GVR Report cover U.S. Cannabis Packaging Market Size, Share & Trends Report

U.S. Cannabis Packaging Market Size, Share & Trends Analysis Report By Material (Plastic, Paper), By Product (Bottles & Jars, Blisters & Clamshells), By Application (Recreational, Medical), And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68039-985-9
  • Number of Pages: 95
  • Format: Electronic (PDF)

Report Overview

The U.S. cannabis packaging market size was valued at USD 842.7 million in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 30.6% from 2022 to 2030. The market is witnessing significant growth owing to the increasing legalization of cannabis usage in U.S. states. The recreational use of cannabis is also gaining a green signal from the states, which is further supporting the market growth. The major revenue-driven states of the country include California, Colorado, Michigan, Florida, Washington, Nevada, Oregon, Arizona, Massachusetts, and Illinois. These are considered mature markets of the country, which have legalized the use of cannabis in the medical industry due to its health benefits.

U.S. cannabis packaging market size, by material, 2020 - 2030 (USD Million)

However, some of them are into the legalization process for recreational use but are projected to acquire legal permission soon in the estimated timeframe. Moreover, other states are also encouraging the medical use of cannabis, such as Alaska, Arkansas, Connecticut, Hawaii, Louisiana, Maryland, Minnesota, Montana, Rhode Island, Utah, and Vermont, with the established medical cannabis programs. It is one of the fastest-growing markets on account of the increasing demand for cannabis among consumers due to its several health benefits, such as if offers relief from chronic pain, improves lung capacity, helps lose weight, regulates& prevents diabetes, fights cancer, helps treat depression, and regulates seizures.

Thus, its packaging market is simultaneously gaining growth in the country. The aforementioned health benefits of cannabis are supporting its demand among consumers and more people are supporting its legalization in the country at least for medical usage. Thus, continuously rising awareness among consumers is projected to support the product demand, boosting its packaging market growth over the forecast period. The recreational usage of cannabis is also experiencing growth along with governmental support by allowing the legal sales of recreational cannabis products in the market. Thus, increasing sales of these products for adult use are also driving the need associated with the packaging that can prevent direct child contact.

Thus, the demand for child resistance solutions is also increasing in the market. According to a survey jointly conducted by the Council on Responsible Cannabis Regulation (CRCR) and the National Cannabis Industry Association (NCIA) in 2015, out of the total respondents, 58% supported mandatory child-resistant solutions for cannabis flower, 75% supported for concentrates, and 57% supported for non-ingestible infused products. The COVID-19 pandemic has disrupted the growth and working of most of the industries in the country due to several restrictions to prevent the spread of the virus.

However, the cannabis market has experienced a major boost in the year 2020 due to the rise in demand for recreational cannabis products, thus the demand for packaging has increased during the period. The stay-at-home orders have spiked the demand because the people were unsure when they will be able to get out of home and reach the dispensaries thus they purchased in stocks, which have boosted the sales in the country. In addition, rising product consumption to get relief from or deal with the mental conditions evolved from the loss of people or income sources has also boosted the market growth during the pandemic.

Material Insights

The plastics segment dominated the market and accounted for the largest revenue share of 52.7% in 2021 and the segment is also projected to maintain its dominance throughout the forecast period. The benefits associated with the use of plastic, such as cost-effectiveness compared to the other materials, ease in molding & other operations due to its flexibility, and ability of plastic-based solutions to survive extreme environments while protecting the contents from moisture, oxygen, dust, light, and odors, will drive its demand. The available cannabis packaging products made using plastic materials include bottles and jars, pouches, blisters and clamshells, caps, lids, vials, containers, and dropper pipettes among others.

Continuous efforts by the manufacturers for more advanced and effective packaging solutions are supporting the market growth. Some of the widely accepted plastic material types across the market include High-density Polyethylene (HDPE), Low-density Polyethylene (LDPE), Polypropylene (PP), and Polyethylene Terephthalate (PET). However, the rising concerns associated with the devastating effects of plastic on the environment are likely to challenge the segment growth to an extent over the forecast period. The increasing amount of plastic waste is a major concern in the U.S.

Thus, to sort this evolving issue, the U.S. government, non-profit organizations, and other organizations are spreading awareness through strict regulations or programs among the manufacturers and end-users of the plastic packaging industry about the sustainable packaging solutions that can limit plastic waste. As a result of this, cannabis packaging providers are coming up with new-era solutions for a sustainable future. For instance, Elevate Packaging is providing custom eco-friendly and compostable packaging for products like vapes, organic edibles, or natural oils, among others.

Such kinds of sustainable packaging solutions are projected to support market growth. The paper segment is projected to exhibit the fastest CAGR from 2022 to 2030. The rising awareness coupled with the increasing demand for paper packaging solutions in the market is supporting the segment growth. In addition, the development of packaging solutions like kraft paper pouches by Elevate Packaging is supporting the segment growth.

