Cannabis brands spend years perfecting their strains and products, only to discover the hardest thing to grow is a label that satisfies regulators, retailers, and consumers all at once. But before getting into the labels and packaging, let’s have a look at the status of the legal cannabis market in the US.

As of 2025, 24 states plus Washington, DC, have fully legalized cannabis for adult recreational use, while 40 states allow medical cannabis in some form. Legal cannabis has come a long way since California legalized medical marijuana in 1996, and Colorado and Washington made recreational use legal in 2012. According to Forbes, nearly half the country now supports a licensed adult-use market, and most states provide medical access.

Looking ahead, momentum is building in states that haven’t yet gone fully legal. Cannabis Business Times reports 12 states are being closely watched for potential reform, including shifts toward adult-use legalization in Pennsylvania and Hawaii. At the same time, policy groups, like the Marijuana Policy Project, estimate that more than two-thirds of Americans support legalization reform – putting continued legislative pressure on the remaining states.

The legal cannabis market has matured fast – and with that maturity comes an increasingly sophisticated set of demands for labels and packaging, which brings together design, regulation, materials science, and profitability.

The global cannabis packaging market is currently measured in the low-to-mid billions with very strong future growth on the horizon, according to Emergen Research. Recent market reports put value estimates for 2024–2025 between roughly $1.8–$2.6 billion, with multi-year compound annual growth rates commonly reported in the mid-teens to high-20% range. That upside reflects expanding legalization and retail rollouts, rapid SKU proliferation as brands seek variety and seasonal product drops, and rising demand for higher-end, sustainable and compliant packaging formats.

Cannabis brand owners must balance strict, state-level regulatory requirements, rapidly evolving formats from pre-roll tubes to beverages – and premium shelf appeal – all while keeping cost and inventory under control. This creates both a set of challenges and opportunities for label converters that can offer materials science expertise, fast digital print capabilities, and food-contact-safe solutions.

For converters, the economics are straightforward: more SKUs + more regulation equals more labels and more short-run work. But the business is not pure volume. Brands pay premiums for specialized features such as child-resistant constructions, hot-stamp foiling, soft-touch and other tactile finishes, barrier films, and low-migration technologies. And converters that can supply tested, compliant, and on-demand cannabis labels capture higher margins and longer contracts. 

Converters targeting the cannabis market are leveraging their investments in digital presses and finishing equipment to reduce inventory, shorten lead times, and command higher prices. Margins in cannabis retail can be healthy, according to CannaBIZ Collects. The firm notes that retail gross margins often range widely, but estimates suggest more than 50% gross margins at retail in many markets. Packaging is positioned as an important overhead expense that can be optimized through smarter sourcing and on-demand production. For brands, every dollar saved in excessive inventory or reprints can improve profitability, thus explaining the strong, surging interest in digital short-run label production and variable data capabilities.

Beyond Branding

What differentiates cannabis from almost every other CPG vertical is the patchwork of state regulations. Label panels must often include THC/CBD potency by serving and by package, lot numbers and QR codes for traceability, specific warnings (pregnancy, operating machinery), child-resistant and opaque packaging rules for edibles, and sometimes mandatory symbols positioned in precise locations. The detail and format vary by jurisdiction, and non-compliance can mean product recalls or destroyed inventory. For converters, this means technical competence in variable data printing, secure artwork control, and quick-change management processes. 

Because of these factors, many cannabis brands and converters are moving to a modular label architecture – a base brand panel plus a separate, variable regulatory panel that can be printed digitally in short runs. This reduces reprint waste and keeps lead times short when a state changes its requirements.

Beyond basic branding and compliance text, cannabis labels and packaging must meet increasingly stringent safety and tamper-resistance standards, which continue to evolve as more states formalize their adult-use and medical programs. Nearly every legal state now requires cannabis products to be packaged in child-resistant (CR) and tamper-evident formats, aligning with US Consumer Product Safety Commission (CPSC) protocols – the same ones developed for pharmaceuticals and hazardous household products.

In practice, this means label converters serving the cannabis market must be able to provide or integrate tamper-evident seals, break-tabs, tear strips, shrink bands, or CR-certified flexible pouch systems. Many states – including California, Massachusetts, Michigan, and New York – also mandate opaque, resealable, or multi-layered packaging depending on the product category (edibles, vapes, concentrates, flower, etc). Labeling must remain legible and durable throughout the product’s lifecycle, with strict requirements for ingredient disclosures, allergen statements, batch and lot numbers, QR codes, potency data, and warning icons such as California’s universal THC symbol or Colorado’s THC diamond.

