Cannabis operators have a lot to consider when designing and producing packaging for their products.
Multi-state operators (MSO) must carefully consider child-resistant features while also ensuring their packaging or labeling can’t be considered attractive to children. Sustainability is another key point many manufacturers are increasingly placing more emphasis on as they simultaneously pursue automation as a means to scale production.
Even after all of that, MSOs need to ensure their packaging adheres to the unique requirements mandated by different markets. Nearly half of U.S. states have legalized recreational cannabis and almost 40 have passed medical marijuana laws, so the potential for large amounts of variations in packaging is significant.
Elizabeth Corbett, president of enterprise sales at AE Global, knows all about it.
“I really wish the states would work together more, because it would be better for the industry from a cost perspective,” she said.
Some of the companies she works for operate in 12 states and need to feature different language for each state on their edibles packaging. That means that a company with only 10 flavors needs 120 SKUs.
“That’s just really wasteful. It’s probably the thing that I’m most frustrated and disappointed by.”
A universal problem
Michael Markarian, CEO of Contempo Specialty Packaging, shares Corbett’s pain.
He described the interstate cannabis packaging conundrum as a universal problem shared by the well-known MSOs, as well as emerging brands that are entering into new states via licensing or other agreements.
Some operators are purchasing one universal package and using labels to customize, he said, but still most use many art files on the same sized box. For example, one MSO he works with requires more than 200 pieces of artwork for its most common vape packaging.
“This would still be 30 files if the regulations were standardized, but 30 versus 200 is a huge difference,” said Markarian. “I don’t think there is really any value created by having different regulatory symbols across different states. I think moving forward, new states should start adopting existing symbols found in other states. Someone needs to take the lead and start the trend.”
New states and mature markets
It’s possible that emerging recreational cannabis markets like Minnesota still have a chance to adopt regulations that streamline packaging processes for cannabis operators planning to do business in their states.
But David Harns, public relations manager for Michigan’s Cannabis Regulatory Agency, said it’s not always easy for mature cannabis markets to find efficiencies that match up with what other states are doing.
“While we do communicate with other regulators and find common ground where possible, each state needs to follow their own rules and statutes as determined by their legislature or voters. Sometimes they align and sometimes they don’t,” he said.
Illinois Cannabis Regulation Oversight Officer Erin Johnson said operators in her state are required to meet the packaging and labeling requirements set by Illinois law, including specific warnings and information set by the Illinois legislature. Complete alignment in packaging requirements would require collaboration between legislatures and/or federal guidance/law.
But Illinois, like many other states, is a member of the Cannabis Regulators Association (CANNRA), which was designed to foster collaboration between state regulators on many different aspects of cannabis regulation, including their packaging and labeling standards.
“States work together to learn about best practices, as well as understand other states’ laws, regulations, and practices,” said Johnson. “However, each state must still follow its own laws, set by their legislatures, and making standards consistent across states would require each legislature to act.”
Federal fix-all?
While states struggle to align on rules and regulations regarding packaging and all other aspects of commercial cannabis products, the federal government continues to drag its feet on cannabis reform. Cannabis banking is still fighting to gain traction in Congress, hearings on rescheduling cannabis in the Controlled Substance Act is still delayed, and full legalization still seems to be years if not decades away.
When President Donald Trump took office for his second term, there was optimism that his administration could push through cannabis reform, which would eventually create a unified regulatory framework for cannabis and open true nationwide commerce. But
James Ravitz, co-head of the lLife sSciences industry practice at McDermott Will & Emery, said given the mixed signals offered by current and future members of the Trump administration, it remains difficult to predict exactly where cannabis-related reform is headed in the near future.
“However, as federal cannabis regulations undergo significant changes, stakeholders should stay informed and involved in the rulemaking process, and businesses should continue to adapt to the evolving landscape to remain competitive and compliant.”
