Cannabis Labels Sales Set to Reach All-Time High

Perhaps few would have suspected it a generation ago, but the legalized use of marijuana, or cannabis, continues to grow through the United States. Currently, the medical use of marijuana is legal in 23 states, while use for both medical and recreation purposes is legal in an additional ten states. The initiative to legalize marijuana has created an extraordinary potential for sales. Forbes reports that worldwide sales of legalized cannabis are on target to hit $57 billion by 2027.

To be clear, U.S. law recognizes marijuana as the leaves, flowers, and seeds of the cannabis plant, and the two terms are often used interchangeably. But what does all this talk about marijuana have to do with labels? Everything. Regulatory, compliance, and warning labels for cannabis are required on all products. And with a multi-billion dollar industry, this translates into smokin’ hot opportunities for label sales in this budding industry!

Depending upon the regulations in a given state, the potential for compliance and warning labels can be huge. In 2018, marijuana dispensaries in California were mandated to have five distinct warning labels on every individual package of marijuana being sold.

  • A universal warning label with a marijuana leaf and an exclamation point inside a triangle.
  • A warning explaining that the products contained inside have not been tested according to new state laws.
  • Two government warnings—one for edibles, and one for other cannabis products. These labels alert users that the substance should be kept away from children and is only legal for those over 21, that they could be harmful to pregnant or breastfeeding women, and that caution is necessary when driving or operating machinery after use.
  • A warning label indicating that cannabis contains chemicals that might be cancer-causing.

Sound like a lot of labels? California isn’t the only state where labels are in high demand. Washington state currently requires a whopping nine labels on every product sold! And the requirements can and do change. This means dispensaries find themselves in need of new labels pronto in order to avoid getting into trouble with regulators.

Avoiding Hazy Information on Cannabis Products

Labels fall into two categories: information panels and primary panels. The primary panel on a product includes the name of the product, the cannabinoid content (the cannabis plant has over 480 natural components, of which 66 have been classified as “cannabinoids,” or chemicals unique to the plant), the item’s net weight, and batch number. They often bear a logo and aim to look appealing to customers on the shelf while not appearing too inviting. Regulations forbid any cannabis labels from mimicking candy or other products that might entice children.

Information panel labels, on the other hand, contain vital product information, including the company name and contact information, harvest date, “best used by” date, serving size, allergen information, nutritional information, instructions for use, as well as other important information. These labels must be thorough and follow individual state regulations.

Maureen Dowd, a New York Times columnist, wrote about a trip to Denver five years ago that included a sampling of a newly legalized cannabis candy bar. However, the candy bar lacked any information for usage. She nibbled a bit, only to find that nothing happened. She nibbled some more until she had unknowingly over-consumed the candy bar. What wasn’t made clear to Dowd on the shoddy and half-baked packaging was that the candy bar was intended to be cut into 16 servings. When the effects of the cannabis finally hit her, Dowd “lay curled up in a hallucinatory state for the next eight hours.” Clear labeling of Dowd’s candy bar certainly may have saved her the agony of waiting for the high to slowly wear off.

A Large Potluck of Products

Cannabis, both medical and recreational, comes in a number of different consumable forms. Some of the most popular include:

  • Smoking
  • Vaporizing
  • Medicated edibles, such as popcorn, crackers, lollipops, chocolate bars, and gummy bears
  • Tinctures or sublingual spray (squirted or sprayed under the tongue)
  • Transdermal patches
  • Topicals, including ointments, lotions, and sprays
  • Suppositories
  • Cannabis-infused beverages, including teas, smoothies, and juices

Again, all of these products require clear packaging and labeling. The relationship between manufacturers and labelers becomes a joint effort to market and package products according to regulations, ensuring proper and safe usage—clearly a jackpot opportunity for label sales!

Cannabinoid products are another huge market with the potential for increased label sales. Cannabinoids are products that contain CBD—cannabidiol—which is derived from the plant but does not contain the THC that causes the intoxicating effects of a marijuana high. The benefits of CBDs? Many people report feeling relaxed, and some swear by the natural health benefits of CBD supplements. CBD products are legal in all 50 states and are manufactured as candy, chocolates, syrups, lotions, gummies, vape products, soda, and even oil for pets, just to list a few. While these products don’t require the strict warning and compliance labels that cannabis products do, the number of CBD products available to consumers is growing like weeds, and all of them will need packaging and labeling.

Pipe Up and Snag Sales!

With a growing number of states legalizing cannabis, and a burgeoning market for CBD products, the potential to snag a piece of the label sales has never been easier. Reach out to manufacturers and dispensaries in your state to discuss how you can assist them with remaining compliant with required labels. Click here to find your state’s laws regarding label requirements on legalized cannabis products. If you have any questions, please feel free to contact Label Works. We have the information and tools you need to ensure your potential cannabis label sale opportunities don’t go up in a puff of smoke!

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