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Opportunities for Cannabis retailers to increase ROI by investing in packaging

2024-04-18


The cannabis industry is growing rapidly in the United States, with the market expected to hit $41.5 billion by 2025, and producers are competing to stand out in a crowded, heavily regulated marketplace. In a regulated industry with limited marketing options, it’s almost impossible to build a brand the traditional way, making marketing tactics like packaging paramount for influencing consumer purchasing. In fact, according to recent research, consumers are willing to pay up to 26% more for premium packaging, signaling a significant opportunity for cannabis producers to enhance brand value and drive sales through strategic packaging investments and partnerships.


Just as premium packaging has helped brands in the alcohol space capture new audiences and differentiate, the same rings true in the cannabis industry. More often than not, wine consumers pick a label to pick a bottle. A similar pattern has emerged amongst cannabis consumers who pick packaging to pick a product. According to the research report, combined perceived quality of the flower, brand, and packaging lead as the primary reasons to purchase a cannabis product. All of this to say, brand matters, especially when it comes to cannabis.


Cannabis producers and packaging experts can grow together to put these data learnings into action. Not only does packaging present an avenue for brand building in the cannabis space, but a focus on branding for cannabis producers means potential partnerships between packaging experts and cannabis industry insiders. 

 
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