Cannabis Packaging Market to Boost at 22.74% CAGR Till 2034

Cannabis Packaging Market Size, Share, Industry Insight

The global cannabis packaging market size reached USD 2.32 billion in 2023 and is projected to hit around USD 22.10 billion by 2034, expanding at a CAGR of 22.74% during the forecast period from 2024 to 2034.

Unlock Infinite Advantages: Subscribe to Annual Membership

Stricter regulations around child-resistant and tamper-evident packaging are pushing companies to invest in secure and complaint packaging solutions. The key players operating in the market are focused on adopting inorganic growth strategies like merger to develop advance technology for manufacturing cannabis packaging which is estimated to drive the global cannabis packaging market over the forecast period.

Major Key Insights of the Cannabis Packaging Market

• North America dominated the cannabis packaging market in 2023.
• Asia Pacific is expected to grow at a significant rate in the market during the forecast period.
• By packaging type, the rigid segment dominated the market with the largest share in 2023.
• By material type, plastic segment is expected to grow at significant rate during the forecast period.
• By product type, bottles & jars segment accounted for a considerable share of the cannabis packaging market in 2023.
• By application type, the recreational use segment dominated the cannabis packaging market in 2023.

Cannabis Packaging Market: Preserving Product Quality

Cannabis packaging is a specialized category of the packaging industry engineered to meet the unique demands of cannabis products, which include ensuring compliance with preserving product quality, legal regulations, and providing consumer information. The packaging for cannabis products must address both the practical aspects of preservation and the legal requirements for safety and labeling. Cannabis packaging must adhere to strict regulations that vary by region. These regulations typically cover child-resistance, tamper-evidence, labeling, and dosage information.

The packaging often needs to be opaque to prevent the degradation of cannabinoids and to ensure privacy. Given the potential risks to children, cannabis packaging often includes mechanisms to prevent easy access. This may involve complex opening mechanisms or special closures that are difficult for children to open but accessible to adults. The global packaging market size is estimated to grow from USD 1.20 trillion in 2022 to reach an estimated USD 1.58 trillion by 2032, growing at a 3.16% CAGR between 2023 and 2032.

Cannabis packaging must include features that indicate if a product has been tampered with. This could be in the form of seals, shrink bands, or breakable tabs. Packaging materials must protect the cannabis product from external elements such as light, moisture, and air. The process of cannabis packaging starts with designing the packaging, taking into account regulatory requirements, branding, and functionality.

5 Key Factors Driving Cannabis Packaging Market Growth

• The key players operating in the market are focused on geographic expansion and launching their brand in other countries which is expected to drive the growth of the cannabis packaging market in the near future.
• Increasing focus on cost reduction and production efficiency can drive the specialty market growth further.
• Emerging markets and trends for cannabis packaging s is expected to drive the growth of the global cannabis packaging market over the forecast period.
• Increasing regulatory support is estimated to drive the growth of the market over the forecast period.
• Increasing adoption of the advanced technology for the production of cannabis packaging is estimated to drive the growth of the global cannabis packaging market in the near future.
• Growing consumer demand for environmentally friendly packaging is driving the adoption of sustainable materials and practices in cannabis packaging.

How Can AI Improve the Cannabis Packaging Industry?

AI-powered systems can enhance quality control by using machine learning to detect defects, ensure consistency, and monitor packaging integrity, reducing waste and improving product reliability. AI can optimize supply chain management by predicting demand, managing inventory levels, and streamlining logistics, leading to cost savings and improved efficiency. AI can analyze consumer preferences and purchasing behaviour to create personalized packaging solutions and tailor marketing strategies, enhancing customer engagement.

AI can predict equipment failures and maintenance needs in packaging machinery, minimizing downtime and improving overall operational efficiency. AI can help ensure compliance with regulatory requirements by monitoring packaging practices and flagging any deviations, thus reducing the risk of non-compliance. AI can enable smart packaging solutions, such as integrating sensors and QR codes that provide real-time information about the product’s condition, origin, and usage instructions. By leveraging AI, the cannabis packaging industry can achieve higher efficiency, better compliance, and more personalized consumer experiences.

