Cannabis Packaging Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast 2023-2027

Cannabis Packaging Market Size 2023-2027

The cannabis packaging market size is forecast to increase by USD 5.82 billion at a CAGR of 25.26% between 2022 and 2027. Market expansion hinges on several pivotal factors, notably the burgeoning purchasing power of millennials within the cannabis industry, driven by their increasing acceptance and adoption of cannabis products for recreational and medicinal purposes. Additionally, the global trend toward decriminalization and legalization of cannabis in numerous countries presents significant growth opportunities for the market. This shift in the regulatory landscape not only widens the consumer base but also fosters a more favorable business environment for cannabis companies to operate and expand their offerings. Furthermore, the growing recognition of cannabis' medicinal properties and its increasing utilization in various therapeutic applications contribute to the market's growth trajectory. As these factors continue to shape the market, stakeholders must navigate evolving regulations and consumer preferences to capitalize on emerging opportunities and drive sustainable growth in this dynamic market.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

The market caters to diverse needs in retail stores and cannabis manufacturers. Polypropylene (PP) and polyethylene terephthalate (PET) are popular materials for packaging tinctures, flowers, oils, and pills. Innovations include child-resistant jars for safety and flexible bags for convenience. Sustainability drives the adoption of hemp packaging and sustainable materials. Initiatives like buyback programs and store credits encourage eco-conscious practices among consumers and suppliers.

This 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.

By Material

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.

By Region

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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 market in North America is the legalization 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 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 market in North America during the forecast period.

Market Dynamics

The market is evolving with a focus on sustainability and automation. With the rise of the medicinal cannabis industry, manufacturers are adopting eco-friendly materials like high-density polyethylene (HDPE) and low-density polyethylene (LDPE). Companies like Hippo Packaging and Origin Pharma Packaging offer compostable containers and ocean-reclaimed plastic solutions. To meet regulatory requirements, child-resistant options such as glass jars and child-resistant jars are popular. Initiatives like buyback programs and recyclable outer packaging further drive sustainability efforts. 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.

Key Market Driver

One of the key factors driving market growth is the growing millennial purchasing power. 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.

Significant Market Trends

A key factor shaping 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 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.

Major Market Challenge

Fluctuations in raw material prices are one of the key challenges hindering 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.

Market Customer Landscape

The market forecast 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 market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

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:

• 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
• The Boxmaker Inc.

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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments

• Material Outlook 
  • Glass
  • Metal
  • Plastics
  • Cardboard containers
• Type Outlook
  • Rigid packaging
  • Flexible packaging
• Geography Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing rapid growth with the rise of the cannabis industry, encompassing both medical and therapeutic applications as well as recreational cannabis offerings. To address regulatory requirements and ensure consumer safety, packaging solutions incorporate features like child-resistant closures, tamper-evident seals, and health warnings, enhancing security, reliability, and excellence. As the market evolves, there's a focus on product differentiation through branding and aesthetically pleasing designs while also addressing sustainability and environmental concerns. Plastic jars, droppers, and vaporizer containers are among the packaging types catering to cannabis-infused extracts, CBD-infused products, and medicinal marijuana. With an emphasis on user-friendly and instructional packaging, the industry aims to educate consumers on dosage recommendations and safe practices, ensuring the health and well-being of users.

Further, the market is dynamic and diverse, driven by the burgeoning cannabis industry. Key players like Niagara Herbalist are introducing innovative solutions such as child-resistant jars and tamper-evident packaging to ensure regulatory compliance and consumer safety. With a focus on product differentiation and branding, businesses are vying for market share amidst intense competition. As the developing cannabis market expands, packaging solutions cater to various product forms, including patches, edibles, topicals, and flower. Labeling and dose information are crucial for consumer education, while tamper-resistant and UV-resistant features safeguard against contamination and deterioration during transportation and storage. Innovation in materials and child-resistant mechanisms further drive the evolution of the cannabis packaging landscape.

Market Scope
Report Coverage	Details
Page number	149
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 25.26%
Market growth 2023-2027	USD 5.82 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	24.62
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 46%
Key countries	US, Canada, China, Germany, and the UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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.
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.
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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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