Boom in the CBD Product Industry Creates Need for Quality Packaging
CBD is becoming more widely available in legalized capacities and is currently the fastest growing industry in the United States — thirty states plus the District of Columbia have already enacted laws that broadly legalize marijuana. This swift CBD industry boom has made designing the right packaging more important than ever.
Cannabidiol (CBD) is derived from cannabis plants, mostly from hemp strains. Extracted from the plants, the CBD is mixed with coconut oil and hemp seed oil to be the carriers of the substance. CBD lacks the psychoactive component, Tetrahydrocannabinol (THC), that is what causes the high from marijuana.
CBD has been shown to relieve pain, stress, inflammation, and so many other symptoms. People who use CBD often use oil, balm, supplements, and butter.
In a 2020 forecast for the US CBD and consumer packaged goods (CPG) industries, Nielsen projected that the CBD market could be a $2.25 - $2.75 billion industry. This projection has factored in potential problems that may occur as the FDA tries to regulate the industry.
Many businesses, possible consumers, and marketers are waiting for additional guidelines from federal regulators. However, Nielsen recognizes that this will not stop the high demand for CBD products, reporting that consumer packaged goods companies will face new challenges with this product.
Every CBD product has its own packaging and labeling needs. And while the rules and regulations differ state to state, child-resistant and food-grade packaging remain crucial. Packaging must be regulation-compliant while also appealing to customers.
CBD Industry To Grow
Currently, the use of CBD is a strong trend in the health and wellness industry. It’s one of the most sought-after ingredients for everything from muscle soothers to anti-aging serums. In 2018, CBD sales rose to more than $500 million, and analysts predict that the growth could scale to a $22 billion market.
The projected growth in the CBD industry means that the demand for sustainable packaging will also boom alongside these new CBD products. Packaging will need to meet the demands of consumers who expect unique, responsible presentations. This could mean anything from glossy cartons to premium graphics.
Types of CBD Products
- Beauty and personal care, such as creams, gels, balms, and lotions.
- CBD oils, such as dropper-style containers and simple bottles
- Supplements in tablets, gummies, soft gels, or capsules
- Beverages and snacks
- Pet Care Items
The fast-growing demand and the corresponding rise in the CBD market has created a gap across the industry for more information and targeted education. Based on Nielsen’s studies, medical advice is one of the biggest motivators to people trying hemp-based CBD trials. In fact, surveyed individuals said that 50% would be motivated to try a hemp-CBD product with a healthcare practitioner’s guidance. Smaller percentages would try CBD based on recommendations made by friends, family, or a familiar brand.
Another area that CBD will see growth is in the market of ingestibles. However, the CBD industries are waiting for FDA’s permission to legally infuse hemp-CBD extracts into ingestibles, such as capsules, gummies, beverages, and other options. Pet owners have been passing CBD to their pets as well. Nielsen’s data found that the pet owners who were giving their dogs CBD were using products that weren’t formulated for dogs. This is a concern that product manufacturers should take into consideration.
Everyone wants a part of this emerging market of hemp-CBD products, and it seems that consumers are most interested in acquiring their products through convenience stores, grocery chains, and mass merchandisers. However, online sales will continue. Only time will tell which types of distributors — traditional brick-and-mortar or online sales — will gain the market. One thing is certain, however. The brands that choose quality and sustainable packaging for their hemp-CBD products will carve out a recognizable place for themselves in the industry. The demand for CBD means a rising demand for great packaging.
Golden Arrow is committed to eco-friendly packaging that protects the environment from start to finish with a zero-waste factory process. Over and over again, Golden Arrow has created unique and beautiful packaging that meets client goals and consumer expectations. Speak with an industry expert today.