Driver

Rising Demand Due to Medical Benefits of Cannabis

Growing evidence supporting cannabis's medical benefits has increased demand for therapeutic products. Societal perceptions of cannabis have become more positive, reducing stigma and encouraging consumer interest. Many regions are increasingly legalizing cannabis for medical and recreational use, which expands market access and opportunities. The development of new cannabis products and delivery methods attracts a wider range of consumers. As the industry grows, it creates jobs and economic benefits, which further stimulates market expansion.

Cannabis reduces tenseness in the muscles, anxiety, and insomnia. The World Health Organization states that consuming cannabinoids has shown therapeutic effects against nausea and vomiting brought on by AIDS and cancer treatments. This information is helping to drive the growing use of cannabis in medical applications and bodes well for the future of cannabis packaging.

Restraint

Regulatory Challenges and Supply Chain Issues

The key players operating in the market are facing challenges in meeting the complex regulations across regions and supply chain logistics, which is observed to restrict the growth of the cannabis packaging market. Cannabis remains illegal in some jurisdictions, limiting market access and opportunities. High taxes and regulatory costs can drive up prices, making legal cannabis less competitive compared to illicit markets. The cost of specialized packaging, including child-resistant features and tamper-evident seals, can be high. This may limit market growth, particularly for smaller producers. The cannabis industry is highly fragmented, with numerous small players. This fragmentation can make it difficult for packaging companies to achieve economies of scale.

Opportunity

Legalization and Market Expansion

As more regions and countries legalize cannabis for medical and recreational use, there is an increased demand for cannabis products and, consequently, for specialized packaging solutions. The key players operating in the market are focused getting legalization, which is estimated to create lucrative growth opportunities for the expansion of the cannabis packaging market.

• In March, 2024, Governor Wes Moore, American politician, revealed that in the first full year after legalization of cannabis sale, retail sales for both medical and adult usage exceeded US$1.1 billion. The adult-use market accounted for more than US$67 million of the monthly retail sales in June, which exceeded US$95 million, according to the Maryland Cannabis Administration. Sales of cannabis for adult use have exceeded US$700 million, while sales for medical purposes have come close to US$400 million since the drug became legal for adult use on July 1, 2023.
• In March 2022, Canopy Growth Corporation, a diversified cannabis company, announced the victory of the German government's final approval for legalizing cannabis, as well as advancing a clear acceptance for enhanced medical cannabis usage.

New Development Policy Launch and Rising Funding and Investment activities

• The cannabis industry is expanding rapidly, driven by increasing legalization and consumer acceptance. This growth fuels demand for innovative packaging solutions.
• As the market matures, there is a growing emphasis on branding and sustainability. Investors are interested in packaging that enhances brand identity and meets eco-friendly standards.
• Efficient and scalable packaging solutions can reduce costs and improve supply chain logistics, making them attractive to investors looking for high returns.
• Overall, these factors combine to make the cannabis packaging market a promising area for investment and growth.

For instance,

• In September 2024, Key Investment Partners LLC, capital market company, revealed the introduction of a new cannabis credit offering, offering growth capital to cannabis businesses from a trusted source with true knowledge of the industry. Moreover, Key Investment Partners LLC company confirmed the completion of a senior credit arrangement with The Dispensary, an Illinois cannabis company looking to increase its retail presence and develop its artisan cultivation skills.

Contempo’s Trial on Innovating Sustainable Packaging

• In June 2024, Contempo, specialty packaging company, announced the launch of the innovative compostable packaging system, engineered to provide a sustainable solution for the legal cannabis sector. Two parts comprise up the biodegradable flower pod cannabis packaging system: a single-use, child-resistant pod made of biobased resin and a recyclable, resealable, child-resistant all-metal tin. The Biodegradable Products Institute (BPI) and DIN CERTCO have verified and certified the resin's compostability for both residential and commercial use.

Segment Insights

Rigid Packaging Lead Cannabis Packaging in 2023

The rigid segment registered its dominance over the global cannabis packaging market in 2023. Rigid packaging provides superior protection for cannabis products, safeguarding them from physical damage, contamination, and tampering. This is crucial for preserving the quality and potency of the product. Rigid containers help in maintaining the product's freshness and extending its shelf life by providing a more airtight seal, which is important for preventing moisture and air from degrading the cannabis.

