Automation is Streamlining Cannabis Packaging

Automated packaging technology is steadily making its way into the cannabis sector.

By Alain Vo, CEO of LeafyPack

Automation in packaging is nothing new. For decades, machines have been automatically forming, filling, and sealing packages for a variety of products and industries. The cannabis industry, on the other hand, is still in its infancy. And when it comes to packaging, it often lags behind other industries that leverage automation. As it stands, many small to midsize cannabis businesses are still filling bags by hand.

That said, will automation be the next frontier in cannabis packaging? Here’s why it should be.

Labor Shortages

According to the U.S. Chamber of Commerce, we are missing 1.7 million Americans from the workforce compared to February of 2020. In fact, the U.S. currently has 8.5 million job openings. This labor shortage is a major detriment to those in the cannabis industry that rely on manual labor to package products.

In particular, the high turnover associated with temp agencies and manual laborers is a crucial challenge. These workers often receive low wages, leading to a situation where they may work for a few weeks before either not returning, finding the work too difficult, or encountering other obstacles that prevent them from continuing. This inconsistency makes it difficult to maintain a steady workforce for tasks like manual packaging, resulting in a turnover rate where employees rarely last beyond a year.

In most cases, automation equates to efficiency. It’s more efficient to have one skilled employee managing a packaging line, potentially replacing a dozen workers engaged in manual tasks. Although the salary of a management-level employee may be higher, it’s easier to maintain and satisfy such employees, especially those in higher-level positions, compared to laborers. So automation actually increases productivity, lowers labor costs, and can even boost employee satisfaction.

Consistency in packaging

Another issue cannabis brands face when not leveraging packaging automation is inconsistent packaging. When human beings are placing labels on jars, not every jar is going to have a uniform look. Likewise, bags may be sealed in various ways — or burnt — simply due to human error.

Automation ensures uniformity in sealed bags, prevents burns or wrinkles, ensures correct labeling on jars, and packs products consistently, avoiding issues like overpacking or under packing. Just as important, the quality of packaging reflects on store shelves, enhancing product appeal and customer perception.

Production time

It’s no surprise that manual labor is much more time consuming than automated technology handling the filling and sealing of goods. Cannabis businesses that have yet to adopt automation into their packaging processes are more prone to falling behind the competition. Automation significantly accelerates production timelines compared to manual processes, leading to quicker time-to-market for products.

Forming, Filling and Sealing Packages

An excellent example of efficient packaging automation for cannabis products is a flow wrapping machine. This type of machine, commonly used for candy bars or cookie packaging, offers substantial cost savings by eliminating the need to purchase pre-made bags. Instead, it forms bags from a roll stock of film. With a large enough roll and high production volume (upwards of 200 bags per minute) the cost per bag can be as low as half a penny.

The flow wrapper is ideal for flat items like chocolate bars, while vertical form, fill, and seal machines are perfect for products like gummies, vapes or flower. Likewise, horizontal form, fill, and seal machines create pre-made mylar bags, complete with zippers and gussets, providing a professional appearance on store shelves.

Take a look at an example of one MSO (Multi-State Operator) that was initially using manual labor for bagging their edibles. After adopting the right automated packaging technology, they were able to scale from 3,000 bags per day to 9,000 bags per day within a week of installation. As of now, they are processing around 12,000 to 13,000 bags daily, a volume they can manage thanks to their established sales channels and their existing gummy depositing machines. Via automation, the company’s packaging bottleneck has been effectively resolved.

Three Things to Consider Before Adopting Automation

1. Have the right personnel

​​Finding skilled personnel to operate packaging machinery is crucial. Many companies, especially small owner-operators, rely on themselves to run these machines, which can be challenging without prior experience. While any decent automation technology company will provide thorough training, having an experienced operator is beneficial due to the complexities of managing scales, baggers, assessors, and packaging machines effectively.

2. Know your production volume

Automation is best suited for businesses with a high production volume. For instance, for gummy production, if your output is below 15K – 20K bags per week , I wouldn’t suggest immediately exploring automation options. Instead, assess your production forecast for the next six to twelve months. If there’s no substantial increase anticipated during that period, it may not be the right time to invest in a machine. It’s important to ensure readiness and alignment with your production scale before considering automation.

3. Understand label compliance

In the cannabis industry, printing batch dates, sell-by dates, and the like are crucial to remaining compliant. Yet, companies often have varying printing practices. Some print extensive information — like metric codes, batch numbers, lock codes, best before dates —spanning around 12 lines on boxes or bags, which can slow down high-speed automation setups.

In contrast, non-cannabis industries typically limit information to three to four lines to maintain speeds of 35 to 45 units per minute. In cannabis, however, there’s a trend towards more detailed labeling, including QR codes and barcodes. This poses a challenge in balancing compliance requirements with operational efficiency. To address this, companies should prioritize essential information and consider pre-printed bags for non-essential details.

Final Thoughts

Automated packaging technology is steadily making its way into the cannabis sector. I believe this movement will lead to the rapid scaling of individual businesses, yes, but also the cannabis industry as a whole.

Automation offers a strategic advantage by allowing businesses to lower costs, thereby increasing profit margins compared to labor-intensive processes and, essentially, future-proofing their business. It’s an exciting time in the cannabis packaging field, and I’m looking forward to all that’s to come in the near future.

About the Author

As the CEO of LeafyPack, an innovative automation machinery supplier for the cannabis industry, Alain Vo has spearheaded advancements in packaging technologies over the past five years. He focuses on enhancing output speeds and integrating innovative features while upholding world-class service standards. His career in the cannabis sector extends beyond. LeafyPack, having previously contributed to the development of LED grow lights, demonstrating a longstanding commitment to industry innovation. Visit leafypack.com.