Premium Packaging Unlocks New Opportunity for Maturing Cannabis Industry
Just as luxury packaging has helped brands in the alcohol, fashion, and food space break through to capture new audiences, new research shows similar investment in premium and differentiated packaging presents a significant opportunity for the maturing cannabis industry.
The first of its kind study from cannabis industry consultants Physis + Agency shows that investment in premium packaging can help cannabis producers command higher prices and strengthen brand loyalty by creating opportunities for consumers to collect, covet and gift their cannabis packaging. Consumers are willing to pay up to 26% more for ⅛-oz of cannabis flower when they consider it to be “something special” including premium packaging that is collectible, giftable, or memorable.
Cannabis Consumers Looking to Show Off When Sharing with a Crowd
Half of cannabis consumers (49.7%) consider premium packaging to be more important when in social settings, with 3 in 5 (59.7%) agreeing that special branding leaves a lasting impression on their social circles. This trend is particularly pronounced in cannabis users ages 31-40, who were the group most concerned about how others view them when it came to their cannabis product choices.
The “wow-factor” of stand-out packaging is especially important for those buying at the top-end of the market. Survey respondents willing to pay the highest prices for an ⅛-oz of cannabis consistently emphasize the social value of product and brand attributes, with 84% agreeing these factors significantly matter in their social circles. These findings highlight the interplay between social dynamics, pricing considerations, and branding in shaping consumer buying patterns.
“Packaging is even more important in the cannabis industry because of brand and advertising restrictions not imposed elsewhere. What we’re seeing emerge is the opportunity for a new era in cannabis packaging that goes beyond utility to emphasize creativity, collectability, and memorability,” said Aric Mayer, Physis + Agency principal and lead researcher. “It's not just about flower quality anymore. The combination of flower quality, brand, and packaging stands out as the driving force behind consumer choices, prompting producers to create a captivating showcase for their product.”
Will you be receiving flower, not flowers this Valentine's Day?
Premium packaging is driving a growing trend in cannabis gifting. Over half (56.7%) of respondents express a likelihood to gift cannabis products when packaged in premium branding, signifying a real opportunity for cannabis growers to create strongly branded packaging to capitalize on limited edition gift runs around major holidays.
One of Washington State’s leading cannabis producers, House of Cultivar, is already capitalizing on the findings of this report – debuting elevated packaging for its new Colors by Cultivar Lobster Roll strain for Valentine's Day. Enhanced with high-end inks, special embossing effects and holographic materials, the strain’s unique jar for an ⅛-oz of cannabis elevates the overall aesthetic and experience. In addition to the eye-catching UV dimensional effects of the label, its contour-cut edges offer peeks into the jar, allowing consumers to see the quality and beauty of the product.
The limited run design was created in collaboration with Gold Leaf Print & Packaging – a premium cannabis packaging provider – and Roland DGA, using one of the wide-format imaging leader’s TrueVIS LG-540 UV printers.
“As our industry matures, it is critical we find ways to connect with consumers and stand out in an increasingly crowded marketplace,” said Daniel Peterson, Art Director for House of Cultivar. “This research tells us investing in higher-end and creative packaging not only builds brand loyalty with existing customers but expands our base and introduces new ways to grow our business and profit margins.”
House of Cultivar will be selling a limited quantity run of special edition jars at a higher price point than their standard ⅛-oz jar for Valentine’s Day prompted by the research findings.
Peterson continued, “Most ⅛-oz jars in the industry are pitched at a lower price point and are packaged up with cheap-looking stickers. Partnering with the team at GoldLeaf gives us access to their innovative Roland DG machines – and that gives us an edge. Their advanced UV printing and cutting technology allowed us to experiment with gloss effects to level-up our designs, helping us create a high-end special product run that shines on the shelf, without breaking the bank to produce.”
The preceding press release was provided by a company unaffiliated with Packaging Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Packaging Impressions.
