Industrial hemp has been used extensively in making different kinds of useful products such as clothing, food, cosmetics and many more. These hemp products are made from the fiber produced by the plant, which can also be used to make paper, rope and twine. The demand for all these products is growing rapidly due to increase in population and rise in disposable income, which has led to growth in the market for hemp products globally. As a result of this growing demand, there has been increased focus on custom hemp packaging boxes from manufacturers worldwide.
The growing number of e-commerce platforms in North America and Europe has driven custom cbd packaging boxes demand in the custom hemp packaging boxes market. The trend has increased focus on branding through product customization. Companies selling apparel, food and other consumables are more likely to sell products via online platforms than via traditional brick-and-mortar retail outlets. As a result, custom cbd packaging box manufacturers witness a surge in demand for their offerings, thereby providing avenues for revenue growth.
Drivers, Restraints, and Challenges of the Industry
Well, one of the major drivers for the custom hemp boxes market is increasing demand from the food & beverage sector. A rising trend towards natural & organic products in the food industry to meet end-user demand has been a key driver for hemp packaging boxes during the past few years.
Hemp packaging boxes are preferred by many food and beverage companies as they can deliver a strong sustainability message along with robust protective attributes such as being recyclable, biodegradable and compostable. Additionally, hemp paper has other benefits over traditional wood pulp paper such as reduced energy consumption, lower water usage and less pollution. Consequently, there is also huge potential for custom cbd packaging in the CPG (Consumer Packaged Goods) sector in near future.
Increasing popularity of the private label and rising awareness among consumers regarding product customization are expected to be major factors that have driven growth of custom hemp boxes. According to data provided by Hemp Business Journal, global sales value of products using packaging material made from industrial hemp has doubled in years between 2011 and 2014, with retail sales rising from $180 million in 2011 to almost $400 million in 2014.
Further boost in growth can be expected from legalization of cannabis for both medicinal and recreational purposes across various countries. For instance, according to a report published by Arcview Market Research, legal marijuana sales were projected to grow at an astounding 17% annually through 2021 on account of legalization of cannabis for adult recreational use in California.
As per a new report by Transparency Market Research (TMR), Custom Hemp Boxes Market is anticipated to achieve considerable growth in coming years on account of growing demand for herbal and organic food in various regions of North America, Western Europe, Central & Eastern Europe, and Asia-Pacific. The rising awareness regarding health benefits associated with CBD products has fueled growth of the custom hemp boxes market.
Hemp’s long fiber is used in production of high-quality CBD products such as paper, textiles and biofuel. This fiber can also be used to produce clean biomass or renewable energy for power generation. Growing application of products made from industrial hemp fiber in the renewable energy sector is expected to create lucrative opportunities for global hemp packaging boxes market players.
The custom cbd packaging market is at a very nascent stage in India. About 1,500 tonnes of hemp was imported in 2016-17 and it was increased from 2,000-3,000 tonnes in 2017-18. The government has approved setting up 25 Industrial Hemp Processing Plants (IHPPs) under NITI Aayog. Each IHPP is expected to process 600 tonnes of industrial hemp per annum to produce fibre, fabric & yarns which can be used as raw materials for various industries including textiles, paper & plastics.
In conclusion, many key vendors are focusing on innovations and new product launches to enhance their customer value. For instance, in September 2016, Hemp Inc introduced its first-ever line of CBD products. These included a topical salve, topical lotion, and a pet supplement tincture. Over the 2018-2021 period, there was an increasing demand for these packaging materials that stimulated growth of the Custom hemp Boxes Market. One of the major factors is the economic prosperity of the Asia Pacific region which accounted for over 35% share in global end users in 2017 and is anticipated to maintain a positive growth trend during the forecast period. This will create robust opportunities for companies operating in hemp Boxes Market.