Rigid packaging often meets regulatory requirements more effectively. Many jurisdictions have stringent packaging regulations for cannabis, including child-resistant features, which are more reliably incorporated into rigid containers. These packages are often easier for consumers to handle and use, with features like resealable lids or integrated storage options that enhance user experience. Overall, the combination of protection, regulatory compliance, extended shelf life, and branding potential makes rigid packaging a preferred choice in the cannabis industry. Increasing launch of cannabis products is rising the demand for the rigid cannabis packaging.

For instance,

• In April 2024, ButACake, a cake and confectionery manufacturing Figaro group of company, revealed the launch of a cannabis-infused peanut butter and jelly fudge brownie cake in New Jersey, US. As Cannabis was legalized in New Jersey in 2021, a cannabis-infused peanut butter and jelly fudge brownie is the first true food-based weed edible to get introduced in the dispensary shelves of New Jersey’s adult-use and medicinal marijuana markets.

Plastic Material to Hold a Notable Share in the Market

The plastic segment held the dominating share of the cannabis packaging market in 2023. Plastic provides effective barriers against moisture, oxygen, and UV light, which helps preserve the freshness, potency, and quality of cannabis by protecting it from environmental factors that could degrade the product. Many plastic packaging options can incorporate child-resistant mechanisms, which are often required for cannabis products to ensure safety. Plastic can be easily printed or labeled, allowing for effective branding and marketing while also providing essential product information. The players operating in the market are focused on launching plastic material cannabis packaging to meet the rising demand of consumers.

For instance,

• In February 2024, Sana Packaging, a company focused on providing sustainable cannabis packaging, an innovative pre-roll multipack made out of 750,000 pounds of ocean-bound plastic. The company recycled the ocean plastic waste and manufactured a new pre-roll multipack, with a child-resistant clamshell closure for packaging od cannabis.

Bottles & Jars Segment Projects to be Dominant

The bottles & jars segment is held the largest share of the global cannabis packaging market in 2023. Bottles and jars are user-friendly, allowing for easy opening, closing, and dispensing of the product. They often come with features like resealable lids, which help maintain the product’s freshness after initial use. Bottles and jars, especially when made from materials like glass or high-quality plastic, provide excellent protection against light, moisture, and air. This helps in preserving the freshness, potency, and overall quality of the cannabis product. Many bottles and jars are designed with child-resistant closures to comply with regulatory requirements, ensuring that the product is safely stored and inaccessible to children.

Jars and bottles can be designed with tamper-evident features, which help assure consumers that the product has not been compromised before purchase. Bottles and jars can be designed to meet various regulatory requirements, including those related to child resistance, tamper evidence, and accurate labeling. he suitability exhibited by bottles and jars to pack various forms of cannabis products, such as powder, gummies, and concentrates, is a major factor contributing to the segment's growth. The compatibility exhibited by bottles & jars to pack various different forms of cannabis products, such as concentrates, powder, and gummies, is a prime factor contributing to the segment's growth. Increasing launch of new cannabis products are rising the demand for bottes & jars for packaging purpose.

For instance,

• In July 2024, Grön, edible manufacturing company, unveiled the launch of the gummies that are soy-free, gluten-free, and infused with full-spectrum cannabis extract. The Grön company has launched the sugar-coated pearl cannabis extract gummies in eight different fruit flavours.

Recreational Use Segment to Show Significant Growth

The recreational use segment accounted for a considerable share of the cannabis packaging market in 2023. There is a growing cultural acceptance of cannabis, driven by changing societal attitudes and increasing awareness of its recreational benefits. Many regions and countries like Uruguay, Thailand Canada and Malta have legalized recreational cannabis use, creating a legal market that supports its widespread consumption.

This has led to increased availability and normalization of recreational use. Users often seek cannabis for its psychoactive effects, which can enhance social experiences, relaxation, and recreational activities. This appeal drives its popularity compared to medicinal use. The cannabis industry has effectively marketed recreational products, creating a diverse range of products and experiences tailored to consumer preferences, which boosts recreational use.

Furthermore, the recreational cannabis market has become a significant economic driver, contributing to tax revenues and job creation. This economic interest encourages the growth of recreational use.

For instance,

• In September 2024, Custom Cones USA, a company focused on manufacturing cannabis pre-rolls and packaging of cannabis, revealed that the company generated US$ 4.1 billion from the sales of cannabis pre-rolls for just over 18 months.

