Cannabis packaging: How regulations make sustainability a challenge

Possibly one of the fastest growing trends in the cannabis industry is the demand for quality and compliant packaging. If you were at the most recent MJBizCon in Las Vegas, you probably had a hard time not noticing the slew of booths catering to consumer-facing companies and their various packaging needs. It is a hot topic for good reason: direct branding has become a key part of serious strategy, ad restrictions persist nationwide, demand continues to grow steadily, and companies are trying to remain compliant over multiple borders.

With everyone competing to stay more clever and innovative than their competitors, we are seeing an emergence of sustainable cannabis packaging initiatives throughout the industry. More and more companies are beginning to focus efforts on reducing their impact on landfills, oceans, and parks. A large portion of cannabis consumers are progressive millennials who are dedicated to changing the way we use our limited resources. They want their cannabis products to reflect that lifestyle.

Going green has become a planned business strategy to attract this rising demographic. For some, the cost of transitioning their cannabis packaging to sustainable canisters and boxes invites new patrons who are willing to spend more money promoting a healthy planet. Reaching them is difficult, though. With persistent ad restrictions on television, radio, and print, it can be tough to pinpoint marketing to specific groups. One effective method is through the containers and boxes that consumers use daily. Gone are the days of Ziploc bags and old film containers. You need only visit your local dispensary to witness the glamor of cannabis packaging that lines every shelf in the current market.

Packaging says a lot about the brand it represents. It offers an opportunity to connect with consumers on a personal level and strengthen loyalty. In this burgeoning industry, there are little to no long-established, dominant brands. That leaves a lot of market share open for companies hungry to command a lead.

Some of these companies are turning toward alternatives to traditional and non-recyclable materials as a way to stand out. They’ve traded in their heavy plastics for eco-friendly counterparts such as bioplastics, recycled cardboard, and glass. With the passing of the 2018 Farm Bill, we may see a rise in the availability of biodegradable materials that help to break the demand for wasteful plastics.

Hemp is a major resource when it comes to creating cannabis packaging alternatives, as it has a rapid growth rate, high cellulose, and requires little water. After legislation changed, Hemp Business Journal doubled their 2022 prediction of bioplastic sales to $27 million, and that’s no coincidence. These fresh options are invited with open arms into an industry that was founded by grassroots activists and wholesome hippies set on utilizing these benefits.

To say that the industry can be wasteful is an understatement. Nutrients, energy, water, chemicals, and packaging materials all contribute to a heavy burden. Some of the issues can be tied directly to state laws. Regulations on cannabis packaging and marketing can be extremely strict. Historically, the focus has been centered around excessive labeling, avoidance of product contamination, and keeping children safe. It offers a degree of transparency, accountability, and protection, but gives little attention to what happens after the product is sold or where it ends up.

Most of the time, it becomes non-biodegradable waste. In some states, the laws have created a Russian doll effect. For instance, Washington requires each product be packaged and labeled individually – meaning a pound of joints could require over 1,000 “doob tubes.” Joints inside of doob tubes; tubes inside of boxes; boxes inside of exit bags. It’s a lot of wasted material and a stark reminder of the need for more sustainable packaging options. Fortunately, with positive legislation and the growth of environmentally friendly alternatives, the cannabis industry may be able to right its trajectory toward a more progressive and sustainable future.

Buy hemp plastic, help spare landfills

A new report from the Centre of Environmental Law estimated that plastic pollution will contribute greenhouse gases equivalent to 850 million tons of carbon dioxide to the atmosphere this year alone. By 2050, it could emit as much as 14% of the earth’s remaining carbon budget. Yeah – plastic waste is a huge problem, and it’s no longer enough to recycle, reduce and reuse in 2019. 

As our hunger for convenience increases, we can’t realistically expect people to stop buying plastic altogether, right? Here’s where hemp comes in. 

Industrial hemp is being noticed as an ideal plastic alternative because of an organic compound called cellulose. Cellulose is the main substance found in plant cell walls which helps the plant to stay stiff and strong, and plastic, which is of course stiff, but malleable, relies on cellulose as the base of its makeup. But most plastic relies on cellulose from petroleum, a non-renewable energy source. Why? Essentially, it’s cheap and easy.

It’s totally possible to make plastic with other sources of cellulose – and hemp is, according to Cannopy Corporation, ‘the greatest cellulose producer on Earth.’ So, for Cannopy and other like-minded organizations, hemp presents a great opportunity as a sustainable source of plasticizing material. Thanks to its high cellulose content, hemp plastic can lend itself to virtually any shape and purpose – furniture parts, toys, packaging, and more. And of course, this is a super fast-growing renewable resource. Win win for us and the earth.

