The Marijuana packaging market is filling cash registers and increasing profit margins. According to market research firm Research and Markets, it is expected to grow at a CAGR of 24.3 percent globally from 2021 to 2026 and is expected to grow significantly over the next few years. The expected increase is due to rising consumer demand for medical and recreational marijuana products. And the legalization of Marijuana in various countries – much like it is in the United States – is likely to continue.
Legal, recreational marijuana is expected to be a significant driver for the packaging market, with unprecedented growth in recent years. According to Marijuana Business Daily, "flower" – the plant matter, also known as "buds" – is the most popular type of Marijuana sold in the United States. In addition, floral arrangements are typically packaged in jars or flexible packaging.
The rapid legalization of Marijuana consumption in the United States and the overall legal environment in Canada is expected to drive ancillary demand for Marijuana packaging in North America. In the United States, 36 of the 50 states allow patients with a valid prescription to use medical Marijuana. In the meantime, recreational Marijuana is now legal in 19 states and Washington, DC, and Guam. Another 13 states, as well as the United States Virgin Islands, have recently decriminalized its use.
Because of the various regulations imposed by different municipalities, Marijuana packaging is a critical sector component. Additionally, Marijuana comes in a variety of forms. Aside from the flower mentioned above, oils, extracts, edibles, topicals, and beverages are becoming increasingly popular. Additionally, edibles come in various forms – gummies, chocolates, cookies, and sauces are just a few of the products competing for market share.
A notable trend in the Marijuana packaging industry is capitalizing on the rising recreational Marijuana consumption among the younger population. According to Research and Markets, due to high brand saturation among Marijuana players, the packaging is critical for smaller and emerging players to establish and strengthen brand image.
The firm also claims that nationwide lockdowns during the Covid-19 pandemic increased demand for Marijuana. "As the general idea of stocking up on Marijuana products in fear of scarcity became popular, multiple retail stores saw a surge in consumer traffic." According to Research and Markets, "statistics indicate a high growth in retail sales of marijuana products in March 2020, creating an ancillary demand for Marijuana packaging products.
The emphasis on sustainability, regulations, and branding has significantly impacted Marijuana packaging, facilitating the transition from traditional methods, which relied on manual labor for processing and packaging, to more sophisticated, automated methodologies. As a result, automation is gradually gaining traction in the Marijuana packaging industry as brands become aware of the benefits. According to the firm, this is expected to become more popular as the legal landscape for Marijuana becomes more standardized.
Because of the industry's growth and evolution, label and packaging companies invest in RD to provide products and services to meet this new demand. As a result, Marijuana brand owners now have access to market-specific solutions for aesthetics, functionality, and legal compliance.
It's past time to look at some of these suppliers and the most recent innovations, issues, and trends affecting the Marijuana label and packaging market.
Cold Foil Elevates Marijuana Packaging:
For years, top brands in the tobacco, wine, and spirits markets have used cold foil substrates to help grow brand presence. However, given that the Marijuana market has a similar demographic, cold foil embellishments could be the icing on the cake.
Here are a few examples of how hard foil substrates can improve Marijuana packaging:
Cold foil embellishments make this item stand out on the shelf. Dispensaries across the United States have different but similar store environments. They are usually dimly lit and have products displayed on wall shelves and in glass cases. The walls are a dark color, and there is usually a black light in the room. Newer, trendier stores have brighter lights and a mix of greenery, wood, and metal, giving them a hipster, boho vibe. All of these factors must be considered when designing Marijuana packaging, and cold foil is ideal for catching the eye in various retail settings.
Furthermore, millennials make up the majority of this new market, and this demographic is known for their propensity to buy on the spur of the moment. When you combine that with the market's newness, the audience is more than willing to try new brands and test different products until they find one they love. To persuade millennials to buy on the spur of the moment, your product must appear cooler, different, and better in various settings.
Quality matters. How does one convey quality? Cold foil, of course! You can scream high quality from the rooftops. Still, if your packaging is basic, your customers won't be able to tell the difference between your premium Marijuana products and the low-quality scams. Just like in the wine and spirits market, using cold foil embellishments on your labels and packaging elevates your product to premium status. Customers and retail store owners assess by the look, the feel, and the thoughtful design of the package if a brand is of a higher caliber.
Quality is important. How does one communicate quality? Of course, cold foil! You can shout high quality from the rooftops. Still, if your packaging is basic, your customers will be unable to distinguish between your premium Marijuana products and the low-quality scams. Using cold foil embellishments on your labels and packaging, just like in the wine and spirits markets, elevates your product to premium status. Customers and retail store owners determine whether a brand is of a higher caliber based on the package's look, feel, and thoughtful design.
Cold foil serves as a deterrent to counterfeiters. There is a tremendous opportunity to be "The First" in a new product category in this market. However, as Coco Chanel wisely stated, "If you want to be original, be prepared to be copied." You put your blood, sweat, and tears into creating your unique brand, but a convincing knock-off can confuse the marketplace if you don't invest in quality packaging. Using anti-counterfeiting details on your labels and boxes, such as cold foil patterns or a security cold foil hologram, assists retail store owners in detecting low-quality knock-off products before they are placed on the shelves. Custom holograms with your company logo and brand colors combined with cold foil substrates take product security to the next level. They are an excellent investment in the future of your brand. Educating your customers about your brand packaging will also help them spot a knock-off and avoid consuming a counterfeit. The ability to tell the difference between your original, premium product and a knock-off begins with the design of your product packaging – use cold foil, and counterfeiters will struggle to take your market share.