There is strong consumer demand for recreational cannabis products, fueled by curiosity, personal preferences, and the desire for novel experiences. These factors contribute to the dominance of recreational cannabis use, as it aligns with changing legal, social, and economic landscapes.

Regional Insights

Market Expansion: North America's Projection as a Leader

North America dominated the global cannabis packaging market in 2023. As cannabis legalization spreads across North America, particularly in the U.S. and Canada, there is an increasing need for compliant packaging that meets regulatory standards. The expanding range of cannabis products, including edibles, concentrates, and topicals, requires specialized packaging to ensure product safety, freshness, and convenience. Increasing launch of the new cannabis products in the North America market are rising the demand for the cannabis packaging in the North America.

For instance,

• In June 2024, Green Revolution One LED LLC, cannabis products manufacturing company, signed partnership agreement with the Berkshire Welco LLC/The Pass Berkshire, distributor and producer of cannabis in Massachusetts, U.S., to launch leading cannabis products in Massachusetts, U.S. for commercialization and expand its market presence.

Asia’s Medicinal Research Activities to Promote Growth

Asia Pacific region is projected to host the fastest-growing market in the coming years. The growing interest in cannabis for medical and recreational use in countries like Thailand and potentially in other regions is driving the demand for compliant packaging solutions. Investment in the cannabis sector is increasing in Asia Pacific, leading to the development of local cannabis markets and, consequently, a need for specialized packaging. Increased awareness about the benefits of cannabis and its acceptance for medical use in various countries like China, Japan, India and South Korea is expanding cannabis packaging market opportunities. Increasing research and development activities for developing drugs using cannabis for medical treatment, is estimated drive the growth of the cannabis packaging market in Asia Pacific.

For instance,

• In July 2023, Council of Scientific and Industrial Research–Indian Institute of Integrative Medicine (CSIR–IIIM), Research institute in Jammu, Jammu & Kashmir, reported that it is the first pioneer from India under Public Private Partnership (PPP) with a Canadian firm. The Council of Scientific and Industrial Research–Indian Institute of Integrative Medicine (CSIR–IIIM) is carrying out this project to search and develop medicine for treating diabetic pains, neuropathies, etc.

New Advancements in Cannabis Packaging Industry

• In June 2024, Grove Bags, a company that manufactures and produce U.S. made cannabis packaging powered using TerpLoc technology revealed the introduction of the ExIce, a sustainable and eco-friendly storage solution engineered to meet the challenges of preserving fresh frozen cannabis.
• In April, 2024, Pure Sunfarms Corp., a company focused on cannabis products based in Canada and wholly owned subsidiary of Village Farms International, Inc., unveiled the launch of the Hi-Def Pre-Rolls, with Tetrahydrocannabinol(THC) content between 36-44%. According to data published by the Pure Sunfarms Corp. company, in 2023, customer’s preferences shifted towards pre-rolls, capturing 31% of total sales (increasing 31% year-over-year). Pure Sunfarms currently sales two of the top most five selling non-infused pre-roll products (Pure Sunfarms’ Fraser Valley Weed Co – Big Red Pre-Rolls and Pink Kush).

Cannabis Packaging Market Key Players

• Greenlane Holdings, Inc.
• L. CLARK
• Kaya Packaging
• KacePack
• Cannaline Cannabis Packaging Solutions
• Dymapak
• Diamond Packaging
• N2 Packaging Systems LLC
• Green Rush Packaging
• Elevate Packaging
• Berry Global Inc.
• RXD Co.
• MMC Depot
• Norkol Packaging LLC (Grow Cargo)
• CurTec Nederland B.V.
• Impak Corp.
• Origin Pharma Packaging
• SANNER
• Guangdong Bowe Packaging Co., Ltd.
• Seidel GmbH & Co. KG
• Amcor Plc
• GPA Global

Cannabis Packaging Market Segments

Packaging Type

• Rigid
• Flexible
• Material Type
• Plastic
• Metal
• Glass
• Paper

Product Type

• Bottles & Jars
• Tubes
• Tins
• Pouches
• Blisters & Clamshells
• Others

Application Type

• Recreational Use
• Medical Use

Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa (MEA)
  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait