Tobacco Packaging Market

Tobacco Packaging Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Tobacco Packaging Market grew at a CAGR of 3.5% between 2017-2021 and is estimated to be US$ 14,987.6 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 3.2% and is expected to reach a valuation of US$ 20,536.6 Mn by 2032 end.

The market for tobacco packaging is anticipated to expand steadily throughout the course of the forecast period. A competitive and diversified market is the result of the ecosystem’s inclusion of important participants. The global tobacco packaging market is anticipated to grow during the study period due to the growth of digital transformation initiatives across several sectors.

Market Dynamic

RISING POPULARITY OF FLAVORED CIGARS PUSHES THE MARKET

The main driver of tobacco market expansion is that populations are growing rapidly in emerging nations. These people are becoming richer as economic growth begins to take off in most developing countries worldwide.

In developing nations, many people see smoking as stylish and cool. Women, in particular, have an increasing interest in smoking because they see celebrity women smoking and want to imitate them. This new generation of tobacco products is perceived as safer to use than before because of technological advances.

STRINGENT GOVERNMENT RULES MAY HAMPER THE MARKET GROWTH

The packaging market for tobacco has been witnessing obligatory regulations concerning avoiding attractive packaging and adopting plain packaging. According to WHO, plain packaging is a significant demand reduction evaluation that reduces the attractiveness of tobacco products, restricts tobacco packaging as a form of tobacco advertising and promotion, limits misleading packaging and labeling, and enhances the effectiveness of health warnings.

In addition, the need for tobacco packaging has significantly shifted toward plain packaging over the past eight years. Furthermore, the cigarette pack market went through severe competition among producers due to increased per-carton discounts given by the Chinese government on cigarettes in an attempt to keep cigarettes affordable and make them easily accessible to consumers

AN INCREASE IN R&D FOR SAFER PRODUCTS WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

Companies in the worldwide tobacco packaging industry believe that to maintain their credibility, they must offer products that consumers perceive as safer and healthier. They are investing much money in R&D because of this. Creating and marketing risk-free tobacco products is the goal. By doing so, they hope to convince low-income smokers that there is no need for them to continue smoking harmful effects or switch to the much cheaper but still deadly cigarettes without filters

Market Segments Covered in Report

By Product Packaging :

• Primary
• Secondary
• Bulk

By Material:

• Plastic
• Paper & Paperboard
• Others (Jute, Metal, etc.)

By Distribution Channel:

• Online
• Offline

By Packaging Type:

• Pouches & Sachets
• Bags & Sacks
• Boxes
• Others (Cans, Jars, etc.)

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why are Paper & Paperboard Tobacco Packaging projected to ensure the most revenue during the forecast period?

At 60.0% of the market, Paper & Paperboard Tobacco Packaging had the greatest revenue share. Paper-based packaging is relatively light and easy to handle, making it a good choice for tobacco packaging. It is well recyclable due to its high paper content, and its impacts on the environment are minimal. Sustainability is an important aspect of cigarette packaging materials. There are multiple alternatives to using plastic in cigarette packaging, such as paperboard, plastic trays, and cartons; they can be made from recycled material or virgin forests.

Why is the Secondary packaging expected to expand the fastest during the forecast period?

The Secondary Packaging Market is expected to witness significant growth in the upcoming years. Increasing demand for innovative cigarette boxes and rising consumption of cigarettes in social gatherings have driven the segment.

Tobacco leaflets, Special packing for cigarettes, Tobacco leaves and grounds, Cigarettes, and smoking accessories are the key focus areas of this secondary packaging segment. The auxiliary packaging is used for many purposes, like protection against extensive damages during transportation, storage, handling, and product sale.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• In 2021, the Asia Pacific market held a sizeable revenue share of 56.7%. Asia Pacific is expected to be the largest market over the forecast period due to rising economic growth, low smoking rates, and an aging population with high per capita incomes. China is the leading tobacco exporter and manufacturer in this region. Other Asia Pacific countries like South Korea, Japan, and India will likely witness similar growth as China by 2032 due to the increasing consumption of cigarettes and chewing tobacco. Also, the e-cigarette market is growing due to fewer harmful health effects than traditional tobacco smoking.
• The Middle East and Africa will likely witness an increased market demand over the forecast period. The growing trend of smoking various cigarettes is expected to boost the growth of the global market. Zimbabwe and South Africa are some countries where tobacco production is the primary source of income. Thus, the demand for tobacco products will likely boost sales volumes over time.

Competition Analysis

Major corporations are utilizing organic and inorganic development tactics to strengthen their position in the market by diversifying the products they provide. These actions have enabled market participants to increase their clientele and revenue. With the increasing demand for chlorinated solvents in the worldwide industry, market players in the Tobacco Packaging Market can anticipate attractive growth prospects in the future.

Some of the key developments that have taken place in the Tobacco Packaging Market include:

• In March 2021, Two state-of-the-art cardboard box manufacturing facilities in Madrid and Catalonia, Spain, were acquired by International Paper. Thanks to this merger, the company will be better positioned to serve industrial and e-commerce businesses with high-quality packaging solutions.
• In June 2021, By purchasing Peruvian paper-based packaging manufacturer Cartoons del Pacifico, Smurfit Kappa Group increased its presence in the region. By leveraging superior supply curves, operational systems, technology, and technical know-how, the organization can enhance its operations and better serve the needs of agricultural and industrial users.

A list of some of the key suppliers present in the market are:

• WestRock Company
• Amcor plc, International Paper Company
• Smurfit Kappa Group plc
• Mondi plc
• Innovia Films Limited
• Siegwerk Druckfarben AG & Co. KGaA
• Stora Enso Oyj
• ITC Limited
• Treofan Group.

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.