Cannabis businesses incorporate reused materials into packaging

(This story is part of the cover package in the July-August issue of MJBizMagazine.)

Though hard figures are difficult to confirm and quantify, the regulated marijuana industry produces an enormous amount of waste.

In 2020, the National Cannabis Industry Association estimated marijuana byproducts in landfills were increasing carbon dioxide emissions at a staggering 27,876 metric tons per year.

According to a study that same year in the science journal Industrial Crops and Products, researchers concluded waste biomass produced by the U.S. cannabis sector in 2020 would have been roughly 1,754 tons of fresh waste, or 520 tons of dry weight waste.

This outdated figure didn’t even account for packaging waste, which potentially could exceed the estimate for waste biomass.

“It’s visible for everybody that sustainability is something that you need to have,” said Mike Forenza, managing partner of AE Global, a Miami-based custom packaging provider for the cannabis industry.

“Your product is really the first step to say, ‘We’re trying to be as sustainable as we can.’”

Cannabis packaging alternatives

All-in-ones, or disposable vape products, have surged in popularity the past few years, driven by cost, convenience, mobility and, to a lesser extent, cannabis tourism.

According to Seattle-based cannabis analytics provider Headset, the disposable vapes category in the first quarter of 2024 accounted for 29% of all vape pen sales across the U.S. markets it tracks and nearly 15% in Canada.

However, these products are far from disposable and often end up in landfills.

Their plastics are frequently nonbiodegradable, and their batteries are flammable.

Some cannabis businesses are seeking better solutions.

“We spent a lot of time trying to think of how we could come up with something that offered consumers a better alternative,” said Laura Fogelman, spokesperson for PAX Labs, one of the industry’s biggest producers of vape cannabis products and accessories.

In April, the San Francisco-based brand released the PAX Trip, its first product made with reclaimed and recycled ocean-bound plastic.

The PAX Trip initially launched in California and Massachusetts, while expansion is underway in Colorado and New York.

“We wanted to put less virgin plastic out into the world,” Fogelman said.

As part of that mission, the company partnered with rePurpose Global to become one of the first cannabis brands to achieve plastic-negative certification across all its product lines.

Under the partnership, for every bit of plastic PAX utilizes – calculated by weight – the company funds the removal or reclamation of twice the amount of plastic from nature.

“The more that brands can bring awareness to the conversation and move in this direction – and get consumers to ask themselves these questions and make responsible choices – the better we’ll be positioned for the future,” Fogelman said.

“This needs to happen along every segment of the supply chain.”

Sustainable cannabis leaders

Other large operators have been implementing more sustainable packaging initiatives as well.

MJBizDaily reported in October that Canadian cannabis producer Tilray Brands started converting some of its packaging and product components to hemp to minimize the employment of single-use plastics that end up in landfills.

In a conference call with analysts in January 2023, Tilray CEO Irwin Simon said the company planned to divert 158,000 kilograms (158 metric tons) of plastic from landfill sites last year before launching the program.

Tilray, which launched efforts last summer, has diverted approximately 131,000 kilograms of plastic waste from landfills, while its Good Supply brand has prevented more than 925,000 kilograms of plastic from reaching landfills – a sevenfold increase in the past year or so.

Oregon-based Wyld, which competes with Colorado-headquartered Wana Brands for the market-share lead in gummies in several states, introduced a fully compostable pouch in 2021 to meet regulatory requirements entering the Canadian market.

It has launched similar packaging with select cannabis-infused and CBD products in the U.S. market.

In 2022, Wyld launched its Good Tide brand packaged in a fully recyclable and compostable paper tube.

Some products also have a compostable liner to enhance freshness.

That same year, the company earned a climate-neutral certification after measuring and offsetting its carbon impacts from operations, an analysis conducted through a third-party audit.

Wyld has dedicated significant resources to improving sustainability in its mission to eliminate single-use plastics.

“There has been a large amount of capital invested in developing compostable packaging. That’s not going to always be the best fit or the right answer for every business,” said Ben Gaines, vice president of marketing for Northwest Confections, Wyld’s parent.

“We want to replace all single-use plastics in our packaging stream, but we’re encountering well-established speed bumps and hurdles.

“Mainly, it comes down to material science and matching food and barrier properties that meet our standards for quality.”

Sustainable packaging solutions

Startups such as Ecoshell, formerly Spark Sourcing, are entering the market with potential solutions to reduce plastics, carbon emissions and/or eliminate the introduction of new, or so-called “virgin plastics.”

The company, which has manufacturing operations in Taiwan and production partnerships across Southeast Asia, is testing custom package designs for three cannabis companies.

“We should be moving forward on those within a couple of months,” CEO Andrew Bliss said.

Ecoshell, which has been certified for plastic, carbon and waste reduction, was established last year in New Brunswick, Canada, to serve the North American market.

In October, it introduced the eco-shell, a patented material comprised primarily of eggshells and converted to pellets through a seven-step process.

The resulting material, according to the company, can replace up to half of plastic content in a variety of products.

It costs about 5% more than utilizing virgin plastics, Bliss said.

“I know that profit margins are tiny with the cannabis industry.” he added.

“We think we have the solution for cannabis brands because they want to be sustainable, but they just can’t afford it.”

Coastal cleanup

Massachusetts-based edibles maker Coast Cannabis Co. recently partnered with AE Global on the packaging company’s efforts to recover plastic from the ocean and convert them to sustainable packaging.

In June, the company launched a cannabis-infused chocolate bar with packaging made from recycled ocean plastics.

“There is so much waste with cannabis packaging, and since we don’t see regulations changing to allow for less packaging, we have to look at ways to minimize our environmental impact while remaining compliant,” Coast co-founder and CEO Angela Brown said.

“We saw this as a way to do just that.”

AE Global, which aims to reduce plastic waste by investing in waste-management infrastructure worldwide, provides custom packaging solutions, supplies and labeling for cannabis businesses.

Sustainability tips

While economics and other regulatory challenges are squeezing cannabis brands nationwide, there’s a few steps they can take to improve sustainability and potentially lower costs at the same time, according to AE’s Forenza.

Overpackaging is one easy area to address, so consider eliminating boxes that hold jars of flower – or even the jar itself – and opt for a single bag or pouch, he suggests.

“It really has to do with way more things than just the materials you’re using as far as being more sustainable,” Forenza added.

“When I think about brands that want to have a sustainability story that also is in line with the capital structure of what they need to be competitive, rightsizing your product and packaging – and making sure that you’re not overpackaging your product – is really the first step.

“There’s very, very few brands that are making a big push into this, considering the economic climate and the uncertainty.”

Chris Casacchia can be reached at chris.casacchia@mjbizdaily.com.