Remember when the only way to acquire cannabis products was through purchasing on the black market? Pepperidge Farm remembers. But seriously, in most places in North America, long gone are the days when cannabis users have to resort to sketchy black or grey market deals. When it comes to cannabis and cannabis packaging, the market is now green – the color of money.

The US cannabis packaging market was valued at $842.7 million in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 30.6% from 2022 to 2030, according to Grandview Research. The firm says the market is witnessing significant growth, owing to the increasing legalization of cannabis usage in US states. As of today, the recreational use of cannabis has been legalized in 21 US states, Guam, the Northern Mariana Islands, and Washington DC, while a plethora of other states and US territories have decriminalized its use, perhaps paving the way for further legalization. Internationally, more dominos continue to fall. In North America, both Mexico and Canada have legalized cannabis nationwide. Many cannabis experts believe it’s only a matter of time until cannabis is legalized at the federal level.

Katrina Edwards, new business advisor and digital sales, Mark Andy, comments, “It’s been a rapidly growing market segment and will continue to keep growing rapidly as more states become legal with medical and recreational usage. And it’s not just flower and edibles anymore,” she says. “There are all sorts of products in foods, beverages, topicals, strips and more. Cannabis and CBD has really branched out into all sorts of products for consumers to buy – and in all types of packaging.”

The types of packaging for cannabis products are numerous and varied. Outside of the printing segment, demand is strong for glass and plastic jars and tubes in all shapes and sizes, as well as accompanying caps and closures, in addition to resealable and smell-proof bags. And within the printing and converting space, there’s tremendous demand.

“The state of the cannabis labeling market is incredibly strong,” states Donna Covannon, director, marketing, North America, Xeikon. “With more states legalizing medical as well as recreational cannabis, the market is exploding. More and more products adorn shelves of bespoke dispensaries opening the digital print-possible world for labels, folding cartons and flexible packaging.”

Demand is strong and on the upswing. “This is probably the fastest growing market in the label industry right now, with more potential to continue as cannabis becomes legalized throughout the US and world,” states Joel Ulrich, senior marketing manager, Spinnaker, a division of Mactac.

Sophistication and proliferation

Jennifer Dochstader is managing director of label and packaging industry research and marketing communications firm LPC, Inc.  In addition to her extensive work within the narrow web sector, she also consults with craft hemp farms and growers on their packaging strategies. She says, “The sophistication of printed packaging in the cannabis industry has expanded alongside the increase in recreational use of the product. When the first states legalized recreational use a decade ago, we didn’t see many complex labels on cannabis products. These labels contained a logo, regulatory information and a product description.

“Today we see far more complex labels and printed packaging in this space, including unique diecuts, the highest-definition graphics and special ink effects. With the proliferation of products on dispensary shelves, cannabis brands have had to up their game when it comes to producing enticing packaging for their products,” Dochstader says.

Kim Young, marketing communications specialist at Inland, also has taken note of the evolution in cannabis packaging. “Historically we saw a lot of simple or minimalistic designs within the cannabis industry, but as of late I would say we are starting to see the trend start veering to the other end of the spectrum with more playful and colorful designs that are popping off the shelves in contrast to the previous simple black or one-color label or pouch,” she says.

Ulrich has observed a trend in the cannabis market for specialized packaging for specific consumer generations. He explains, “While the younger consumer might enjoy flashy and eye-catching labels, the older generations tend to appreciate simplistic packaging, so they can clearly read the contents and details of the products.”

Mactac and Spinnaker offer a variety of specialty paper and film facestocks that are paired with specific adhesives for optimal performance on mandrel hold and chemical/oil resistance. “Our labelstocks can be used in a wide range of applications, including glass, pop-top and reversible cap vials, cartons, bags and pouches. More importantly, most of our products are offered on our Trimless and Precise programs that allow for smaller minimum order requirements, so the converter only has to order what they need as opposed to having to purchase an entire master role.”

According to Covannon, creativity is surging. “The cannabis market is similar in many ways to the wine industry. Large advertising budgets are not common, so brands rely on shelf appeal to grab consumers’ attention. The print providers taking on the cannabis label and packaging business are extending the boundaries of traditional designs, shapes and colors. They are really thinking about the target buying audience and providing labels and packaging that speak to them.

“It’s still all about shelf appeal – with a whole different shelf,” Covannon adds. “Additionally, varying and frequently changing regulations make digital printing an ideal fit for the cannabis market. The brand owners must have the ability to keep up with these changes, and digital printing gives them the ability to quickly pivot when changes happen.”

