The global cannabis packaging equipment market is anticipated to accumulate a market value of US$ 1.4 billion in 2023 and is expected to garner a valuation of US$ 6.7 billion by exhibiting a CAGR of 16.9 % in the forecast period 2023 to 2033. The cannabis packaging equipment market reflected a growth of 12.2 % CAGR in the historical period 2018 to 2022.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value in 2023 | US$ 1.4 billion |
| Projected Market Value in 2033 | US$ 6.7 billion |
| Growth Rate (2023 to 2033) | 16.9 % CAGR |
The cannabis packaging equipment market is expected to reflect notable growth in the coming years, owing to the growing demand for medical and recreational cannabis products. The increasing legalization of cannabis in various countries will likely fuel the demand for cannabis packaging machines.
High-speed automated packaging, which is common in conventional food and beverage packaging operations, did not appear to be gentle enough in product handling to package delicate cannabis buds at the initial stage, but equipment manufacturers collaborated with cannabis companies to develop systems that could efficiently automate the sorting, weighing, and packaging process at a fast speed. As a result, automated procedures tailored to the needs of cannabis bud packaging are progressively being created, thereby creating demand for cannabis packaging equipment.
Besides this, to make the cannabis packaging child-resistant, tamper evident with a tearing element or pop-up indicator that indicates when a product has been opened, and resealable for multi-serving products, the packaging equipment is finding extensive use. Also, the packaging must be opaque (to conceal the contents) and should mention the amount of tetrahydrocannabinol (THC) and cannabidiol (CBD) per serving in milligrams. With their easily accessible and resealable features for customers, many products in North America have been witnessing a trend for adopting pouches and bags as packaging solutions.
As cannabis legalization gains momentum, these pouches will undoubtedly become more popular in the cannabis packaging industry. Getting the items into the pouches is only the initial step in the packaging process. It's equally important to take those pouches and pack them properly into secondary packaging and shipping cases for efficient distribution. For serving this purpose, cannabis packaging equipment’s widely utilized to offer child-proof and fast packaging solutions. This trend will boost the demand for these automated machines during the forthcoming period.
On the other hand, growing concerns about sustainability are also affecting packing choices which are indirectly driving product demand. Since the medical cannabis industry has adopted more colorful and premium bottle packaging, there is rising concern about the environmental impact of plastic bottles. Due to these concerns, many medical cannabis packaging manufacturers are on the lookout for environmentally friendly flexible pouches and bags. Folding cartons, pouches, and bags are anticipated to witness considerable expansion as the popularity of edibles grows.
Packaging suppliers will benefit from containers that offer product differentiation, like high-quality graphics and a premium appearance. Containers like glass bottles, vials, metal tins, and specialty packaging such as cloth bags are a few examples. For inculcating these features in the product packaging, automated packaging equipment is required which increases their market value and demand in the market. Apart from this, modifications in legal cannabis packaging and labeling requirements can act as a market restraint for cannabis packaging equipment. Upgrading machines with new technology and remaining compliant with packaging rules are two more difficulties that cannabis packaging equipment manufacturers face around the world.
Region-wise, North America is expected to dominate the market by commanding over 62% market share by end of the forecast period. This region is one of the major contributors to the worldwide cannabis industry. The growth is attributed to the increasing adoption and farming of cannabis in countries such as Canada and the United States.
The recent shift in the regulatory landscape has led to more people using medicinal cannabis to manage conditions like chronic pain, PTSD, depression, social anxiety, cancer, multiple sclerosis, and epilepsy, all linked to changing lifestyles. This is expected to increase the sales of cannabis packaging equipment in sync with rising sales of cannabis in this region.
In addition, due to these stringent laws, suppliers must comply with proper safety control methods and provide consumers with high-quality products. This purpose can be easily fulfilled by employing automated packaging equipment in the packaging process.
Likewise, the market in Europe is expected to reflect the fastest CAGR of 17.1% during the forecast period. The legalization of cannabis is accelerating in Europe with its growing use in the medical sector which is driving growth in the region. The European Court of Justice announced in November 2020 that CBD is not a narcotic substance under EU law, paving the way for future CBD markets. A few weeks later, the United Nations finally accepted cannabis' medical potential by removing the plant and its derivatives from Schedule IV of the Single Convention on Narcotic Drugs, with all European countries voting in favor except Hungary. This development is further expected to thrive growth in cannabis packaging equipment in the region.
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Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing cannabis packaging equipment are expected to create lucrative opportunities for market growth during the forecast period.
Traditionally, cannabis was hand-packed illicitly across the globe. The demand for cannabis packaging has improved due to the legality of cannabis in Canada, many of the USA states and also some countries in Europe. As a result, the cannabis packaging equipment market is growing at a soaring rate and is demonstrating enormous potential.
