26 Aug Top 5 Companies with “Out of the Box” Packaging Solutions for the Cannabis Industry
The Global legal marijuana market is likely to reach over USD 66.3 billion by the end of 2025, as per a report by Grand View Research, Inc, growing at a CAGR of 23.9%. There is a growing acceptance of the curative effects of cannabis, with some countries such as Canada and certain states of U.S legalizing the use of Marijuana for medical and recreational use. Research has time and again shown that cannabinoids (CBD), extracted from the cannabis plant, have varied medical uses with minimal side effects, making it a sought after alternative to traditional pharmaceutical options.
The U.S, where the use of cannabis has only been legalized in 33 states for medical use and 11 states for recreational use, is one of the largest untapped markets for Cannabis, with an estimated value of over USD 11.9 billion in 2018, which is likely to grow at a CAGR of 24.1% from 2019 to 2025. Currently 33 states in the U.S along with Washington, D.C. have legalized medical marijuana while 10 states (plus D.C.) permit recreational cannabis. 2018 was a great year for CDB industry, not only was the Farm Bill passed that allowed for the sale of hemp and hemp-based cannabidiol products, but the FDA also approved its very first cannabis-derived drug Epidiolex for treatment of seizures.
This has proven to be a great opportunity for a number of ancillary industries such as consulting, cultivation, delivery, packaging and branding solutions to establish a strong presence as an indispensable part of the industry. According to estimates by Reports and Data the Global Packaging industry will reach USD 5.20 billion by 2026 growing at a CAGR of 26.4% from 1.39 billion in 2018.
There is a growing demand for packaging material that is recyclable, biodegradable, and environmental friendly, which can retain the freshness and integrity of cannabis and hemp extracts, medicines and edibles. We take a look at some companies that are bringing innovative and customized solutions to the cannabis packaging industry.
KushCo Holdings, (OTCQX: KSHB)
Market Cap: $354.34M; Current Share Price: 3.988 USD
Data by YCharts
The company’s subsidiary Kush Bottles, develops and sells novel packaging solutions for the Cannabis Industry such as consumer cyclical, packaging and containers. KushCo is the leading supplier of sustainable packaging that conforms to market and government regulations. It has over 1500+ stock keeping units and produces labels and processing supplies that are complaint with local laws and regulations.
The company also manufactures vaporizer hardware and technology and is one of the four CCELL distributors in the U.S. Their products use the CCELL vaporizer, which is based on a revolutionary heating element that can replace traditional cotton fiber with porous ceramic. It offers an array of cartridges and batteries with numerous options for core materials and heating technologies.
KushCO offers a wide variety of child resistant custom branding solutions under brand names such as DymaPak, Grip N Glide, Kush N Slide, Palm N Turn, Stock and Wallee. Futurola, Bic and Budgloves are its range of pre-roll papers, handling and display jars. In addition the company also manufactures Vape Packaging, along with supplying pure hydrocarbon and solvents such as isobutene, n-butane, propane and ethanol for producing high quality concentrates.
Furthermore the company offers customized branding solution to players in the Cannabis market and has over 10,000 businesses as its clientele.
Medtainer, Inc (OTCPK: MDTR)
Market Cap: $19.89M; Current Share Price: 0.36 USD
Data by YCharts
The company which changed its name from Acology Inc to Medtainer Inc in Septemer 2018 manufactures and markets Medtainer, the first-ever FDA approved polypropylene air-tight, water-tight, smell-proof delivery and storage container with a built-in grinder. This allows patients to store and grind their medication such as pills, herbal medications, teas to name a few. The product is made up of medical-grade No. 5 polypropylene resin that is non-porous and non-leaching and is cost-effective and portable as well. It comes with a child-resistant cap and is water-proof and smell proof.
Medtainer was originally developed for a pediatric and geriatric population as a hospice and palliative care product; however it quickly made inroads into the growing medical marijuana market. The product is now sold in U.S, Canada, Mexico, South America and Europe. It has also been able to expand its target markets to industries such as culinary, coffee, pharmaceuticals and veterinary medicine. The company also has a state-of-the art design and printing team, which can assist its customers with custom branding solutions.