So why don’t we see more companies using hemp plastic? Basically, it would require a lot of new data, research and investment to be fully put to use in production and manufacturing industries. For example, Coca-Cola actually invested in hemp plastic bottles back in 2015 and apparently came to the realization that it would require too many changes in its production line. Obviously, Coke can invest major money into experimenting with production, but smaller businesses just can’t.

While hemp is ‘booming’ as an industry, we don’t necessarily have the adequate technology in place to meet a mass commercial demand for plastic. Hemp is still ‘niche,’ for all intents and purposes.

Coca-Cola bottles in between Sprite and another bottle

However, big names like Cannopy are working on creating hemp-based plastic solutions for any and all kinds of purposes, forward-thinking industries are noticing – carmakers like Ford, GM, Chrysler, Saturn, BMW, Honda and Mercedes are currently using hemp composite door panels and trunks, for example. These high-profile examples are a major step in the right direction – non-toxic, biodegradable plastic from hemp saves our dumps from a lot of refuse. The more we see hemp being used in mainstream products, the more accessible it can become.

Right now, a popular avenue for hemp-based plastic is for packaging materials – and plastic packaging is a major part of the world’s plastic problem, making up to 40% of plastic waste. A couple companies to keep your eye on – the Hemp Plastic Company, a Denver-based company which specializes in making hemp-plastic based packaging for any and all industries, and Sana Packaging, another Denver-based company which designs hemp-plastic, compliant packaging solutions for the cannabis industry. These up and comers are a reason to have hope that hemp plastic can find its way into the world.

We can talk about hemp plastic being the way of the future, but if you’ve heard of Henry Ford’s hemp car which was made back in the 40’s, you know that hemp plastic is by no means new. It’s always been a versatile, durable and valid a construction material. If you know, you know. Be one of the people who chooses to support hemp and lighten your carbon footprint. We’re here for you.

Minnesota Governor directs State Agencies to prepare for cannabis legalization

The governor of Minnesota has ordered state agencies to ready themselves for the advent of cannabis legalization — but many lawmakers think such a marijuana bill is unlikely to pass this year.

“My agencies have been tasked to put all of the building blocks in place, from Revenue to the Department of Public Safety to the Department of Health,” said Governor Tim Walz. “We will have everything ready to go, and we will be able to implement it in Minnesota the minute the Legislature moves this.”

But he faces a Republican-controlled state senate that seems dead-set on keeping recreational marijuana nice and illegal. “It’s my position that it’s not good for Minnesota. It’s dead as far as I’m concerned in the Senate for next year,” Republican Senate Majority Leader Paul Gazelka told Minnesota Public Radio. He cited concerns over dangerous driving, children getting their hands on the drug, and addiction issues.

Two legalization bills were presented at the beginning of the year by Senators Melisa Franzen and Scott Jensen and Representative Mike Freiberg. The similar plans would legalize use for adults 21 years old and up, and set up a licensing to taxing system, as well as one for regulating health and safety within the industry. Those proposals also include plans for social equity programs to address both the biased fall-out of the war on drugs, and services to take on driving under the influence of marijuana.

Last year, a legalization bill received a single hearing in the state senate before it stagnated. But marijuana advocates are already gearing up for 2020 legislative proposals, which many say could be more realistic should the Republicans lose seats in the mid-term elections.

House Majority Leader Ryan Winkler has already announced plans to be the main sponsor on such a bill. “It’s a big issue that needs a lot of attention to be done well,” he said about his decision to leap into the fray. He added that he would embark on a series of “listening sessions” around the state to see what Minnesotans’ primary concerns and hopes were in regards to legalizing cannabis.

“I think most of us who have looked at the issue think that legalization is the path we have to take,” Winkler said. “But I don’t want to prejudge that until we’ve had that conversation with Minnesotans.”

Few states have gone the legislation route when it comes to successfully regulating adult-use marijuana. In fact, Illinois has been the only place in the United States when such a policy change was not accomplished through a voter referendum.

Earlier this summer, a Minnesota Medical Association survey found that the majority of the state’s doctors consider recreational marijuana legalization to be a medically important issue. The same study showed that only 39 percent of Minnesota doctors oppose the legalization of adult-use cannabis. By March, Minnesota had 1,500 health care practitioners signed up to recommend medical marijuana to their patients.

Minnesota’s medicinal marijuana program started in July 2015, and was regarded as one of the country’s strictest. Patients with one of 13 qualifying health conditions lose their gun rights when they enroll in the program, and research suggests that there are more people dropping out of the program than are continuing to be enrolled in it.

