North America - Cannabis Packaging Market by Material and Type - Forecast and Analysis 2023-2027

North America Cannabis Packaging Market 2023-2027

The North America cannabis packaging market size is forecast to increase by USD 2.67 billion., at a CAGR of 25.96% between 2022 and 2027. The market's growth hinges on various factors, notably the legalization of Cannabis in North America. Additionally, the rising popularity of CBD products and the effective branding and differentiation strategies employed by market companies play significant roles. As more regions embrace Cannabis legality, coupled with the growing consumer demand for CBD items, and the strategic marketing approaches implemented by industry players, the market experiences a notable surge in growth and expansion.

What will be the size of the Market

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Market Segmentation

This market report extensively covers the market forecast and trends, segmentation by material (glass, metal, plastics, and cardboard containers) and type (rigid packaging and flexible packaging). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics and Customer Landscape

The market is being driven by the growing legalization of cannabis for both medicinal and recreational use. As the industry expands, there is a rising demand for innovative packaging solutions to cater to various cannabis products such as tinctures, flowers, oils, patches, and pills. Health benefits associated with cannabis, including pain relief and seizure control, further fuel market growth. However, challenges such as regulatory compliance and the need for sustainable packaging options present hurdles for manufacturers in meeting consumer demands while adhering to legal requirements. 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

Legalization of Cannabis in North America is the key factor driving the growth of the market. One of the essential drivers of the market is the demand for children's packaging. Many of the regulations surrounding legalization emphasize the importance of keeping marijuana products out of the reach of minors and children. As a result, manufacturers must develop innovative cannabis packaging solutions that are child-resistant, while remaining visually and functionally appealing.

Additionally, the growing focus on sustainable and eco-friendly packaging options is another driving force driving the market. Consumers and businesses are looking for packing that is both useful and environmentally useful due to growing awareness of environmental issues. Therefore, the legalization of cannabis in North America will drive the growth of the market during the forecast period.

Significant Market Trends

The rising use of sustainable and eco-friendly packaging is the primary trend shaping the growth of the market. The market is increasingly focused on sustainability and environmental sustainability. As a result, such companies are looking for environmentally friendly alternatives to conventional packaging materials such as plastic and glass. Popular eco-friendly packing options include hemp-based packaging, biodegradable plastics, compostable packaging, and recycled materials.

Additionally, some companies are looking for advanced packing options to promote sustainability and reduce waste. Reusable or refillable containers, biodegradable blister packs, and compostable bags are some examples. Companies that prioritize environmentally friendly packing will gain a competitive advantage as consumers become more aware of sustainability. Therefore, the use of sustainable and eco-friendly packing will drive the growth of the market during the forecast period.

Major Market Challenge

The need for regulatory compliance in Cannabis packaging is a challenge that affects the growth of the market. To assure product safety and accurate labeling and prevent abuse as the cannabis industry is legalized and regulated in many different jurisdictions, strict laws and restrictions are in place with packing in North America. Child-resistant packing, restrictions on packing materials, labeling specifications, tamper-proof packing, product monitoring and traceability, and health and safety regulations are some of the regulations. 

Additionally, it can be difficult to navigate complex and ever-changing regulations because they can vary from state to state or province to province. To avoid legal consequences and reputational damage, cannabis businesses must invest in appropriate packing options and stay up to date with any regulatory changes. Therefore, the need to comply with packing regulations will hinder the growth of the market during the forecast period.

Customer Landscape

The market research report encompasses the entire market research and growth adoption cycle, ranging from the initial innovator phase to the subsequent laggard stage. It emphasizes adoption rates across various regions, determined by penetration levels. Additionally, the report outlines essential purchasing factors and factors influencing price sensitivity. This aids companies in assessing and formulating effective market growth and forecasting strategies.

Customer Landscape

Market Segmentation By Material and Type

The market is witnessing significant growth, driven by the expanding marijuana industry. Plastic packaging plays a crucial role in preserving and delivering various cannabis products, including tinctures, flowers, oils, patches, and pills. Containers, droppers, and caps are essential components for packaging these items securely. The industry encompasses factors such as medicinal cannabis and recreational cannabis, covering cultivation, processing, distribution, and retail. Ancillary services support the market, catering to the diverse needs of consumers. With the legalization of cannabis for both recreational and medical use, the demand for innovative and compliant packing solutions has surged. Moreover, increasing awareness of the health benefits of cannabis, such as lung capacity enhancement, diabetes regulation, weight loss assistance, and pain relief, is fueling market growth.