The company services prominent players in the industry such as Aurora Cannabis (NYSE: ACB), Organigram (NASDAQ: OGI), Aphria (NYSE: APHA), Tilray (NYSE: TLRY), Cannmart and 7 other licensed producers, taking the number of companies using its container to 12.
Cannabis Science, (OTCPK: CBIS)
Market Cap: $57.32M; Current Share Price: 0.024 USD
Data by YCharts
Cannabis Science, is primarily a biotechnology company focused on developing phytocannabinoid-based pharmaceutical products that target indications such as Cancer, Arthritis, Rheumatism, HIV/AIDS, Obsessive Compulsive Disorder to name a few. In March 2018, the company acquired Bottle It Inc, a manufacturer of polyethylene terephthalate (PET) bottles and containers, which has a wide customer base in North America and abroad.
Bottle It is a PET injection-mold and blow-mold manufacturer that also offers performs for bottled waters, tinctures, drops, various pill bottles, sprays, energy drinks and vitamin shots.
The acquisition was made to bolster the revenue sources of Cannabis Science, which now has an in-house facility to manufacture PET bottles and containers for its own products, besides offering its services to other companies that deal in beverages, specialty waters, foods, cosmetics, and other products globally.
This strategic move is part of a series of such decisions by the company to extend its product line and manufacturing expertise. The company seeks to enter the multi-billion dollar PET bottles and containers market and this move will serve to give it a head start in the industry. Bottle It also offers customized bottling and packaging solutions, through its own in-house team of professionals, who combine functionality with creativity to come up with high-quality products.
The company has many firsts to its credit such as being the first company to supply BPA free acrylic concentrate containers, supplying state specific “Best Practices” printed bags, supplying non-stick silicone concentrate containers co-designed and manufactured in association with NoGoo to name a few. It is also a pioneer in supplying child resistant bags for packaging edibles. The company’s offerings include Glass Stash Jars, Smell proof bags, concentrate containers, blister packs, child resistant and custom packaging.
Cannaline uses a proprietary mix of films to create bags that are air tight, water tight, sand tight. Its glass jars are made of the highest quality material ensuring product safety and integrity. They also offer concentrate containers in a variety of sizes and shapes and are made out of glass, acrylic, and poly-styrene.
The company also offers custom print services through its in-house graphic design team, which helps the customers promote and advertise their business efficiently. It also provides accessories like odor remover under the NODOR brand name, Cannaline grinders and high-speed production heat sealers.
Greenlane Holding, (NASDAQ :GNLN)
Market Cap: $276.949M; Current Share Price: 6.69 USD
Data by YCharts
Greenlane’s Pollen Gear brand is a pioneer in child resistant packaging solutions and has been recognized as one of the Top 100 cannabis companies in 2018, by the Entrepreneur Magazine. The company has a many patents to its credit and is the first in industry to introduce a child-resistant glass jar collection named the Hi-Line. The company acquired Pollen Gear in January 2019, before which it served as its exclusive global distributor.
The company manufactures Glass Jars, Containers, Bags, Cases, Packaging and Tubes under brand names like Lo-Pro, PopBox, SnapTech, Button Box and Five10. The company has recently been awarded a second patent by the U.S PTO for its child-resistant SnapTech® Bags, which are used by leading cannabis brands such as Medmen (OTCQX: MMNFF), Organigram and Farma.
The patent covers its snap-locking mechanism which offers ASTM (American Society for Testing and Material s) complaint Child-resistant solutions.
This patent is an addition to an already robust patent portfolio of the company, which has over 30 patents and patents applications for its Hi-Line™ jar range. Besides this Greenlane has over 100 patents and patent applications across a broad spectrum of pollen gears offerings.
In addition to Pollen Gear, Greenlane has a bouquet of brands that offer premium vaporization products and accessories in the U.S and Canada. The company’s customer base has over 7,000 independent smoke shops and regional retail chain stores, along with licensed cannabis cultivators, processors and dispensaries. The company also operates a direct-to-consumer e-commerce websites named Vapor.Com.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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