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OEMs Needed for $32 Billion Budding Cannabis Industry

Automated operations are the wave of the future in a growing industry that is expected to reach $32 billion globally by 2024, with a CAGR of 28%. Off the record, OEMs report cannabis companies get sticker shock!

Machine used to extract CBD from Cannabis plants
Machine used to extract CBD from Cannabis plants
Lauren DeCicca/Getty Images

PMMI Business Intelligence’s new white paper, “Cannabis Market Update: Unique Packaging Challenges for THC and CBD Products,” states that “every participating company interviewed for this white paper, whether they are growers, processors, or packagers, is looking toward a future of automated operations to meet demand.”


The cannabis industry is predicting growth in food and beverage, health and wellness, cosmetics, skin care & topicals, pet supplements and pharmaceuticals. Recreational growth is expected to quickly outpace medical, and the regulatory landscapes for both CBD and THC are expected to continue to become more relaxed, especially restrictions on retail CBD. As public support for the cannabis industry - particularly CBD use - continues to increase, it is expected that in the next decade some form of cannabis will be a part of many consumers’ daily routines, either as a functional ingredient in foods, beverages, and beauty products, or as a wellness mood enhancer in health.


With all of this growth and change, packaging has become a major concern for producers. There are specific regulations for labeling and packaging that producers must adhere to carefully, especially child-resistant packaging. The white paper says, “the market is primed for OEM players to partner with the cannabis industry to offer specialty machinery and forge industry-wide standards and practices.”

The majority of the cannabis industry still relies on manual labor for processing and packaging, yet also experience labor shortages. Producers and packagers struggle to maintain volume, and while there is interest in automating processes and acquiring more equipment, many industry players are not fully aware of the possibility and potential benefits of adding machines.

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