In recent years, the cannabis industry has experienced a seismic shift in both regulation and consumer perception.
With the legalization of cannabis for medicinal and recreational use in many regions, a burgeoning market has emerged, presenting opportunities and challenges for Consumer Packaged Goods (CPG) companies.
Redefining Wellness Products
Traditionally, CPG has been associated with everyday items like toothpaste, snacks, and cleaning supplies. However, as cannabis products continue to gain mainstream acceptance, they are reshaping the CPG sector.
A study conducted by Brightfield Group, a leading market research firm, found that 36% of cannabis consumers are now incorporating cannabis-infused products into their wellness routines. This includes items such as CBD-infused skincare, topicals, and even beverages.
This shift towards wellness-focused cannabis products has opened up new avenues for CPG companies.
In 2020, the global CBD-infused products market was estimated at $967 million, with projections indicating a compound annual growth rate of 21.5% through 2028. This data underscores the potential for CPG brands to tap into the growing demand for cannabis-infused wellness products.
The Rise Of Microdosing
Microdosing — the practice of consuming small, controlled doses of cannabis to achieve therapeutic benefits without the psychoactive “high” — is gaining traction.
A study published in the “Journal of Clinical Medicine” in 2021 revealed that microdosing THC (tetrahydrocannabinol) can alleviate symptoms of chronic pain, anxiety, and depression without the typical side effects associated with higher doses.
CPG companies are taking notice of this trend, developing precise and consistent microdosing products.
This aligns with the broader consumer shift towards customized wellness experiences. In fact, a report by BDS Analytics predicts that microdosing will become a driving force in the cannabis CPG sector, with products like low-dose edibles, tinctures, and capsules becoming increasingly popular.
Sustainable Packaging And Ethical Sourcing
As the cannabis CPG industry matures, sustainability and ethical sourcing are becoming key factors in consumer decision-making.
A survey conducted by New Frontier Data found that 60% of cannabis consumers are more likely to support brands that prioritize eco-friendly packaging and sustainable practices.
This trend is pushing CPG companies in the cannabis space to reevaluate their packaging materials and supply chain processes.
In response to this demand, some companies are adopting innovative packaging solutions, such as recyclable and biodegradable materials, as well as reducing excess packaging.
Additionally, there is a growing emphasis on sourcing cannabis from ethical and environmentally responsible cultivators.
Join us at Benzinga’s Cannabis Capital Conference for our panel “Women Grow Presents: A CPG Playbook” featuring industry leaders Roz McCarthy from Minorities for Medical Marijuana and Cynthia Salarizadeh of Asha Media Group.
In this 20-minute session, they will delve into the dynamic world of CPG in the cannabis industry, offering insights and strategies that are shaping the future. Don’t miss this opportunity to learn from the best in the business!
Women Grow, the largest network of cannabis professionals, is proud to present this session, highlighting their commitment to diversity and innovation in the rapidly evolving cannabis sector.
Benzinga Cannabis Capital Conference
The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference is happening on Sept. 27-28 at the Magnificent Mile Marriot Hotel in Chicago.
SEPT. 27-28. This is where DEALS GET DONE, money is raised, M&A get started and companies meet investors and key partners. Don’t miss out.
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