There have been several advancements in the cannabis equipment packaging market, like automation of the packaging process to improve productivity and efficiency to cope with the rising demand for cannabis across the world.
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According to The United Nations report published in 2020, cannabis was used by 192 million people worldwide in 2018, making it the most consumed substance globally. The number is anticipated to move in a positive direction due to increasing the number of consumers and suppliers entering the market. This rise in the demand and supply cycle of the product will fuel the growth of the cannabis packaging equipment market.
Cannabis usage is well-established in the pharmaceutical sector and is eyeing growth opportunities in sectors like health & wellness and other industrial sectors. The accelerating demand for cannabis in the market is constantly impelling the efficiency of cannabis packaging from the manufacturers.
Cannabis packaging equipment manufacturers are offering automatic machines to help packaging manufacturers with increased speed and productivity in cannabis packaging. Other factors like reducing wastage at the packaging stage and weighing solutions with greater accuracy are provided by cannabis packaging equipment manufacturers.
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Even though cannabis is now legal in many states of the USA, federal laws and FDA regulations may hamper the market growth for the same through changing restrictions and usage regulations. Frequently changing packaging and labelling laws regarding legal cannabis packaging can act as a market restrain for cannabis packaging equipment.
Updating machines with new technologies and adapting to packaging standards are few other challenges that cannabis packaging equipment manufacturers are facing all around the world.
Key players such as
are actively involved in manufacturing cannabis packaging equipment.
Major players in the cannabis packaging equipment market are focused on innovation because the sector is still at a burgeoning stage and promises upright growth in the future. The manufacturers of legal cannabis are demanding identifiable packaging and branding solutions to make their product stand out in the marketplace.
Many packaging equipment manufacturers are providing features like customization in shape, enhanced labels, a better quality of packaging materials and good sealing and locking properties in their packaging.
Cannabis packaging mainly serves two major purposes, one being the protection of the product packed inside and the other being branding of the product. Increasing consumption of cannabis in the form of chocolates, cannabis-infused butter and other health & wellness products is forcing packaging companies to increase and improve packaging productions.
This proves as a huge opportunity for cannabis packaging equipment manufacturers as they’re approaching the arcade with new, innovative and customized designs to establish dominance in the global market.
The increase in cannabis legalization in North America for its recreational as well as medical purposes has resulted in the region holding the largest market share in the global cannabis packaging equipment market.
The demand for cannabis packaging equipment market is comparatively higher in North America followed by Europe which is growing rapidly and showing massive potential due to the extensive use of cannabis in the region for medical purposes.
The COVID-19 pandemic has not spared the cannabis packaging equipment market. Before the pandemic, the market was demonstrating high growth which is suppressed due to the increased restrictions and lockdowns.
The cannabis packaging equipment market was hit majorly due to the pandemic as the product demand was decreased globally but it is expected to recover rapidly with the ease of restrictions around the globe.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis and Forecast, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis and Forecast
6.1. Equipment Type
6.2. Application
7. Global Market Analysis and Forecast, By Equipment Type
7.1. Automatic Equipment
7.2. SEMI-Automatic Equipment
8. Global Market Analysis and Forecast, By Application
8.1. Medical Use
8.2. Recreational Use
8.3. Others
9. Global Market Analysis and Forecast, By Region
9.1. North America
9.2. Latin America
9.3. Europe
9.4. South Asia
9.5. East Asia
9.6. Oceania
9.7. Middle East & Africa
10. North America Sales Analysis and Forecast, by Key Segments and Countries
11. Latin America Sales Analysis and Forecast, by Key Segments and Countries
12. Europe Sales Analysis and Forecast, by Key Segments and Countries
13. South Asia Sales Analysis and Forecast, by Key Segments and Countries
14. East Asia Sales Analysis and Forecast, by Key Segments and Countries
15. Oceania Sales Analysis and Forecast, by Key Segments and Countries
16. Middle East & Africa Sales Analysis and Forecast, by Key Segments and Countries
17. Sales Forecast by Equipment Type and Application for 30 Countries
18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
19. Company Profile
19.1. Cannabis Packaging Machinery
19.2. Dura-Pack
19.3. Paxiom
19.4. Canapa Solutions
19.5. ActionPac Scales and Automation
19.6. Ohlson Packaging, Inc.
19.7. All-Fill Inc.
19.8. Paxiom
19.9. Viking Masek Global Packaging
19.10. WeighPack Systems Inc.
19.11. Cannaline Cannabis Packaging Solution
19.12. Others
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Cannabis Packaging Equipment Market