Covannon points out that within the cannabis packaging arena, while design choices vary, there are some non-negotiables. She states, “First and foremost, all cannabis goods are required to be in packaging that is: child-resistant – difficult for those under five years of age to open; tamper-evident – visible if the package has been opened; resealable – if the package has more than one serving; and opaque – if it is an edible cannabis product.

“It is essential that manufactured products are protected from contamination and exposure to any harmful substances,” she says. “Thus, all manufactured products must be packaged as a finished product prior to any transfer of the product to a distributor. Additionally, packaging cannot be appealing to children or imitate non-cannabis food products. With this said, often the format and design layout require a lot of content and information due to regulations, forcing the label on the product to have a multiple layer book-type label.

Mark Andy’s Edwards echoes the need to be nimble as a print and packaging provider. “There are a lot of different SKUs within the cannabis market for so many different growers/brands entering into the space. Also, government regulations change constantly, thus requiring labels and packaging needs to change to meet the shifting guidelines before being sold. Also, the need for variable data capabilities to show expiration dates and strain details is a must in the cannabis market.

“It’s not just labels that are used in cannabis packaging,” Edwards continues. “There are a lot of different types of packaging, including child resistant elements in a mylar bag, light cartons with all sorts of embossing and foil embellishments, and so many edgy, creative designs. Some consumers may find the luxe packaging more appealing, while others may be more interested in features such as child resistance. Certain brands may want to have a more luxe feel, while others may be more inclined to focus on minimalism, organic, healthy, bold, trendy, and even a sustainable look to the packaging. 

Digital, of course

Multiple SKUs, variable data, and oft-changing labeling requirements all point toward digital print technology being a huge boon to the cannabis industry. 

Mark Andy’s Edwards states, “It’s a perfect industry to take advantage of digital printing. Cannabis labels require all sorts of variable information, including lot numbers, strain percentages, barcodes, and expiration dates. Typically, most of the brands producing the products have smaller production capabilities and are only able to do smaller batches at a time, which is great for short runs. There is also a shorter shelf life for the products, so making more at a time – unless mass produced – makes more sense to run via a digital press. If you have a brand producing mass quantities for large distribution, they could run as flexo but would still need to either have a single print digital for the variable data printing (VDP) or would probably have to run the VDP information on a smaller printer and apply as a separate label.”

Covannon emphasizes the role digital printing has played in the tremendous growth seen in the cannabis labeling market.  “Having the ability to pivot quickly as regulations change has been imperative to the continued growth many of the leaders in this space have seen,” she says. “Digital will likely continue to have a profound impact on this market, as the benefits of digital align perfectly – short runs for varieties, small crops, test markets, prototypes and packaging design ideas. 

“Plus, the ability to easily add security features for track-and trace-functionality, adding variable information not just for personalization or customization but also for data sharing and gathering is another advantage. With smart label features, the end user can learn more about the crop grown, the specific benefits of the product and more, while the grower/brand can capture vital consumer information to help with future products and to provide required data to local government agencies,” says Covannon.

The recreational cannabis industry in particular is an ideal fit for digital presses, states LPC’s Dochstader. “The rate of new product launches and SKU proliferation is extremely high in this space and will only increase as the industry continues to evolve. In addition to THC and CBD, there are more than 100 other cannabinoids in the cannabis plant, and as extraction methodology advances, we will see new offerings featuring these chemical compounds as a single product or in combination with others. For example, today we mostly see THC and CBD-centric products lining dispensary shelves. However, we’re starting to see some of the other extracted compounds make their way into products and into the hands of consumers, including CBG (cannabigerol), CBN (cannabinol) and CBC (cannabichromene). These other cannabinoids are non-psychoactive and have even more potential than THC in both the medical and recreational markets given the research that’s currently being done on the benefits of these newly discovered plant compounds.”

Dochstader concludes, “Essentially, we have a $13 billion industry in the US that primarily comes from two plant compounds. That same plant happens to have more than 100 other extractable, potentially beneficial compounds that can be packaged individually, or in different combinations, and made into a wide range of consumer products. That creates the perfect formula for high-definition digital printing – demanding graphics, shorter run sizes and extreme SKU proliferation.”

Be Flexible

As converters turn to digital print technology as a means to remain nimble for their cannabis customers, having flexible packaging manufacturing capabilities is another area that’s beneficial to winning in the cannabis market.

Inland’s Young says, “Were seeing the biggest traction in the flexible packaging segment. A portion of that growth can certainly be attributed to the digital printing element, but through the last few years with supply chain struggles, we also saw that a stand-up pouch can be used for many products that would be put into a glass jar with a pressure sensitive label affixed to it.”

