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Is Cannabis a Consumer Packaged Good? | Cannabis as a CPG
Legal Cannabis as a CPG
If you live in a state that has a legal cannabis market, it’s a game-changer for the consumer packaged goods (CPG) industry. Why? Well, basically every single mainstream product on the shelves, from lotions and shampoos to drinks and snacks, can be infused with tetrahydrocannabinol (THC) or cannabidiol (CBD), the most common (and popular) cannabinoids found in cannabis.
Unless you’ve been living under a rock, you’ve probably seen (or even tried!) a product infused with CBD - it's a billion dollar cannabis industry! Long heralded as the property of cannabis that “heals”, cannabidiol is growing in popularity. In fact, major food and beverage companies and brands -- including Ben and Jerry's, Coca-Cola, Hershey Co., and General Mills -- have shown interest in incorporating CBD into their products.
Cannabis, particularly CBD, is no longer a product consumers use in secret. Now that it is legal in almost every state, you can guarantee that more and more CBD-infused products will pop up on the shelves. So, what does this mean for the billion-dollar consumer packaged goods CPG cannabis industry? Read on to learn more.
It All Started With The 2018
Farm Bill Impacting CBD Market
The 2018 Farm Bill, officially The Agriculture Improvement Act of 2018, was groundbreaking for the cannabis industry. It authorized the industry to produce hemp and removed hemp and hemp seeds from the DEA’s schedule of controlled substances. Additionally, it directed the USDA to issue regulations and guidance to implement a program to create a consistent regulatory framework around the production of hemp in the United States.
Although it did not legalize cannabis to the level it’s legalized today (cannabis with THC was still illegal!), it did pave the way for a billion products containing CBD to become more mainstream and make their way into the legal cannabis market. Without the 2018 Farm Bill, cannabis as a consumer packaged goods CPG wouldn’t exist.
Snacks As A Consumer
Packaged Good
Cookies. Crackers. Candy. What do they all have in common? Well, they can all be infused with CBD, and in states where marijuana is legal beyond just CBD, they can even be infused with THC. Beyond CBD and THC-infused snacks themselves, it’s no secret that using cannabis can increase your appetite. This means that if cannabis is legalized in your state, you can expect snack sales to go up. In fact, Nielsen data shows that the growth rates for candy and snacks are rising faster in areas where cannabis is legal for recreational use than in states that haven’t yet legalized it.
Whether customers are snacking ON cannabis or snacking AFTER they use cannabis, one thing is for sure: the legalization of American and Canadian cannabis will increase the demand for packaged snack foods in one way or another.
The Cannabis Market And Customers
Are Diverse
The other important thing to consider is that mainstream cannabis consumers are super diverse. Although the average cannabis consumer is men and women in their early 40s, individuals as young as 18 and as old as 100+ use cannabis, either in its flower form or in more mainstream lotions or foods infused with CBD and THC.
Although 26% of consumers purchase their products at a dispensary, 18% purchase them online and 9% at the grocery store. All this to say: as with other CPGs, how you package and present your product to the public is essential. The cannabis market is saturated with competition, so standing out from the crows through superior and stylish packaging is a must.
Cannabis As a CPG FAQ’s
Here are some frequently asked questions about cannabis consumers and cannabis as a consumer packaged good:
Q. Who is the typical cannabis consumer?
Data shows that there is no typical cannabis consumer, as many different people use cannabis for many different reasons. Although most users are in their 40s, it’s legal for individuals as young as 18 or 21 to use cannabis or cannabis-infused products. It has also been growing in popularity among senior citizens and the elderly.
Q: What is a CPG business?
A CPG business often produces on a large scale and with a short lifespan. CPG companies sell their goods to retailers, who then sell directly to consumers. They often rely on big data technology and analytics to perfect their products and marketing and improve their CPG economic indicators.
Q: Which state consumes the most cannabis?
Unsurprisingly, big data and market performance shows that the states with the highest cannabis consumption are states with legal cannabis sales. The number one state is Oregon, followed by Colorado, Vermont, Maine, and Alaska.
Q: What do cannabis consumers want?
Most cannabis consumers want a potent product at a low price. To help keep costs down, we recommend partnering with CarePac for your cannabis packaging needs. With low MOQs and competitive pricing, we can help you keep your costs down.
Q: Which country consumes the most cannabis?
As of 2022 news, Chile consumes the most cannabis, with Canada, Papa New Guinea, Israel, and Australia rounding out the top 5. The United States is #9 on the list of countries that consume the most cannabis.
Q: What age group uses cannabis the most?
Although all age groups use cannabis, big data and market performance show it is most prevalent among users 18-25
Don’t forget retail cannabis itself as a CPG
Though most of this article has focused on items infused with CBD and THC, it’s important to note that cannabis itself needs to be packaged and has an influence on the CPG industry. After all, cannabis as the product itself remains foundational to cannabis as CPG. Cannabis comes in so many forms (flower, edibles, drinks, vapes, oils, etc.), and each type of cannabis product needs to be packaged in a way that’s compliant with the cannabis industry laws and regulations.
People tend to use cannabis for many different reasons, from pain relief or medical purposes to those who use it as a replacement for alcohol or nicotine during a night out with friends. Cannabis can also be used topically, either through creams infused with CBD or by rubbing a tincture into your skin.
All this to say: not only are cannabis-infused products a CPG but so is cannabis itself and in many different formats. Whether you package cannabis itself or products infused with cannabis, you need to package it in a stylish and compliant way.
Trust CarePac With Your Cannabis Packaging
If you’re interested in cannabis as a CPG, we’re your one-stop shop for weed packaging of all shapes and sizes. Whether you’re packaging edibles, flower, vape cartridges, or anything in between, our selection of stand-up pouches and other types of cannabis packaging are guaranteed to exceed your expectations.
All our packaging can be custom ordered or, for quicker delivery, purchased in standard sizes. Want to learn more? Reach out to us today, or get an Instant Quote now.
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