When it comes to the packaging industry, it pays to look toward the future – and prepare for tomorrows’ trends today. In this blog from TGW International, we’ll look at forecasted future demand for packaging in the cannabis and tobacco industries.
Demand For Cannabis & Tobacco Packaging Is On The Rise
Thanks to continued statewide legalization of recreational marijuana, the cannabis packaging industry is on the rise, and is forecasted to grow from $278 million in 2019 to $1.1 billion in 2024, a growth rate of more than 31% year-over-year.
The tobacco packaging industry is growing at a CAGR of just 3.2%, but has a higher overall market value of $16.19 billion in 2019, which will reach $19.59 billion by 2026.
Partially, this rise is thought to be due to the rise in vaping and e-cigarettes. About 15% of adults have tried an e-cigarette or vape, and about 3% of adults use these products regularly. In comparison, about 14% of US adults smoke cigarettes.
Innovations In The Cannabis Packaging Market
Tobacco packaging is mostly standardized, since manufacturers are required to follow a large number of legal restrictions on how they can advertise, market, and label their products.
But cannabis packaging is less restrictive, which has led to a lot of innovations and trends in the industry. Standing pouches, for example, are very popular for cannabis “flower.” These flexible plastic packages provide lots of visual appeal and allow for unique graphics and custom images, which helps brands differentiate themselves from the competition.
In addition, standing pouches help prevent tampering with products, ensure minimal contact with oxygen and light, and help protect the aroma and freshness of cannabis products, which is very important for cannabis consumers. They’re also resealable, increasing convenience.
As cannabis continues to be legalized throughout the United States, this market sector will only continue to grow – and if it’s ever legalized on a federal level, there will be major opportunities for packaging manufacturers to take advantage of the explosive growth of cannabis sales and consumption.
Need Machine Knives For Tobacco & Cannabis Packaging? Contact TGW Today!
High quality machine knives are essential for creating the highest quality tobacco products, as well as tobacco and cannabis packaging. At TGW International, we offer carbide slitter blades, cutoff knives, packaging knives, and so much more.
With a wide variety of standard knives, as well as custom knives available, we can provide you with the tools you need to take advantage of growth in the tobacco and cannabis industries. Contact us today to get started.