According to Young, the advantage of using a pouch is being able to work with one supplier for a pouch needing to be ordered versus maintaining the supply of glass jars, a PS label and a tamper-evident label for potentially the same product. “Now don’t get me wrong,” she says,“Both are great options, and there are certain products and brands that have a vision for what they want on the shelves that point them in one direction over the next. In addition, brand owners are having to weigh the risk vs. reward with their ordering patterns for label and packaging materials to make sure they aren’t at risk of changing regulations that may make their packaging unusable.”

Covannon stresses how flexible packaging is a definite growth area for the cannabis market. “Many products utilize bag-in-bag or box-in-bag packaging, where individually wrapped products are placed within a larger package or pouch,” she explains. “This makes flexible packaging a target product for any converters looking to enter or grow in the cannabis space. Manufactured cannabis products often require panels of lengthy information, so extended content labels (ECL) or any supplemental labels that aren’t necessarily the primary label are also an area of focus.”

Sustainability Stories

Individual brands see the benefits of letting consumers know they are committed to environmental sustainability. However, the way a converter or industry supplier tells their sustainability story is critical in the cannabis industry, explains Dochstader.

“This space is made up of young, progressive entrepreneurs who have high environmental impact awareness and want to work with companies that are authentic in the way that they position their sustainability best practices,” she says. “Growers, brands and dispensaries want to directly participate in a circular economy and are actively researching potential plant-based and recyclable packaging options that could meet their needs.”

Dochstader encourages print and packaging suppliers to take advantage of the opportunity to become effective educators. “Cannabis brands don’t know the intricacies of label and pouch substrate constructions or how different materials can impact printability on-press. They look to their label and printed packaging vendors for guidance and solutions. The better the converter is at crafting the messaging and the comprehensive support that cannabis brands are looking for, the more successful they’ll be in this space,” she says.

Covannon adds, “Environmental sustainability plays a role in every segment but has a strong play in the cannabis business. The cannabis industry overall has the potential to be sustainable. Much of its sustainability issues are due to legal restrictions, but some are associated with industrial agriculture. The environmental impact of cannabis is widespread and diverse, with effects arising from all corners of the industry, ranging from cultivation to transportation. Utilizing printing processes and consumables that reduce the overall carbon footprint and offering packaging that is derived from sustainable materials, or materials that are more recyclable than alternatives, is beneficial to converters as cannabis brand owners are looking to improve their own sustainability stories.”

Looking to the future, industry experts predict even greener pastures ahead. Covannon sums it up: “Cannabis is a vertical that will continue to see year-over-year growth as more and more states legalize recreational use. This market segment relies more heavily on labels and packaging than many others, so brands are often willing to spend more on their labels and packaging. This means we will likely continue to see innovative new offerings introduced in the label and packaging space geared toward this market.”


Custom 420 Supply adds ArrowJet Aqua and ArrowCut Nova
Custom 420 Supply has been creating custom designs and packaging since 2015. Specializing in the production of cannabis jars, tubes, labels, and bags, the company has grown into one of the largest players in the cannabis packaging space. Custom 420 Supply works with customers from the design stage through production to provide a one-stop-shop for all packaging needs.

With the goal of upgrading its digital printing and converting equipment, Custom 420 Supply has recently partnered with Arrow Systems Inc., investing in an ArrowJet Aqua 330R and ArrowCut Nova 250R. Through these equipment additions, Custom 420 Supply plans to expand its in-house label printing division.

“The added speed of both the ArrowJet Aqua and ArrowCut Nova laser finisher will allow us to take on more projects, and get them into our customers’ hands faster than ever,” says Steve Hobart, one of the founding partners of Custom 420 Supply. “The print quality and cost savings from the ArrowJet is what immediately caught our eye, but when we went for the demo and Arrow Systems showed us the laser finisher that we could pair with the printer it really was a no brainer for us.”

The ArrowJet Aqua 330R features Memjet’s new Duraflex technology and allows customers to print using a water-based pigment ink at speeds up to 45 m/m. Pairing this with a laser finishing option gives Custom 420 Supply the ability to digitally cut out their labels at extremely high output in both roll and sticker formats.

“We are excited to work with a company like Custom 420 Supply,” says Shaan Patel of Arrow Systems. “They have a really unique insight into the budding cannabis space, and we are looking forward to helping them grow their market share. One of the best ways to do that is to upgrade your printing technology to give you more throughput so you can bring on new customers and accounts. We hope that the combination of the ArrowJet and ArrowCut allow them to do just that.”