Competition is fierce in just about any sector, but the emerging nature of the legal cannabis industry makes the environment particularly competitive. Increasing legalization across the country has led to rapid growth in the market for cannabis products, and it’s too early to identify any clear industry leaders. Increased demand for these products is causing many new brands to break into the cannabis business, each of them trying to establish a brand identity and a loyal pool of consumers. The right packaging can help a product in any industry stand out from the competition.
The Challenges of Breaking into the Cannabis Market
The production of newly legalized cannabis products can be a lucrative business opportunity, which is why so many new suppliers are popping up around the country. But the number of new players in the field of cannabis makes for a highly saturated market, with extremely high levels of competition making it difficult for any single brand to gain a clear advantage. Despite the substantial profits to potentially be made, venturing into the cannabis industry is a risky investment. Because the market is so new, brands have yet to establish themselves and their reputation for quality among consumers. When a new market emerges, there some uncertainty before trends are revealed, and consumer trust in a brand begins to grow. It can be difficult to judge a brand’s success in the early days.
The increasing legalization of cannabis products has also opened the door to innovation and creativity in the development of new products. With a legal consumer base to develop, different brands have branched out to explore new types of edibles and high-end or niche cannabis products that appeal to a certain subset of the population that uses marijuana for medical or recreational purposes. With new products hitting the shelves every day, it can be hard for a supplier to keep up, stay relevant, and hold consumer attention.
Effective Cannabis Packaging to Establish Your Brand
It’s not easy to stand out and cultivate a loyal consumer following in the emerging cannabis market, but the way packaging suppliers approach packaging can give them a significant advantage over the competition. Because seeing the packaging on a dispensary shelf is often the first interaction a consumer/patient has with a given brand or product, packaging plays a crucial role in introducing and establishing a clear brand message. Effective packaging in the cannabis industry can be used to:
Establish a unique brand identity. Is your brand identity scientific and research-based, or light and “fun”? Is your identity rooted in providing consumers with a luxurious, high-end experience, or using organic ingredients and sustainable growing methods? Your brand’s essential identity should be used to pick the color scheme, graphics, and overall appearance of your packaging.
Provide brand recognition. Once a consumer is familiar with your products, they should be able to pick out your brand on the shelf without having to look too hard. Consistent use of colors or other design elements in packaging make it easy for consumers to recognize a brand they know and trust.
Convey important information. As the legalization of cannabis products is both a recent and ongoing process, policies and regulations are still being established. You should be familiar with both state and local ordinances on cannabis products, and should be prepared to adjust to new legislation. Part of compliance is ensuring that your packaging conveys all required information such as serving size, concentration, any relevant warnings or symbols, etc.
Breaking into the rapidly growing market for legal cannabis products can be difficult, but developing your brand through packaging can go a long way toward helping your products stand out from the competition.
credit:420intel.com
