Alejos as the Director of Production to look over the new labeling capabilities. Along with these new implementations, Kush Bottles announced its plans to change the name of the company to KushCo Holdings, Inc. This change in name reflects the company`s shift to a more diversified business model which offers a broad range of ancillary products and services to cannabis and CBD businesses
The global cannabis packaging has been estimated to be USD 1.10 Billion by the end of 2018 and is forecasted to reach USD 4.12 Billion by the end of 2025. Countries considered in this estimation are U.S., Canada and Uruguay, Australia, Netherlands, Israel and Jamaica. U.S., Canada and Uruguay have been considered primarily owing to its legalized sale, with the latter two witnessing a promising start in revenue in July 2018.
Predictions estimate, there will be 1700% rise in cannabis users by the end of 2025 with packaging likely witnessing a 26.4 % growth by the end of the forecasted period. Short term growth projections keeps the global growth rate at 19.97 % by 2020 as two major regional market heads to elections in the coming years.
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Federal laws and cannabis packaging norms is a short term restraint for the industry as it cultivates in nonlinear growth for manufacturers as inventory cost raises by 12.89% with every change in policies and norms. Players in the United States would likely be the most affected with these fluctuating polices as the packaging industry is at the most nascent stage.
Customized packaging, design and recyclable materials are the current trends up roaring in this market with the recyclable materials gaining a 6 % rise in market share in the U.S. regional market.
As more states legalize medical marijuana, the cannabis industry across the globe has grown more than 310% in the past four years.
According to the Association for Packaging and Processing Technologies, marijuana has been legalized at some or the other level in 28+ states and is pending further legalization in 13+ others
By the year 2020, it is predicted the cannabis industry is expected to reach $24.5 billion alone in the U.S., with $11.2 billion alone for recreational products
While 89% of customers preferred cannabis flowers in 2017, by 2020 only 61% of customers prefer cannabis flowers, instead favoring concentrated, processed cannabis formats
In Europe, the upside for medical marijuana is enormous. The leader, Germany, passed medical marijuana legislation in 2016. The European Cannabis Report said the European market could be worth $65.4 billion annually if every country were to legalize marijuana
The US rigid cannabis packaging market was valued at USD 260.34 Million in 2017 and is expected to register a CAGR of 18.2%
The plastic cannabis packaging market is expected to reach USD 1.22 billion by the end of 2025 registering a CAGR of 18.4% from 2018 to 2025
With a cannabis market growth rate ranging from 25% in Colorado to as much as 135% in Nevada, the market is opening up new opportunities in the US market
The packaging is very important for various forms of Cannabis like the Jar protects the integrity of the cannabis flower; the airtight containers allow the curing process of the cannabis to develop over time.
Inventory management remains a significant problem for this industry owing to frequent regulation change. Order quantities per one P.O have decreased 29% as retailers and growers have decreased in order confidence. 2017 saw the highest reject orders owing to regulations change in packaging compliances
Year 2019 would see a decline in the short term growth rate owing to precedential elections scheduled in 2020. Predications indicate, growth rate would move north by 2.5 % post 2020. Customized packaging increased on a YoY basis of 12% during 2016–2017 and is further predicted to climb the growth rate
Film and sheet and plastic resins accounted for over 69 percent of the materials used in the U.S. flexible packaging industry back in 2016 and this number is on the increase since then. A total of less than 1% of the flexible packaging was used for cannabis back in 2016 but with so many states being legalized and the cannabis packaging market gaining grip, the flexible packaging attributing to cannabis packaging is around 1.5%
Marijuana consumption in Uruguay has been increasing since it has been introduced to the eyes of public scrutiny In 2011, 5.3% of the population admitted to having consumed marijuana. Life prevalence had quadrupled by 2016, with 22.1% of Uruguayans acknowledging some consumption
The significant challenges for cannabis packaging players to penetrate the market are cost competitiveness. Reports indicate majority of the retailers in order to survive the government regulated price point of USD 1.50 dollar would prefer cheap packaging, even on premium products.
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