MJBiz - July/August 2024 - 33

ENVIRONMENTAL ENIGMA
Cannabis consumers are environmentally conscious in their
purchasing decisions, but price is still the dominant factor.
According to Chicago-based cannabis data company
Brightfield Group, demand for sustainable marijuana
products is rising.
Brightfield research shows an increase in eco-friendly
shopping preferences among marijuana consumers, with
57.1% of respondents favoring them in 2023, up from
55.9% a year earlier.
Furthermore, 69% of cannabis consumers " sometimes "
or " often " purchase products with sustainable packaging,
and nearly a quarter (23%) are frequent buyers.
" Cannabis consumers, in particular, are going to resonate
with sustainable packaging and just sustainable practices
more broadly, " said Jennifer Kregor, Brightfield's vice
president of product.
SEEKING ECO-FRIENDLY PACKAGING
Cannabis consumers are attracted to all eco-friendly
packaging options, including plant-based materials,
biodegradable materials, plastic-free initiatives and
compostable choices.
Their top packaging preferences are:
* Recyclable (49%).
* Reusable (46%).
* Plastic-free (32%).
Brightfield's findings were based on surveys conducted
last year with 21,752 census-balanced U.S. consumers
and 4,786 U.S. cannabis consumers.
" Consumers really have to speak with their wallets and
be loud and clear about it, " he said. " Otherwise, change
doesn't happen. "
The Colorado-based edibles maker, which sells more
gummies than any other brand in the industry, for years
has utilized recyclable and biodegradable product
packaging.
DISPOSABLE VAPES REMAIN POPULAR
Despite their sustainability preferences, consumers also
are driving the boom in all-in-one vape devices, which
often end up in landfills.
San Francisco-based PAX Labs has made strides
to develop vape pens and related accessories that
can be used repeatedly by consumers, but the vape
manufacturer also understands purchasing habits, the
power of convenience and limitations on discretionary
income.
" One of the realities of operating in the cannabis industry
is that we all have to meet consumers where they are, "
said Laura Fogelman, spokesperson for PAX Labs, one of
the industry's biggest producers of vaporized marijuana
products and accessories.
" And one of the things that's become really clear over the
past couple years is that consumers really are gravitating
towards these all-in-one devices. "
MORE HURDLES
Cost constraints on packaging and materials-plus running
a highly regulated business with steep taxes-often limits
operators' ability to initiate more sustainability practices,
according to Mike Forenza, managing partner of
AE Global, a Miami-based custom packaging provider for
the cannabis industry.
" Every brand is saying they would definitely like to do it if
it was economically or commercially viable, " he said.
CASH IS KING
According to Brightfield data, nearly two-thirds of
cannabis consumers (65.3%) believe sustainable options
are too expensive, though that percentage slowly has
been decreasing since 2020.
Nearly 70% of cannabis consumers sometimes or often
purchase products with sustainable packaging.
Source: Brightfield Group Wellness Consumer 2023 data.
CONFLICTIONS AND CONTRADICTIONS
Citing its own research, Canadian cannabis producer
Tilray Brands has suggested consumers are 50% more
likely to purchase a marijuana product with sustainable
packaging than one without.
However, these sentiments often are dismissed at the
checkout counter if the eco-friendly products cost more,
according to Joe Hodas, who was promoted to CEO of
Wana Brands in April.
Unsurprisingly, overall product price is the top factor in
purchasing, with 75% of survey respondents ranking it
No. 1-well ahead of the No. 2 consideration, " desired
effects. "
That cost-consciousness has led to some gaps in
sustainable packaging adoption, despite a growing
commitment from consumers who extend their own
sustainability practices beyond cannabis products, such
as reducing waste and/or repurposing items, according to
Brightfield's Kregor.
" We're not seeing the trends of purchasing that we'd like to
for sustainability, " she said. " Finding ways to overcome the
concern for price is where the hope is. "
- Chris Casacchia
mjbizdaily.com | July-August 2024 33
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