Investing in the Cannabis Industry: How Packaging Can Impact Your ROI

When investing in any part of a business, it’s important to consider whether you’ll get a good return on that investment. While many think only of investment opportunities in cultivation and retail dispensaries, the cannabis packaging industry represents an important yet sometimes overlooked part of the supply chain.

With packaging, you’ll have upfront costs for materials, printing services, or marketing updates. Making it crucial for you to examine what it takes to implement new packaging and how it can boost various business areas. The goal is for packaging to generate higher profits or savings that surpass what you invested.

Compliance

Different states have their own regulations. They mandate things like childproof designs, detailed ingredient labels, and warnings. On top of that, the packaging must protect the cannabis from light, moisture, and air.

With all those legal requirements, trying to make your products stand out visually can feel limiting. However, there are still creative options if you think outside the box. Materials like hemp, wood, or glass can give your packaging a unique look compared to plastic or paper.

Some of the newer child-resistant styles from companies like Futurola offer cutting-edge compliance. You can also opt for multi-purpose designs, like pre-roll boxes that hold a lighter. The one-time cost of compliance also enables ongoing operations without the risk of fines or legal troubles. This provides cost savings and stability that support an optimized ROI over time.

Quality

The quality of your packaging is also essential. Customers will also think the product is cheap if it looks or feels cheap.

Consumers are inclined to purchase and spend more on items boasting high-end packaging. Work with a print specialist equipped with modern printing technologies so labels and boxes have a neat, polished look. Utilizing premium stock, such as heavyweight paper, gives a refined look and feel.

Design

Design is fundamental to attracting people’s attention. Your packaging needs to stand out on shelves and communicate your brand. However, designing for weed products can be challenging because of the many legal regulations. So, before working with a designer, define your brand strategy and positioning. Think about the message you want to send. This will enable the designer to bring that vision to life compliantly through thoughtfully crafted visuals and language. It’s best to work with a graphic designer experienced in this industry. They know how to catch attention within the guidelines.

Sustainability

Many cannabis consumers are becoming more environmentally conscious. Sustainable packaging aligns with these preferences and can attract customers willing to pay more for greener options. This helps increase revenue and margins.

Highlighting sustainability efforts through packaging improves a company’s ESG (environmental, social, and governance) profile and reputation. This can make the brand more appealing to investors and open up opportunities for partnering with other eco-friendly companies

Brand Recognition

Packaging can help increase brand recognition and awareness. By incorporating branding elements like your company’s logo, colors, fonts, and messages about your brand’s identity, history, or values, packaging introduces potential customers to who you are in addition to what you sell. Consumers who connect with your brand are more likely to purchase from you again over competitors.

Endnote

Following the tips provided above can help increase consumer demand and drive higher revenue. As marijuana becomes increasingly legalized worldwide, companies with innovative packaging ideas that follow the rules will be positioned for continued expansion and profit.