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The cannabis packaging market size is estimated to grow at a CAGR of 25.26% between 2022 and 2027. The market size is forecast to increase by USD 5,818 million. The growth of the market depends on several factors such as the growing millennial purchasing power in key cannabis industry, the rising number of countries decriminalizing and legalizing cannabis, and the increasing medicinal application of cannabis.
This cannabis packaging market report extensively covers market segmentation by material (glass, metal, plastics, and cardboard containers), type (rigid packaging and flexible packaging), and geography (North America, APAC, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the cannabis packaging market growth is the growing millennial purchasing power in the cannabis industry. There is a growing interest among millennials in cannabis and have been significant drivers behind the increasing acceptance and legalization of cannabis in many jurisdictions. In addition, the growing preference and changing attitudes towards cannabis have fuelled the growth in the demand for legal cannabis.
Moreover, it is expected that the increasing purchasing power of the millennials will fuel the demand for legal cannabis among this demographic. In addition. there is a growing trend among millennials experimenting with new products and experiences such as cannabis. Additionally, the cultural shifts surrounding cannabis, such as its use for wellness, relaxation, and socializing are positively impacting the market. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the cannabis packaging market growth is the emergence of smart packaging of cannabis. The main advantages of smart packaging are that it offers extra information to consumers, regulates temperature, offers protection against theft, and enables manufacturers and retailers to track their products during transit. Additionally, smart packaging helps in increasing the shelf life of a product with the use of indicators and sensors.
Moreover, there is a significant introduction of smart packaging solutions in the global cannabis packaging market. Smart rigid plastic packaging plays a crucial role in offering product information using Quick Response (QR) code. Additionally, this type of packaging enhances the customer experience with the incorporation of several technologies, such as QR codes, near-field communication (NFC), radio-frequency identification (RFID), and embedded barcodes. Hence, such factors are expected to drive market growth during the forecast period.
Fluctuations in raw material prices of cannabis packaging are one of the key challenges hindering the cannabis packaging market growth. Some of the key raw materials required for the manufacturing containers include Sand, soda ash, and plastic. As a result, any fluctuations in the availability of these raw materials significantly impact their overall prices. In addition, the rise in price of a particular raw material can boost the overall price of the end product.
Moreover, one of the main raw materials that accounts for more than 50% of the total cost of raw materials in the manufacture of glass containers is the price of soda ash. Therefore, in order to compensate for the higher costs incurred on raw materials, container manufacturers are forced to increase the price of the end-products. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cannabis Packaging Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Berry Global Inc: The company offers cannabis packaging such as cannabis bottles and vials, film and laminates, tapes and adhesives, and caps and closures.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The glass segment is estimated to witness significant growth during the forecast period. There is an increasing use of glass cannabis due to its non-hazardous nature. Additionally, this segment is considered a healthy alternative to plastic and metal; however, it is also breakable, creating the potential for dangerous situations. Packaging plays a crucial role in the preservation of cannabis. The main advantage of the glass segment is that it is an impermeable material that keeps air and other liquids out, which means that glass bottles never affect the flavor or freshness of the product.
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The glass segment was the largest segment and was valued at USD 306.30 million in 2017. Furthermore, the main advantage of this segment is that the external temperatures, such as heat, do not affect the material or shape of the glass, unlike plastics, which could melt and affect the product quality. As a result, cannabis is preserved properly and safely when packaged in glass containers. In addition, the main feature of the glass segment is that it helps to maintain the internal temperature of the bottle, thereby maintaining the quality of the product inside the glass bottle. Furthermore, this segment is one of the safest packaging materials for consumable products as it is non-toxic and does not require any other material lining. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors that is significantly contributing to the growth of the global cannabis packaging market in North America is the legalization of cannabis by several governments across the US and Canada. These regions are highly saturated for cannabis products, as most of the major market players of cannabis products worldwide are concentrated in the region.
As a result, it will positively impact the cannabis packaging market in the region. Furthermore, the increasing popularity of cannabidiol (CBD) oil products and the growing number of countries in North America that are legalizing cannabis products are the significant drivers that will impact the growth of the cannabis packaging market in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of global cannabis packaging market witnessed significant growth as the pandemic substantially increased the demand for medical cannabis in the US and New Mexico. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of business operations in the regional legal cannabis market. Such factors are expected to drive the market during the forecast period.
The cannabis packaging market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Cannabis Packaging Market Scope |
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Report Coverage |
Details |
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Page number |
149 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 25.26% |
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Market growth 2023-2027 |
USD 5,818 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
24.62 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 46% |
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Key countries |
US, Canada, China, Germany, and the UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Berry Global Inc., Cannabis Promotions, Cannaline, Diamond Packaging, Drug Plastics Group, Dymapak Quark Distribution Inc., Elevate Packaging Inc., Green Rush Packaging, Greenlane Holdings Inc., Kaya Packaging, Kynd Packaging LLC, Max Bright Packaging Ltd., MMC Depot, N2 Packaging Systems LLC, Norkol Inc., Packaging Bee, RXD Co., Sana Packaging, StoreSac, and The Boxmaker Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Material
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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