Four States Legalize Marijuana, Paving Way for Packaging Hotspot

Update 11/15/16 at 10:21 a.m. EST: Ballotpedia is reporting that the results are confirmed as a "yes" in Maine's proposition to legalize the recreational use of marijuana, the New York Times has also reported that the bill has been approved. 

The presidential election wasn't the only pivotal moment in our nation's history this week. On Tuesday, three states voted "yes" to the legalization of the recreational use of marijuana. California, Massachusetts and Nevada joined the list of states that have already legalized the use of marijuana recreationally (Colorado, Washington, Oregon, Alaska and the District of Columbia).

Here's what you need to know:

• The results reveal that 56.04% of California voters, 63.3% of Massachusetts voters and 54.47% of Nevada voters backed the bill.
• Arizona also voted on the issue, which resulted in a 52.14% "no" vote.
• Maine, which could be the fourth state added to the list of states legalizing marijuana, is currently backing it, with a 50.2%  "yes" vote, although the votes are still being counted.
• Voters in Florida, North Dakota and Arkansas approved the use of medical marijuana.

With California being the sixth largest economy and most populous state in the country, CNN reports that California's "yes" vote could have a major impact on the decisions made in other states.

Packaging Perspective: So what does this have to do with packaging? Back in April, we spoke with Charity Cox, co-founder and creative director at Washington state-based Winterlife Cannabis, who stated that the marijuana industry's growth could be an impetus for more printers and converters to consider expanding offerings to include marijuana packaging as a means of revenue.

“Given that this is the very beginning of what is projected to be a huge industry that could very well be national in the foreseeable future, I think it is a smart and welcome move for printers to come on board,” Cox explained in an email to packagePRINTING in April.

Since then, we have now seen three — potentially four — states legalize recreational pot usage. As more states cast the "yes" vote in each election cycle, package printers and converters are faced with a real possibility of being able to dip their toes in the lucrative marijuana industry — we're talking $28 billion in tax revenues from a mature marijuana industry according to the Tax Foundation. Or more regionally, Merry Jane reports that Washington sold an estimated $257 million in 2015; Oregon expected $14 million in 2016; the District of Columbia brought in an estimated $700,000 from Nov. 2015 to May 2016; and California medical dispensaries sold "$2.7 billion worth of marijuana-related products, which accounted for almost half of the country’s legal sales" in 2015 and that was before it was legalized recreationally. Merry Jane goes on to report that the overall national market expects to bring in $7.1 billion by the end of 2016 and that it could be as high as $44 billion annually by 2020.

“This represents a monumental victory for the marijuana reform movement. With California’s leadership now, the end of marijuana prohibition nationally, and even internationally, is fast approaching," said Ethan Nadelmann, executive director of the Drug Policy Alliance, in a statement reported by The Washington Post.

The challenge, as Cox explained in April, is that some package printers and converters do not want to be associated with the industry, regardless of its money-making opportunities.

“Our current challenges as an industry where packaging is concerned, are rules set by the state mandating that all edibles and concentrates are separated into individual, child resistant servings and that there are some vendors who will not do work or sell to cannabis companies,” she writes.

Winterlife Cannabis has used traditional forms of folded cartons to market its edible products. Image courtesy of Winterlife Cannabis

While it's still a controversial industry, many brands are seeking mainstream packaging to facilitate consumer acceptance. If a company is hesitant to expand into the marijuana packaging industry due to the "stoner" connotation, it can look to Winterlife as an example of a company using folding cartons and labels that blend in seamlessly with other consumer products on shelf.

Cox also mentioned at the time that Winterlife was looking into the possibility of shrink wrap for joint tubes. If experienced converters were to partner with budding marijuana brands in the newly legalized states, they could be key resources in helping the brands meet regulations or child-proof requirements, similar to pharmaceutical packaging.

Label printers could also partner with marijuana brands to meet needs. Image courtesy of Winterlife Cannabis

Needless to say, in an industry that's not yet universally accepted, it is still a force to be reckoned with; one that package printers and converters may want to get on board with soon. With three states voting "yes" to recreational use and three voting "yes" to medical use, it looks like it's happening quickly and could be a packaging opportunity sooner rather than later.