Success in the Cannabis Packaging Market
by Chelsea McDougall, Senior Content Marketing Manager, S-One Labels & Packaging; TLMI TechCon- nect sub-committee co-chair. The legal cannabis market has exploded in recent years and has ushered in an entirely new range of ap- plications for label and packaging producers. Legal cannabis is already a big market, with 2020 U.S. sales projected to be $12.48 billion.As more U.S. states come online allowing adult use, and the federal gov- ernment toys with legalization, it is a market that’s only poised for more growth.And more growth means more brands looking for high-end labels and packaging. In 2020, adult use cannabis sales were projected to be $12.48 billion, and are expected to reach $30.47 billion by 2025, representing a 16 percent growth rate year over year, according to Prohibition Partners. While this emerging market provides plenty of label and packaging possibilities,make no mistake: this indus- try comes with its fair share of hurdles and headaches. Last year provided a lot of bright spots for cannabis brands as more states legalized some form of adult use, whether it was for medical or recreational purposes, and attitudes about cannabis use relaxed. Locked Down When the COVID-19 pandemic forced lock downs for much of the country, cannabis businesses were deemed essential, and allowed to remain open. With that, the adult use market soared. More people at home led to more consumers pur- chasing legal cannabis products to experiment, to treat anxiety, or to ease boredom. California alone reported a 156 percent sales growth at the start of the pandem- ic, according to a report by Prohibition Partners. In 2020, the United States also saw more states adopt legal cannabis laws, though cannabis is federally pro- hibited. Today, 15 states allow adult recreational use; 19 have medical laws on the books, and legislation is pending in Mississippi. Canada allows recreational adult use throughout the country, though it is highly regulated. Fast Acting The COVID-19 pandemic still very much dominates the federal agenda, and many observers predict that we won’t see major action on cannabis reform in 2021. “The states may act faster than the federal govern- ment, that is true, but that means it’ll continue to be a patchwork of different legal systems between the (Cont’d on Page 8)
6 August 16, 2021 Flexo Market News
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