As regulators adjust policy to address product safety, mislabeling, and youth access concerns, enforcement is increasing. Several states (notably Oregon, Colorado, and New York) have introduced tighter restrictions on marketing appeal, prohibiting designs that mimic candy or child-friendly imagery. For label converters, these constraints reinforce the need for fully compliant artwork reviews, traceable production workflows, and materials engineered to withstand oil exposure, humidity, and friction, ensuring that critical safety information – especially potency and dosage – remains intact and readable.

Materials & Adhesives

Cannabis SKUs run an unusually wide range of substrates and environments. There are considerations for oil-rich vape cartridges, condensation on refrigerated beverages, humid growroom storage for flower jars, or long-shelf-life edibles on dispensary shelves. That variety makes adhesive performance and substrate compatibility a top technical selection criteria.

Converters must test adhesives for peel strength after cold storage, for resistance to terpene and oil migration, and for durability against abrasion from handling. For beverages and refrigerated SKUs, oxygen and moisture barriers in films and lamination choices matter. Also, for eco-conscious brands, demand for PCR and compostable materials is growing – but only when those substrates pass durability and compliance tests.

Material and ink suppliers are responding with targeted portfolios: low-migration inks and primers that are formulated for sensitive applications, wash-off adhesives for reusable containers, and specialty facestocks engineered for high humidity or oil exposure.

Low-Migration Inks, Food-Contact Safety

Ink and coating chemistry plays an important role in cannabis packaging, as many products – vapes, edibles, tinctures – involve food-contact and inhalation safety issues. As such, low-migration chemistries and validated curing processes are essential for converters aiming to supply the market.

Ink manufacturers are increasingly positioning low-migration and dual-cure systems as core cannabis solutions. These technologies reduce the risk of additive migration into product contents, and they enable printers to comply with brand and regulatory safety expectations without sacrificing on-press productivity. The adoption of LED curing, combined with low-migration UV chemistries, is a common route converters use to meet cannabis brand owners’ performance and compliance requirements. 

Digital printing technologies validated for food-contact can be especially advantageous in the cannabis space. Toner and dry-toner systems that are inherently dry and resistant to heat/solvent exposure have opened opportunities previously reserved for analog processes. For example, presses and toner platforms touted as “food-safe” or having the ability to produce highly abrasion-resistant labels allow converters to produce labels and flexible packaging for categories that were once constrained by migration worries. These claims and certifications can be decisive factors for brands.

Digital also solves a business problem: short-run variation, rapid SKUs, and versioning. Where once converters had to balance inventory and reprint risk, higher-speed digital presses now allow brands to do regional, regulatory, and promotional variations without plate or tooling costs.

Q&A: How a cannabis brand chooses its labels, packaging – and its converter partners

In an industry defined by rapid growth, shifting regulations, and intense scrutiny, few brand owners are as candid – or as cautious – as the founder we spoke with for this issue. The creator of a successful multi-state cannabis brand, he agreed to discuss his company’s label and packaging strategies on the condition of anonymity, citing ongoing regulatory sensitivities across several state markets. In this exclusive Q&A, “Cannabis Brand Owner” (CBO) offers a behind-the-scenes look at how a modern cannabis brand evaluates materials, navigates compliance, and chooses the right label converter partners in a sector where packaging is both a compliance tool and a crucial driver of consumer trust.

Label & Narrow Web (L&NW): The cannabis market moves fast, with new formats and regulations constantly emerging. How do you approach choosing the right labels and packaging for your products? 

Cannabis Brand Owner (CBO): It starts with understanding the purpose of each product – how it’s used, where it’s sold, and who’s buying it. A pre-roll tube has completely different packaging needs than an infused beverage or a premium eighth of flower. We map each SKU by format, regulatory requirements, and shelf interaction. From there, we decide what form factor fits: pressure sensitive labels for flexibility and speed to market, shrink sleeves for 360-degree branding, or cartons for higher-end items that need more storytelling real estate.

Another huge factor is compliance. Cannabis packaging is regulated at the state level, and every state wants things labeled a bit differently. So, we think about compliance at the same time we think about aesthetics – child-resistant features, opacity requirements, symbol placement, lot tracking space, you name it. The label isn’t an afterthought in this market; it’s basically its own product.

L&NW: Cannabis products often have very different surfaces – glass, mylar, aluminum cans, plastics. How does that affect your label material selection?

CBO: Material science is one of the trickiest parts of cannabis packaging. Mylar pouches can be finicky, especially if we’re hot-boxing them or heat-sealing them at the production facility. Flower jars are typically glass, but depending on the coating or finish, adhesives behave differently in humid grow environments versus dry dispensary conditions.

