With the legalization of cannabis in the United States of America (USA), the sales number of cannabis has been increasing like anything. It is estimated that the total sales of legal cannabis in the United States alone will touch the mighty figure of over $40 billion by the end of 2025. The sale of legal cannabis is reported somewhere around $8 billion in the year 2018 alone. Seeing the rate at which the sales of legal cannabis is increasing, it is no surprise that the sales will touch the mammoth number of $40 billion within the next few years.
Since the consumption of legal cannabis has been mounting rapidly, cannabis products have become the largest growing Consumer Packaged Goods (CPG) sector in the United States of America. The growth of legal cannabis sales is in fashion today and it has been impacting the CPG industry at a large level. It is no wonder if legal cannabis would transform the whole CPG industry alone. Here, we will discuss a few ways by which the legal sales of cannabis can renovate the CPG industry on its own!
Cannabis is a Blessing for Packaged Snacks
It is no wonder that once a person consumes cannabis, he or she craves cookies, cheese snakes and cupcakes, etc. The reason being is that cannabis contains THC, which increases the appetite of the person who consumes cannabis. Hence, the areas where the consumption of cannabis is more elevated, the sales of candies, snacks, and cupcakes show a significant increase as compared to those areas where the cannabis is yet to be officially recognized. This shows that the consumption of legal cannabis has a direct relation to higher sales of other packaged snacks.
The Requirement of Automation
Since cannabis is legalized in various parts of the United States of America, it is observed that the production of packaged food has been increased at rapid growth. Consequently, the need for automatic food package filling machines has become a necessity for the food production companies. Even after the legalization of cannabis in the United States of America, the cannabis companies have a habit of packing their cannabis products by hand only. However, the rapid growth of production makes these companies realize that in order to keep up the pace with the daily demand of their products, they have to embrace automation.
Cannabis Works as the Replacement
It is not wrong to say that cannabis is a tough competitor for other packed goods such as pain relievers, nicotine, and even alcohol. The United States of America’s information, data and measurement firm, Nielsen Global Connect, in a survey, shows that as many as 41% of American adults who are willing to quit smoking are considering the use of cannabis as an alternative to be able to stop smoking. Furthermore, 1 out of every 5 Americans who consume beer states that the consumption of cannabis makes them pay less on beer. Other than that, as many as 35% of Americans consider the consumption of cannabis as a remedy for their pain instead of OTC pain relievers.
The Arrival of New Packaging Companies
With the increase in the consumption of packaged food, many packaging companies are now offering food packaging services to relevant businesses. Food and packaging companies that cannot afford or are not competent enough to package their food snacks tend to hire these packaging companies for their services. It has now become an economical and prevalent option in the CPG industry. Within the two years, the number of such food packaging companies has escalated at a rapid speed.
The Makeover of Cannabis Packaging
With the legalization the cannabis, the consumers of cannabis, now, demand sophisticated and tasteful products with trendy and safe packaging. Gone are the days when people have to hole up with those classic plastic baggies of cannabis. Nowadays, everything becomes a social trend and people tend to flaunt everything they have to on social media. In addition, due to the legalization of cannabis in the United States of America, access to cannabis quite easy. Hence, there is a dire need of keeping cannabis out of the reach of kids and children under the age of 18. Consequently, the safe and child resisting packaging of the cannabis package is a must.
These are a few most significant ways that ensure that the legalization of cannabis has been transforming the CPG industry at a rapid pace. And, there is no wonder that we will get to see some more serious changes in the technology and methodologies of the Consumer Packaged Goods (CPG) industry in the near future.