Market Analysis by Material 

The glass segment is estimated to witness significant growth during the forecast period. The use of glass containers for storing and packaging cannabis products is known as the glass packaging segment in the market. Glass packaging's ability to maintain the quality and freshness of cannabis products is one of its main advantages. The glass container is waterproof, which ensures that the product retains its original properties and does not allow aroma and flavor to escape or contaminants to enter.

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The glass segment was the largest segment and was valued at USD 132.03 million in 2017.  Glass packaging is considered a sustainable alternative in addition to its functional qualities. Compared to single-use packaging, it has a more subordinate environmental impact because it is fully recyclable and can be used multiple times. Additionally, the adoption and popularity of glass containers are expected to continue to increase in the market due to the growing customer desire for premium, user-friendly packaging. Environmentally friendly and aesthetically pleasing will promote market growth during the forecast period

Market Analysis by Type

In the market, rigid packaging refers to packaging options made of sturdy, rigid materials such as glass, plastic, or metal. Typically, cannabis products are packaged in these materials to protect and maintain their quality over time. Additionally, the creation of unique packaging solutions that meet customer preferences as well as regulatory requirements is driven by innovations in materials, design, and functionality. The rigid packaging segment is expected to play a key role in ensuring the safety, integrity, and appeal of products as the cannabis industry continues to grow, which in turn, will drive the growth of the market during the forecast period.

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 solutions such as bags and bulk bags, bottles and vials, and films and laminates.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

Cannabis Promotions, Cannaline, CannaPack Solutions Inc., Diamond Packaging, Dymapak Quark Distribution Inc., Elevate Packaging Inc., Green Rush Packaging, Greenlane Holdings Inc., Grow Cargo, KacePack, Kaya Packaging, Kynd Packaging LLC, MMC Depot, N2 Packaging Systems LLC, Parker Hannifin Corp., Sana Packaging, Smokus Focus, Stink Sack, and IMPAK Corp.

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 forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Material Outlook
  • Glass
  • Metal
  • Plastics
  • Cardboard containers

• Type Outlook 
  • Rigid packaging
  • Flexible packaging

Market Analyst Overveiw 

The market, particularly in North America, is witnessing substantial growth driven by factors such as rising demand for marijuana products. High-density polyethylene (HDPE), low-density polyethylene (LDPE), polypropylene (PP), and polyethylene terephthalate (PET) are commonly used materials in cannabis packaging, with companies like Hippo Packaging offering innovative solutions such as flexible pouches. Cannabis-derived products are increasingly recognized for their medicinal benefits in treating chronic pain, depression, PTSD, and social anxiety, among other conditions. Regulatory bodies like the National Institutes of Health are studying the plant's medicinal properties, influencing societal attitudes and economic impacts. Moreover, technological advancements in cultivation and processing technologies are driving diversification in the market. Sustainable packaging solutions, including biodegradable and eco-friendly materials, are gaining traction due to environmental concerns, reflecting a shift towards more responsible practices in the industry.

Further, the market is experiencing significant growth, driven by various factors. Companies like the marijuana business daily are playing a crucial role in shaping industry trends. Cannabis products, known for their anti-cancer properties and efficacy as a pain reliever, are gaining popularity for their ability to alleviate symptoms such as anxiety, insomnia, muscle stiffness, and nausea induced by chemotherapy. The economic impact of the industry is notable, with rising demand prompting innovation in packaging solutions. Regulation and prevention of diseases like diabetes are also influencing product development. Moreover, the market is witnessing a shift towards biodegradable and eco-friendly packaging materials to address environmental concerns. Epidiolex (cannabidiol CBD), a pharmaceutical derived from cannabis, is further driving market growth due to its therapeutic properties.

Market Scope
Report Coverage	Details
Page number	138
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 25.96%
Market growth 2023-2027	USD 2.67 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	25.33
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Berry Global Inc., Cannabis Promotions, Cannaline, CannaPack Solutions Inc., Diamond Packaging, Dymapak Quark Distribution Inc., Elevate Packaging Inc., Green Rush Packaging, Greenlane Holdings Inc., Grow Cargo, KacePack, Kaya Packaging, Kynd Packaging LLC, MMC Depot, N2 Packaging Systems LLC, Parker Hannifin Corp., Sana Packaging, Smokus Focus, Stink Sack, and IMPAK Corp.
Market dynamics	Parent market growth analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, 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 growth of the market between 2023 and 2027
• Precise estimation of the market  size and its contribution of the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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