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Contract Packaging Potential in the Cannabis Industry

While contract packaging in the cannabis industry has been slow to develop, there is room for packaging specialists who can guide and manage the vast and ever-changing landscape of cannabis packaging.

Contract Packaging Potential in the Cannabis Industry
Contract Packaging Potential in the Cannabis Industry

According to PMMI Business Intelligence’s new white paper, “Cannabis Market Update: Unique Packaging Challenges for THC and CBD Products,” there is currently no standard business model in place for cannabis contract services, but as the industry continues to mature, larger cannabis companies are gaining the capacity and knowledge to offer contract services.

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.

Labeling, one of the early applications to be contracted out, has complicated requirements in both Canada and the U.S., requiring special attention to the composition, content, and placement of labels. Companies with experience and expertise have contracted out labeling services, freeing up labor and capital in the operations of smaller producers who take advantage of their service.

There are other companies who are beginning to specialize in contract packaging services for the cannabis industry. Most focus on flower and concentrates, but others are branching into edibles and dry goods such as tea. “We use third party packaging suppliers that do manual packaging using plastic and glass jars,” said one Director of Operations at a Medical and Recreational Cannabis Company.

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Because of the legalities of cannabis commerce between the U.S. and Canada, and across state lines within the U.S., contract packaging in the industry has been slow to develop. This should change as regulations relax and the market matures, and there is room for cannabis packaging specialists to offer contract packaging solutions to an industry with ever-changing regulations, product formats and packaging formulations – an expensive operation for producers to navigate.

Source: PMMI Business Intelligence “Cannabis Market Update: Unique Packaging Challenges for THC and CBD Products

Also see: Cannabis Product Packaging Set to Grow 31% Per Year to 2024 by Anne Marie Mohan

Download the FREE White Paper below.

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