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Freedonia Market Research Press Releases Cannabis Packaging Demand to Grow 31% Annually

Cannabis Packaging Demand to Grow 31% Annually

by Corinne Gangloff

October 17, 2019

Demand for cannabis product packaging is anticipated to reach $278 million in 2019, increasing 31% per year to $1.1 billion in 2024. Primary and secondary containers (e.g., jars, bottles, folding cartons) will continue to account for the largest share of packaging demand at 62% of sales in 2024. These containers account for the bulk of unit packaging costs, as they must meet government regulations while also offering aesthetic and performance advantages. These and other trends are presented in Cannabis Packaging Opportunities from the Freedonia Group.

See the study page here: https://www.freedoniagroup.com/industry-study/cannabis-packaging-opportunities-3773.htm

Demand for containers used to package cannabis products is expected to increase 34% annually from $156 million in 2019 to $670 million in 2024. All container types are anticipated to see extremely fast growth along with expansion in the marijuana and hemp industries:

  • Jars and bottles – which together will account for 62% of sales gains – are versatile and see widespread use across nearly all cannabis delivery formats (e.g., flower, edibles, topicals).
  • Folding cartons and bags and pouches are expected to post very strong increases due to rapid gains in the popularity of edibles.

Packaging suppliers will remain competitive by offering containers that can support product differentiation – such as high-quality graphics and a premium image. Such containers include glass bottles and vials, metal tins, and niche packaging types such as cloth bags.

Contact Corinne Gangloff for an interview with the analyst.

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