Marijuana legalization: Does Texas support it?

Marijuana laws have been all over the place in Texas. Many states have passed laws permitting marijuana for medical use. While some states have decriminalized marijuana, others have legalized recreational marijuana. However, Texas has been strict with marijuana laws. So, what’s happening now?

Did Texas accidentally decriminalize marijuana?

In June, Texas passed a bill that legalized the production of hemp and hemp-derived products like CBD oil. However, the state might have accidentally decriminalized marijuana, according to a GQ article on August 20. According to prosecutors, the bill made it difficult for law enforcement to determine if a substance is hemp or marijuana. The new testing is expensive for law enforcement officials.

Difference between marijuana and hemp 

The THC level is the difference between hemp and marijuana. THC or tetrahydrocannabinol is the psychoactive ingredient. If the THC level is 0.3% or more, its marijuana. When the THC level is below 0.3%, it’s hemp. In an update in June, the Texas District and County Attorneys Association stated that the bill’s side effects passed. They said that the sudden execution of the law didn’t give crime labs in Texas the time or resources to differentiate legal hemp from illegal marijuana.

The prosecutor’s association and state crime labs said that they don’t have the resources to detect the TCH level correctly. As a result, hundreds of marijuana cases were dropped. According to the Texas Tribune, Travis County District Attorney Margaret Moore said, “I will also be informing the law enforcement agencies by letter not to file marijuana or THC felony cases without consulting with the DA’s Office first to determine whether the necessary lab testing can be obtained.”

Florida and Ohio accidentally decriminalized marijuana

Besides Texas, Florida and Ohio also unintentionally decriminalized marijuana. In June, Florida passed a bill to administer regulations regarding hemp licensing and cultivation. In July, Ohio passed a similar bill, which accidentally didn’t determine hemp from marijuana. The bill allows farmers to grow hemp. As a result, the bill legalized manufacturing and selling CBD products derived from the cannabis plant. Lawmakers have faced challenges in all three of the states.

Is Texas down for marijuana legalization?

Texas has been a pretty strict state when it comes to cannabis laws. Even possessing a tiny amount of marijuana can land an individual in jail in Texas. The penalties could get more severe. A Cato Institute report this week discussed how strict Texas has been with cannabis laws. In 2017, Texas made 62,057 arrests related to marijuana possession. The report said that arrests related to marijuana violations have increased from 6.8% to 8.2% since 2010. Therefore, passing the bill has been a challenge for law enforcement officials.

However, Republican leadership in Texas explained in a letter to the Texas District and County Attorneys Association that marijuana hasn’t been decriminalized in Texas.

Hemp business expands among cannabis players

The federal Farm Bill passed in 2018. The bill legalized regulated hemp cultivation. Notably, the Farm Bill removed hemp from the Controlled Substances Act. The bill allows the transfer of hemp-derived products to other states for commercial or other purposes. Since then, many states have chosen to legalize hemp. The states want to profit from the growing hemp market. Currently, around 47 states have passed some kind of hemp legislation.

Many cannabis players are also cashing in on the hemp business. Recently, Tilray (TLRY) finalized a deal with the largest hemp foods company. Tilray acquired Manitoba Harvest in February. The company introduced a wide variety of hemp-extracted products in the second quarter. Tilray’s earnings results haven’t been strong this year. The company has reported net losses. Overall, the stock has fallen 35.1% in August and 62.4% YTD (year-to-date).

Canopy Growth (CGC) (WEED) is moving forward with its plan to open a New York hemp-growing facility, which could boost the US CBD market. The company acquired AgriNext USA to advance its hemp business. Canopy Growth had disappointing results for the first quarter of 2020. The company’s top line and bottom line missed the estimates. The stock has fallen 28.0% in August and 12.5% YTD.

Aurora Cannabis (ACB) has been developing hemp-based products. The company acquired Hempco Food and Fiber’s outstanding common shares. Is the hemp business expanding amid trade war tensions? Read Hit by Trade War, Tobacco Farmers Turn to Hemp to learn more. Aurora Cannabis is scheduled to report its results next month. The company increased its revenue guidance for the quarter. Aurora Cannabis stock has fallen 10.8% in August. So far, the stock has risen 12.2% YTD.

Cannabis legalization

Some presidential candidates support cannabis legalization. The 2020 presidential election is heating up. Marijuana legalization is a significant policy issue in the election campaign. Will loopholes in legislation complicate the situation for the cannabis industry? Read Marijuana Legalization: Is the White House Warming Up? to learn more. Stay tuned with us for the latest news.