It has been five years now since recreational cannabis started to become legal in a handful of Western states, and the packaging industry is still divided on pot. Early adopters jumped in and are helping to create top-shelf brands. Some packaging machines have been sold, mostly semi-automatic labelers and bag sealers and smaller form/fill/seal machines. A few sophisticated processing and packaging lines exist, mostly for medical marijuana. Other suppliers stand back waiting to see what is going to happen. Some staunchly refuse to get involved with cannabis, a Schedule 1 Drug, on principle. Others have created offshoot organizations to sell into the controversial market, shielding their involvement from their mainstream customers. And some, let’s not forget, have been selling into the “tea and spice” market for forty years or more.
Many pundits tout edibles as the big growth area, yet more parents and grandparents are being prosecuted for letting children gain access to sodas, candy, baked goods, etc. California has instituted tough regulations prohibiting any packaging resembling food or children’s packaging. California also has underperformed on projected sales and tax revenues in its first year of recreational cannabis, with many critics blaming the heavy regulatory environment.
Plus, reports persist of black markets, fake inspections, and counterfeit barcodes. Some states like Colorado seem to be getting it right. Oregon’s move to recreational has been a dismal failure so far, with three competing agencies responsible for confusion leading to overproduction, which has driven prices down. For all involved, continued changes in the regulatory landscape bring headaches to operations and prevent any real long-term planning.
