DUBLIN–(BUSINESS WIRE)–The “U.S. Cannabis Packaging Market Size, Share & Trends Analysis Report by Material (Plastic, Metal, Glass, Paper), by Product (Bottles & Jars, Tubes, Tins, Pouches, Blisters & Clamshells), by Application, and Segment Forecasts, 2020-2028” report has been added to ResearchAndMarkets.com’s offering.
The U.S. cannabis packaging market size is expected to reach USD 2.9 billion by 2028 and is expected to expand at a CAGR of 30.3% from 2020 to 2028
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.
With the growing popularity of vaping devices, teens have started vaping THC and nearly 4.0% of 12th graders respond they vape THC on a 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.
The growing support of U.S. citizens concerning the use of medical cannabis will also fuel the market development during the coming years. The increasing legalization of recreational use of cannabis is expected to drive the market in the coming years.
Increasing legal availability of legal cannabis packaging for recreational uses in U.S. states include 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. Additionally, 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. For instance, 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 products size because 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 may be so the packaging products differ as per the legalized sales in 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.
Additionally, the expanding legalization of retail sales of cannabis in U.S. states is a major factor driving the demand for packaging products in the U.S. market.
U.S. Cannabis Packaging Market Report Highlights
- On the basis of material, the plastic segment accounted for the highest market share of 54.3% in 2020 owing to its extensive consumption in packaging products like jars, pouches, vials, containers, and thermoformed blisters and clamshells. The extensive structural benefits and cost-effectiveness associated with plastic packaging are supporting segmental dominance
- The bottles and jars segment accounted for the highest revenue share of 46.6% in 2020 and is expected to maintain the leading position by 2028. The availability of bottles and jars in wide varieties inclusive of size, shape, and quality among others is supporting the segment dominance. The dried cannabis and cannabis extract is packaged in these bottles and jars and hold significant demand, which, in turn, is another factor supporting the significant share of the bottles and jars segment
- The recreational use of cannabis packaging is expected to expand at a significant CAGR of 35.1% during the forecast period. The increasing demand for cannabis products among the adult population of the country is primarily supporting the fastest growth of the application segment in the market. Additionally, the increasing legalization of cannabis for recreational usage in more states of the country is further supporting the segmental growth in the market
- Key players are increasingly focusing majorly on research and development activities, product development, and branding and marketing activities. Besides, manufacturers are also focusing on advanced manufacturing machinery, raw-material procurement, regulatory approvals, and certifications. The strict rules and regulations by the government on product selling and labeling is a factor projected to limit the growth to an extent over the forecast period
Company Profiles
- Berry Global Inc.
- KushCo Holdings Inc.
- J.L. CLARK
- IMPAK Corporation
- Pollen Gear
- Cannaline Cannabis Packaging Solutions
- N2 Packaging Systems, LLC
- Green Rush Packaging
- Norkol Packaging LLC (Grow Cargo)
- MMC DEPOT
U.S. Cannabis Packaging Market Variables, Trends & Scope
Market Lineage Outlook
Penetration & Growth Prospect Mapping
- Industry Value Chain Analysis
- Raw Material Trends
- Procurement Best Practices
- Manufacturing Trends
- Technology Trends
Regulatory Framework
Market Dynamics
- Market Driver Analysis
- Market Restraint Analysis
- Industry Challenges
Business Environment Analysis
Political Landscape
Market Strategies
Covid-19 Impact Analysis
For more information about this report visit https://www.researchandmarkets.com/r/g33frk
Be the first to comment