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U.S. Cannabis Packaging Market Size, Share & Trends Analysis Report By Material, By Product, By Application And Segment Forecasts, 2022 - 2030

U.S. Cannabis Packaging Market Size, Share & Trends Analysis Report By Material, By Product, By Application And Segment Forecasts, 2022 - 2030

  • March 2022
  • 95 pages
  • ID: 6246921
  • Format: PDF
  • Grand View Research


Table of Contents

U.S. Cannabis Packaging Market Size, Share & Trends Analysis Report By Material (Plastic, Paper), By Product (Bottles & Jars, Blisters & Clamshells), By Application (Recreational, Medical), And Segment Forecasts, 2022 - 2030

U.S. Cannabis Packaging Market Growth & Trends

The U.S. cannabis packaging market size is expected to reach USD 9.3 billion by 2030. The market is expected to expand at a CAGR of 30.6% over the forecast period. Cannabis is the most consumed drug other than alcohol and tobacco. According to the National Institute on Drug Abuse, more than 11.8 million young adults reported consumption of marijuana in 2018. The growing support of U.S. citizens for the use of medical cannabis will also fuel the market growth. With the rising popularity of vaping devices, teens have started vaping THC and nearly 4.0% of 12th graders respond they vape THC on daily basis.

These numbers are projected to increase in the future along with the legalization of marijuana for medical use or adult recreational use in U.S. states including Colorado, Washington, Alaska, Oregon, Washington, D.C., California, Maine, Massachusetts, Nevada, Michigan, Vermont, Guam, Illinois, Arizona, Montana, New Jersey, New York, Virginia, New Mexico, and Connecticut. The states have different rules and regulations for the use and possession of cannabis. For instance, in Colorado, retail purchases of cannabis at licensed dispensaries are subject to standard sales tax, plus an additional 10.0% marijuana sales tax. In addition, a 15.0% excise tax is applied to the wholesale price of retail marijuana, which is the price that businesses of Colorado pay to cultivators.

These rules and regulations vary as per the state governments in the U.S. In Washington, retail sales of cannabis at licensed dispensaries are subject to an excise tax of 37%. In California, there is a 15.0% excise tax and a standard state sales tax on retail sales of cannabis at licensed dispensaries. In Massachusetts, sales at licensed dispensaries are subject to standard state sales tax and a state excise tax of 10.7% as well as towns and cities can also impose up to a 3.0% tax on marijuana sales. The players are offering products as per the rules and regulations by the government for the possession and use of cannabis products.

These also decide the packaging product size as some markets have legal possession of cannabis for an adult up to 5 ounces, for instance, and some have permission for the possession of 10 ounces. Thus, the packaging differs as per the legalized sales in the U.S. states. The packaging manufacturers are effectively looking into it and developing products as per the state’s requirements. This is projected to support the growth of the market over the forecast timeframe. Furthermore, the growing legalization of retail sales of cannabis in the U.S. states is a major factor driving the demand for packaging solutions.

U.S. Cannabis Packaging Market Report Highlights
• On the basis of material, the plastic segment accounted for the highest market share in 2021 owing to extensive consumption of plastics in packaging products like jars, pouches, vials, containers, and thermoformed blisters and clamshells due to structural benefits and cost-effectiveness
• The bottles and jars segment accounted for the highest revenue share in 2021 and is expected to maintain the leading position throughout the forecast period. The availability of bottles and jars in wide varieties inclusive of size, shape, and quality among others is supporting the segment growth. The dried cannabis and cannabis extract is packaged in such bottles & jars
• The recreational use of cannabis packaging is expected to expand at a significant CAGR during the forecast period. The increasing demand for cannabis products among the adult population is primarily supporting the segment growth. In addition, the growing legalization of cannabis for recreational usage in more states of the country is driving the segment
• Key players are increasingly focusing on R&D activities, product development, and branding & marketing activities. Moreover, manufacturers are also focusing on advanced manufacturing machinery, raw material procurement, regulatory approvals, and certifications
• The strict rules and regulations by the governments on product selling and labeling is a factor projected to limit the market growth to an extent over the forecast period

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