PMMI: U.S. cannabis industry continues growth

As more states legalize medical marijuana, the U.S. cannabis industry has grown more than 200% in the past five years, topping $7.3 billion according to Here to Stay or Up in Smoke: A Look at the U.S. Cannabis Market , a white paper and accompanying infographic.

Produced by PMMI, The Association for Packaging and Processing Technologies, the research notes marijuana is legalized at some level in 30 states and is pending further legalization in 14 others. This growth, along with an influx of business startups, has helped legitimize marijuana use in the eyes of many.

By the year 2020, the cannabis industry is expected to reach $24.5 billion, with $11.2 billion for recreational products and $13.3 billion for medical products. While 95% of customers preferred cannabis flowers in 2016, by 2018 only 55% of customers prefer cannabis flowers, instead favoring concentrated, processed cannabis formats.

According to PMMI, the inconsistent legal status between state and federal laws is an obvious challenge facing cannabis manufacturers. Other challenges include separate RFID tags for the plant and packaged product, the resistance of financial institutions to work with cannabis companies, and strict FDA regulations.

Packaging for cannabis products is highly regulated with requirements for child-resistant and resealable lids, tamper evidence and opacity. Formats also vary for the different forms of cannabis, with cannabis flower in glass jars and tubes, concentrates in heatproof, borosilicate, glass or polystyrene containers, and edibles in resealable smell-proof bags.

PMMI reports that cannabis manufacturers are actively looking for equipment and technology to aid them in implementing new processes, particularly automation. According to PMMI, many opportunities exist to form relationships with these manufacturers – especially for OEMs offering technical guidance who are willing to take on a bit of risk.

For a deep dive into these findings, download the white paper and infographic online.

Packaging industry professionals can find the latest solutions at Pack Expo International and co-located Healthcare Packaging Expo (Oct. 14–17, 2018; McCormick Place, Chicago). To register and learn more, visit packexpointernational.com.