Legal Cannabis Needs ‘Greener’ Packaging to Nip Waste in the Bud

As the legal cannabis market grows rapidly nationwide, packaging is emerging as a key tool for brands to differentiate themselves. In fact, the market for cannabis packaging is increasing 28.8% a year across the United States. Packaging allows a product to stand out among intense competition, especially with more consumer demand for sustainability. It also helps customers understand exactly what they are getting, and ensures the health and safety requirements set out by government regulations in the growing number of jurisdictions where cannabis is legal. 

The legal cannabis market is growing nearly 14% a year. This is providing many new opportunities for retailers, but competition is also fierce. That means that successful retailers will need to stand out from the crowd, not just with their products and value, but also with their packaging. Often the first things consumers see, packaging can indeed influence purchase decisions. 

This influential role of packaging is especially relevant when it comes to the sustainability of packaging. With growing awareness of the plastic pollution crisis, consumers are increasingly seeking products with eco-friendly packaging. And, according to our research and other studies, most consumers are willing to pay more for sustainable packaging, with rates higher among younger consumers. 

This is a trend the cannabis industry should pay close attention to, as nearly 65% of all cannabis users in the US are Millennials and Gen-Z’ers. Meanwhile, plastic wrapping from cannabis products is only adding to the environmental crisis. Much of this packaging, and plastic packaging in general, cannot be effectively recycled. In fact, only 9% of all plastic produced globally is actually recycled. 

For cannabis companies, which often need to keep products clean, dry and fresh, compostable plastic offers a viable alternative to conventional single-use plastic. This innovative type of plastic has much of the same functionality of traditional plastic in terms of barrier, durability and sealability. However, at the end of its life, this plastic alternative breaks down into compost material that can be used in gardens and on agricultural fields, nourishing the earth, rather than polluting it.

The fact that compostable plastic can be printed with product information is also important. With cannabis retailers often selling hundreds of different products, the graphics and labeling on the packaging are essential for informing customer purchasing choices and abiding by the many varying location-based regulations on marketing and labeling.

Beyond meeting the needs for functionality, sustainability and consumer information, packaging for cannabis must meet legal requirements, including regulations that it be childproof, resealable, in opaque or tinted packaging, and tamper-resistant. Compostable plastic, which can close with zippers and contain other customized features, allows cannabis brands to meet these safety requirements while also providing the highest standard of freshness and protection from contamination.

In many industries, such as apparel, food, and shipping, demand for sustainable packaging is growing, with industry players responding. For cannabis producers and retailers, as well, sustainable packaging is becoming a more primary consideration. By switching to compostable plastic, cannabis companies can realize a huge commercial advantage – tapping into a market that is willing to pay more for products that match their ideals and principles related to sustainability. 

Already we’re seeing leading legal cannabis producers adopt compostable packaging as part of their sustainability pledges. This is a shift we can expect more cannabis companies to make, especially given that many of their customers are from a relatively young demographic that prioritizes sustainability. With many cannabis companies already motivated by factors like health and natural solutions, the adoption of compostable packaging is simply the next step for increasing sales and enhancing brand recognition.

Editor's note: Submit your commentary and opinion pieces to Editor-in-Chief Stefanie Valentic at [email protected].