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​Ways that Legal Marijuana Will Change the CPG Industry

Jan. 25, 2022

Legal cannabis sales in the U.S. will reach $41 billion by 2025. With reported total sales of $12.2 billion in 2019, this is huge growth in the coming years. The legal cannabis industry is truly a market force to be reckoned with. As a result, we expect the following 4 things to happen in the CPG industry.

glass bottle with wood cover

A race to automation

When cannabis products were completely illegal, a small amount of packaging was done by hand. In the early days, legalization created a new supply chain and market, but cannabis companies still packaged their products largely by hand.

As legalization became more widespread, packaging regulations came along, including proper labeling and child-safe closures, making it more attractive to growing cannabis companies.

Whether consumers eat cannabis or because they eat cannabis, the demand for child-resistant packaging is expected to rise as legalization continues.

plastic packaging, white and black

The substitution effect

Cannabis is a strong competitor to packaged goods such as alcohol, nicotine and painkillers.

The pharmaceutical industry will also be severely impacted, especially traditional over-the-counter pain relief products. Manufacturers of alternative products face significant losses if they are not prepared to diversify. Visionary companies have seen the opportunity to increase their revenue streams by infusing cannabis or products adjacent to cannabis. KUSH offers packaging services for products such as cannabis flowers and teas. You are welcome to visit our website.

blue glass bottle

The Rise of Packagers

Contract packagers offer rental packaging services. If a business finds that it does not have the in-house capacity, expertise or resources to package its products, contracting with a packaging company is a popular and cost-effective option.

Contract packagers for cannabis foods have the potential to become as integral to their industry as co-packers have been to the CPG industry as a whole.

While contract packagers for cannabis products are not necessarily common, some companies offer specialized packaging services for flowers and concentrates

child resistant tin box pre-roll

Leading the way

Today's legal cannabis consumers need a product sophisticated enough to share with their social media followers in quality, safe packaging.

Cannabis foods in particular are leading the way, shifting to flexible stand-up pouches to provide a professional, small-batch look and convenience. Stand-up pouches are easily fitted with child-resistant closures, combining appearance, practicality and safety into one holistic package.

Based on success in the industrial flexible packaging, we expanded our business to cannabis packaging and have become a professional cannabis packaging Want to know more? 

Click here and contact us.


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