Sustainability is also part of our decision-making. We’re always looking at compostable or PCR materials, but only if they hold up structurally and don’t compromise print quality. We sell a premium product. If the label scratches, curls or wrinkles, that’s a problem. So we work closely with converters to test materials before we commit. We’ll run small batches, put samples in cold storage, heat chambers, UV exposure – you’d be surprised how many materials fail long before they reach a dispensary shelf.

L&NW: How much weight does branding carry in your packaging decisions?

CBO: Branding is everything in cannabis. You have dozens of brands competing for attention in a dispensary case, so your label must communicate quality instantly. With some product categories – vape carts or edibles, for example – the consumer is really buying the packaging first. We want consistency across the line but also enough variation that customers can identify product types and strains at a glance.

That’s why we lean heavily on embellishments: cold foil, metallic effects, matte and gloss contrast, higher-end varnishes. If a SKU is a hero product – like a limited drop or a collaboration – we might move to cartons with spot foil or soft-touch coatings. Those details matter in cannabis. They signal trust and craftsmanship.

L&NW: With a market expanding so fast, how do you ensure packaging agility?

CBO: Versioning. We need converters who can shift quickly, hold digital assets securely, and support short-to-medium runs with variable content. A strain can sell out in a month. Regulations can change overnight. Wholesale partners can request custom branding on short notice. Having a label supplier who can pivot with us is essential.

L&NW: What are the qualities you look for when selecting a label printer?

CBO: Three things: technical expertise, speed, and transparency. First, we want a partner who understands cannabis-specific challenges – adhesives that can handle oily concentrates, inks that won’t fade under LED display lights, materials that aren’t compromised by cold-chain distribution. A converter who’s already familiar with those pain points saves us months of trial and error.

Second, we look for speed – not just in turnaround times but in communication. If we’re launching a new SKU with three regulatory panels across multiple states, we need a converter who can get proofs back quickly, flag compliance risks, and help us avoid reprints.

Third, transparency. Cost control is huge. A good label supplier is upfront about lead times, material constraints, and pricing changes. We’re not looking for a commodity provider; we’re looking for a partner who will grow with us.

L&NW: How do the advantages of digital printing technology play in your packaging strategy?

CBO: Digital print is probably the biggest enabler for cannabis brands right now. Short runs, quick changes, strain-specific artwork, promo variations, versioning by region – it’s all made possible through digital. As more label companies invest in higher-speed digital presses and hybrid lines, we’re seeing quality equal to or exceeding other print methods for our needs.

Digital embellishment is also a game-changer. Being able to add foil or raised effects without tooling costs means we can elevate limited drops without blowing up the budget. And because digital platforms hold color so consistently, we get uniformity across batches. This is important for brand perception.

L&NW: As you’ve expanded into beverages, edibles, and other cannabis and wellness categories, how has your packaging strategy evolved?

CBO: These segments come with more scrutiny – food safety, migration concerns, expiration labeling, tamper-evident requirements – so we’re more selective with materials and coatings. For beverages, shrink sleeves are our go-to. For edibles, we lean toward higher-barrier pouches with digital overprints for flexibility. For wellness tinctures, we’re using a lot of premium papers and specialty labels, because that audience expects a certain elegance.

L&NW: What advice would you give converters who are trying to grow in the cannabis market?

CBO: Learn the regulations. Understand the production environments. Invest in materials that handle moisture, oils, temperature swings, and rough handling. Be ready to manage a large  number of SKUs, lots of artwork changes, and very fast timelines. But above all, be collaborative. The brands that win in cannabis are the ones who partner with vendors that are willing to test, experiment, and innovate with them. If you’re willing to solve problems with us – not just print labels – you’ll have a loyal customer for years.

Differentiate Yourself With The Industry’s Best-Kept Secret

With an estimated growth of 6% over the next eight years, shrink sleeve labels are considered now more than ever for several reasons: durability, moisture resistance, tamper-evident features, and the unique ability for full-body labeling. Utilizing holographic effects brings your label to its fullest potential by complementing and elevating the design aesthetic to create a stunning visual impact. Most importantly, holographic effects add to shelf appeal, driving customer engagement.

Partnering with K Laser Technology offers you the most expansive shrink sleeve catalog of holographic embellishment options comprised of both colors and patterns.

But we don’t stop there. Let us do the heavy lifting for you to help you land the account with our unique mock-up and prototype service. Our team in the Design Lab will create a physical mock-up, including the holographic effects, that will be sent to you to share with the decision-makers. All done in-house, without wasting machine time.

Contact K Laser Technology for more information:

coldfoil@coldfoil.com
941-500-1370
www.coldfoil.com

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