Product Insights

The bottles & jars segment dominated the market with a revenue share of 46.3% in 2021 and the segment is projected to maintain its dominance throughout the forecast period. The availability of a wide range of products in this segment with a variety of sizes, shapes, quality, and transparency is supporting the segment's growth. The benefits associated with glass jar packaging are driving the market growth. The glass packaging is transparent, sustainable, inert, and 100% or infinitely recyclable, reusable, and refillable. In addition, the glass packaging provides excellent moisture and gas barrier to the packaged product. For instance, Marijuana Packaging provides clear 1.7oz Straight-Sided Glass Jars with style and security for flower or edibles packaging.

The glass used in the jars is crafted from high-grade, hygienic glass and is available with airtight caps. It’s a complete odor-resistant and moisture-resistant storage solution. The bottles are commonly used for cannabis extract like oil packaging. It is also available in a variety of sizes, shapes, colors, quality, and transparency levels. The increasing demand for CBD oil is the major factor bolstering the demand for bottles in the market. CBD oil offers several benefits, such as it helps treat pain & some mental health disorders, reducing some cancer-related symptoms & side effects related to cancer treatment (such as nausea, vomiting, and pain), possesses neuroprotective properties, and is also beneficial in heart and circulatory system. These factors boost the consumption of CBD oil and simultaneously support the demand for bottles in the market.

Application Insights

The recreational application segment is projected to experience the fastest CAGR of 34.8% over the forecast period. The U.S. government has started the legalization of the product for recreational usage, which has bolstered the demand for cannabis packaging for recreational purposes. The recreational use of cannabis is the legalization of cannabis products for personal enjoyment instead of health purpose for adult use. In terms of recreational usage, cannabis packaging is applied for dry forms of marijuana, a shredded green and brown mix of flowers, leave, stems, and seeds.

U.S. cannabis packaging market share, by application, 2021 (%)

The medical use segment emerged as the dominant application in the historic period from 2017 to 2019. The early legalization of cannabis for medical usage in major U.S. states like California, Colorado, Florida, and Washington was supporting the dominance. In 2018, the U.S. Food and Drug Administration (FDA) approved cannabidiol Epidiolex for treating seizures associated with two rare and severe forms of epilepsy, Lennox-Gastaut syndrome, and Dravet syndrome. It has also approved two cannabinoid medicines including dronabinol (Marinol, Syndros) and nabilone (Cesamet) to help relieve side effects of chemotherapy, such as nausea and vomiting.

Key Companies & Market Share Insights

The companies are working on their product offerings to appeal to the target audience respective to the specific applications. The packaging manufacturers are offering customization as per the client requirement associated with the quantity and design of the final solution. In addition, the growing marketing strategies are further bolstering the need for the printing and labeling of packaged products on the packaging, thus the players are also offering customized printing services to their customers. For instance, KushCo Holdings, Inc. offers custom branded packaging with a variety of quality packaging options, such as glass jars, barrier bags, and others.

The team also helps customers in logo designing, which makes it stand out from the competitors in the market. Child-resistant packaging is another booming packaging solution among the players where they are designing solutions that are compatible for consumers with chances of close contact with children. For instance, Embark by Berry Global is a research-driven solution for the child-resistant packaging suitable for flower and prerolls among others. The product line has around 29 active patents.  Some of the prominent players in the U.S. cannabis packaging market include:

  • Berry Global Inc.

  • KushCo Holdings Inc.

  • J.L. CLARK

  • IMPAK Corp.

  • Pollen Gear

  • Cannaline Cannabis Packaging Solutions

  • N2 Packaging Systems, LLC

  • Green Rush Packaging

  • Norkol Packaging LLC

  • MMC DEPOT

U.S. Cannabis Packaging Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 1,065.8 million

Revenue forecast in 2030

USD 9.3 billion

Growth rate

CAGR of 30.6% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Material, product, application

Country scope

The U.S.

Key companies profiled

Berry Global Inc.; KushCo Holdings Inc.; J.L. CLARK; IMPAK Corporation; Pollen Gear; Cannaline Cannabis Packaging Solutions; N2 Packaging Systems, LLC; Green Rush Packaging; Norkol Packaging LLC; MMC DEPOT

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. cannabis packaging market report on the basis of material, product, and application:

  • Material Outlook (Revenue, USD Million, 2017 - 2030)

    • Plastic

    • Metal

    • Glass

    • Paper

  • Product Outlook (Revenue, USD Million, 2017 - 2030)

    • Bottles & Jars

    • Tubes

    • Tins

    • Pouches

    • Blisters & clamshells

    • Others

  • Application Outlook (Revenue, USD Million, 2017 - 2030)

    • Recreational Use

    • Medical Use

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