Page 38 - Packaging News magazine Jul-Aug 2021

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SNACKS & CONVENIENCE | www.packagingnews.com.au | July-August 2021
Is it time to hash out
new packaging ideas?
As the packaging landscape continues to change rapidly, industry seeks to cross new frontiers that will sustain us in an ever-competitive market. One enterprising direction is the need for convenient packaging for the globally more recognised and legalised cannabis trade. Karen McKenzie writes for PKN.
TTHE cannabis industry is shedding stigma at an astonishing speed. As the push for legalisation around the world gains momentum many believe it is a question of when, not if, it is recognised in the main- stream as a legitimate pharmaceuti-
cal medicine or even accepted in the same way as alcohol or cigarettes in social circles.
Here in Australia the cannabis industry may be progressing slower than other countries, but it is pro- gressing. In 2016 the use of medicinal cannabis was legalised at the federal level and in 2017 Food Standards Australia New Zealand (FSANZ) made low THC Hemp food legal for human consumption in Australia. 2019 saw Canberra become the first city to legalise possession and growth of small amounts of cannabis for rec- reational use and just last year the Therapeutic Goods Administration (TGA) announced the approval of low-dose cannabidiol (CBD) for over- the-counter sale in pharmacies across Australia.
It is still early days for Australia, with many other countries already reaping the social and economic ben- efits of a regulated cannabis industry.
GLOBAL DIRECTION
In 1996, in the USA, California became the first state to legalise med- ical cannabis, igniting a movement that spread to most states by 2016. Today the drug is legal in 35 states, with 16 allowing adults to use it for recreational purposes. After Uruguay, Canada became the second country in the world to legalise recreational cannabis in 2018 after medical use had been allowed since 2001.
In Europe, 2021 is shaping up to be a critical year for the cannabis indus- try with many countries changing
legislation allowing cultivation, pro- cessing, and commerce in cannabis related products. Many see the legiti- misation of recreational cannabis as a matter of course in much of the region.
Whatever your opinion, it cannot be denied that the cannabis market is expanding tremendously with all reports forecasting enormous mar- ket growth.
Early days or not, since the legalisa- tion of export of medical cannabis in 2018, the Australian government has expressed its desire to become a leader in the global supply of cannabis prod- ucts. Australian Health Minister Greg Hunt said the country wants to be the foremost supplier of cannabis globally.
Earlier this year, the first batch of medicinal cannabis was shipped off to Germany marking the beginning of a ten year, $92 million trade agree- ment with the region which is the world’s third largest legal cannabis market behind the US and Canada.
A legal, commercial framework for cannabis cultivation and distribution has proven to be a high tax earner for governments involved. Canada alone brought in $183 million in federal taxes for legal cannabis in the first five months after legalisation (Statistics Canada). This figure does not include broader economic bene- fits attained as ancillary businesses jostle to get a piece of the action.
ABOVE: The N2 design, a food-grade tin can with a ring pull top and separate child-resistant cover, is flushed with nitrogen before it is hermetically sealed.
AUSTRALIAN MARKET
According to a report in 2020 by Grand View Research, the Australian legal cannabis market size was val- ued at USD 171.7 million in 2019 and is projected to expand at a compound annual growth rate (CAGR) of 42.1 per cent from 2020 to 2026.
Any industry with this type of growth attracts significant attention from investors and over the past cou- ple of years we have witnessed estab- lished, international cannabis com- panies positioning themselves within Australia laying a stake in what they believe to be a well-placed lucrative arena. With a revenue fore- cast of USD 1.9 billion by 2026, this strategy may be wise.
The array of cannabis-based prod- ucts is on the rise – oils, beauty products, pharmaceuticals, choc- olates, gummies, even dog treats are hitting the market as produc- ers strive to find inventive new ways to cast off decades of stigma. Of course, while laws surround- ing the legal use of cannabis differ from country to country, they all come with strict regulations – par- ticularly regarding packaging. As the markets continue to grow, laws continue to evolve, and companies are recognising the importance of investment in compliant, child-safe, sustainable packaging.