With the global legal cannabis market expected to reach $73.6 billion by 2027, the cannabis industry is growing at an astonishing rate. Due to the legalization of medical and recreational cannabis in several states across the US and in other countries worldwide, demand for cannabis products is on the rise. Regulations governing their production, packaging, and sale have also increased as the industry expanded rapidly. To remain competitive and avoid penalties, cannabis companies, and packagers must prioritize compliance with packaging and labeling regulations.
At this very moment, bills are being reviewed and revised considering cannabis legislation.
Introduced in September of 2022, a bill proposed by Rep. Huffman aims to enable direct-to-consumer cannabis shipping and protect independent cannabis farmers.
In March, a bipartisan bill filed in Congress by Reps. Scott Peters (D-CA) and Doug LaMalfa (R-CA) aims to combat illicit marijuana growing on federal lands—framing it as a way to protect cannabis consumers’ health from the dangers of banned pesticides.
In order to maintain legal status, gain consumer trust, and avoid penalties, cannabis companies and packagers must comply with compliance laws. In particular, regulations surrounding packaging and labeling requirements for cannabis products are expected to become more stringent as legalization spreads.
Consequently, security seals and labels have become essential tools in the cannabis industry for ensuring compliance. Security seals, also known as tamper-evident labels, provide an additional layer of security to prevent unauthorized access to cannabis products during storage and transportation.
Hologram labels are also an effective tool to ensure compliance and consumer safety in the cannabis industry. A hologram is an easily recognizable and visible method of authenticating cannabis products. Their primary function is to determine if the product being sold is genuine. Hologram labels can also be designed to be tamper evident to indicate if the package has been opened or tampered with. The tamper-evident mechanism is a residue left on the surface once the label has been removed. This deters unauthorized access to the product.
In addition, holograms are easily recognizable and can serve as a visible form of authentication for cannabis products, helping to establish trust between the company and the consumer. By using holograms on their products, cannabis companies can demonstrate their commitment to compliance and consumer safety, while also differentiating themselves from competitors who may not prioritize these measures.
Tamper-evident labels are particularly effective at ensuring cannabis products remain safe and secure during transport and storage. By providing an additional layer of protection, tamper-evident labels assure consumers that the product they are purchasing is safe and has not been tampered with. In addition, tamper-evident labels provide visual indication that the product has been opened which may result in product contamination.
As the cannabis industry continues to grow, it is essential for companies to remain vigilant and proactive in meeting compliance regulations. This is to ensure the safety and satisfaction of their customers.
Additionally, non-compliance with regulations can cause significant financial and reputational damage to companies. In 2019, the California Bureau of Cannabis Control seized over 10,000 cannabis products due to labeling and packaging issues. This resulted in significant losses for the affected companies.
Getting ahead of compliance laws is also crucial for companies looking to establish themselves as leaders in the cannabis industry. As regulations become more stringent, companies that prioritize compliance are likely to gain consumer trust and loyalty. Additionally, adhering to compliance regulations can also help companies differentiate themselves from competitors, which is critical in an industry with numerous players.
The cannabis industry is rapidly evolving, and compliance with packaging and labeling regulations is essential for companies looking to succeed in this dynamic market. By investing in compliance and prioritizing responsible packaging, cannabis companies and packagers can establish themselves as industry leaders.
NovaVision offers a wide variety of high quality, tamper-evident security products. We can provide you with a custom solution that meets your needs. Visit novavisioninc.com or call (800) 336-6636 to learn more about our products and speak to one of our security experts.
