Opportunities for Cannabis retailers to increase ROI by investing in packaging

The cannabis industry is growing rapidly in the United States, with the market expected to hit $41.5 billion by 2025, and producers are competing to stand out in a crowded, heavily regulated marketplace. In a regulated industry with limited marketing options, it’s almost impossible to build a brand the traditional way, making marketing tactics like packaging paramount for influencing consumer purchasing. In fact, according to recent research by Physis + Agency, consumers are willing to pay up to 26% more for premium packaging, signaling a significant opportunity for cannabis producers to enhance brand value and drive sales through strategic packaging investments and partnerships.

Just as premium packaging has helped brands in the alcohol space capture new audiences and differentiate, that same research commissioned by Roland DGA from Physis + Agency and Censuswide suggests the same rings true in the cannabis industry. More often than not, wine consumers pick a label to pick a bottle. A similar pattern has emerged amongst cannabis consumers who pick packaging to pick a product. According to the research report, combined perceived quality of the flower, brand, and packaging lead as the primary reasons to purchase a cannabis product. All of this to say, brand matters, especially when it comes to cannabis. 

Cannabis producers and packaging experts can grow together (pun intended) to put these data learnings into action. Not only does packaging present an avenue for brand building in the cannabis space, but a focus on branding for cannabis producers means potential partnerships between packaging experts and cannabis industry insiders. 

Putting data into action: case study from House of Cultivar

With these data learnings in mind, Roland DGA partnered with Seattle-based cannabis producer House of Cultivar (HoC) and print company Gold Leaf Printers to test the data through a limited-run edition of cannabis flower. It was called Lobster Roll, and it was gorgeous. The product was an addition to HoC's line of specialty cannabis, Colors by Cultivar, which draws inspiration from the visual beauty and variety within cannabis genetics. HoC chose Lobster Roll to represent this limited strain drop with more brand-focused packaging that highlights their brand system with its vibrant color palette. In doing so, they struck a match between the artistry behind the cannabis flower itself and its unique packaging design.

In the heavily regulated cannabis industry of Washington State, HoC faced the challenge of creating packaging that was not only child-resistant, opaque, and resealable but also reflected their brand identity and showcased the beauty of their products. To meet this challenge, the company partnered with Roland DGA and Gold Leaf Printers to design a package that was both unique and functional.

Lobster Roll was packaged in a premium jar that stands out in the crowded retail environment. The jar is taller than the industry average and has a substantial lid, making it more noticeable and easier to handle. The label is custom printed using a Roland DG TrueVIS UV printer/cutter and shaped with textured, raised UV ink and a holographic substrate. The Colors logo is built in a three-dimensional neon light tube shape with textured UV ink built up in layers to enhance the spatial effect. The packaging design reflects the brand values of House of Cultivar as well as the artistry behind the product.

House of Cultivar invested in their brand by focusing on packaging. And in doing so, HoC experienced a brilliant return on investment. Within two weeks of Lobster Roll’s launch, all 250 units of the limited-edition run sold out. At an increased packaging cost of $1.05 per unit and an increased wholesale price, House of Cultivar predicted a 405% - 1,330% increased ROI for Lobster Roll. 

The takeaways 

By collaborating and using data-informed product packaging solutions, House of Cultivar and Roland DGA have shown that cannabis producers can significantly increase their ROI by investing in their brands. 

In partnering with local printers, cannabis producers can create high-quality packaging that adheres to local laws and regulations. This not only helps to establish their brand identity and increase brand recognition, but also ensures that their products are easily distinguishable from competitors. In addition, working with local printers may also result in cost savings and faster turnaround times, ultimately leading to increased revenue and growth in the cannabis space.

To remain competitive and thrive in the rapidly expanding cannabis industry, cannabis producers and packaging companies must prioritize data-driven product development and strategic collaborations to grow their brands and customer base. Partnership equips small-scale cannabis producers to invest in their brands by investing in packaging. And in doing so, they can command higher prices and connect with consumers. On the packaging side, as the industry continues to grow, partnering with local Cannabis producers presents opportunities to innovate in a rapidly changing industry.