Tobacco Packaging Market Share, Opportunities, Industry 2031

Report Description

Tobacco Packaging Market Outlook 2031:

The global tobacco packaging market size was valued at USD 14.96 Billion in 2022 and is projected to reach USD 19.86 Billion by 2031, expanding at a CAGR of 3.2% during the forecast period 2023 - 2031. The growth of the market is attributed to the rapid urbanization, rising demand for flavored cigars, growing consumption of tobacco and e-cigarettes, and increasing demand for smokeless and raw tobacco.

Tobacco is an agricultural product procured by curing tobacco leaves. It contains nicotine, is addictive, and is highly used in the production of a variety of products, including cigars, cigarettes, and chewing tobacco. The packaging is a crucial part, as it acts as a moisture barrier and provides a safeguard against moisture. Additionally, it protects the packed tobacco from aroma transmission, deterioration, bacteria, and from any adverse environmental impact.

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These packaging products safeguard the freshness and sustainability of the product during the transportation period from harsh and uncertain conditions. The tobacco packaging industry consists of packaging dried tobacco leaves highly used for making cigarettes bidis, cigars, dissolvable tobacco, smokeless tobacco, and shishas. Packaging companies design attractive packaging products as per the regulatory guidelines to attract customers.

This creates significant business expansion opportunities for tobacco packaging suppliers, manufacturers, and distributors. The governments in several countries have adopted the idea of plain packaging to limit tobacco consumption.

COVID-19 Impact on Tobacco Packaging Market 

The global tobacco packaging market was negatively affected by the COVID-19 pandemic. It impeded the supply chains and distribution channels, as various governments around the globe implemented lockdown and ban on logistics.

The lockdown was imposed by several nations around the world to prevent the spread of coronavirus. Consumption of tobacco products harms the lungs. As a result, numerous cigarette businesses were compelled to shut down during the pandemic.

The decreased demand for tobacco products along with the closure of several retail shops selling tobacco products across the world hampered the market. The global tobacco packaging market faced huge losses, due to the decline in sales, production, and workforce, which has highly hindered the global tobacco packaging market growth across the globe.

Tobacco Packaging Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global tobacco packaging market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

Major Trends:

Growing demand for smokeless tobacco in the global tobacco industry is one of the key market trends

The rising consumer demand for smokeless tobacco, especially heated tobacco units (HTU), has propelled the demand for tobacco packaging. The rapid growth in the consumption of heated tobacco units (HTU) is attributed to the increasing consumer awareness regarding the effects of the consumption of tobacco products on health. Therefore, the growing demand for smokeless tobacco is expected to spur the sales of tobacco packaging during the forecast period.

Key Drivers:

Increasing consumer preference for tobacco products boosts the tobacco packaging market

The consumer preference for tobacco is growing, as it relieves anxiety and tension. This is leading to continuous innovations in nicotine content, ingredients, flavor, and size. The population in emerging countries is rapidly rising, which is driving the global tobacco packaging market.

The introduction of smokeless tobacco for chewing or dipping is projected to drive the tobacco packaging market. Changing lifestyles of people is contributing to the growth of the market.

High demand for flavored cigars drives the global tobacco packaging market

The rapid growth of the tobacco sector and the rising demand for flavored cigars are expected to propel the global tobacco packaging market in the coming years.

The increasing popularity of flavored cigars, the introduction of several cutting-edge packaging methods, and other factors are projected to drive the global tobacco packaging market during the forecast period.

Existing Challenges:

Stringent rules and regulations on smoking hamper the market growth

Stringent rules and regulations imposed on smoking, the several efforts undertaken for anti-smoking, and the increasing number of respiratory issues are projected to limit the market penetration of tobacco packaging across the globe during the forecast period.

Consumer awareness regarding cancer-causing chemicals obstruct the market expansion

Consumer awareness regarding the harmful effects of tobacco stifles the growth of the tobacco packaging market. High use of tobacco causes respiratory problems and mouth cancer, which is expected to hamper the growth of the tobacco packaging market.

Emerging Opportunities:

Growing popularity of e-cigarettes offer significant opportunities for the market players

The surging popularity of e-cigarettes among the youth within the age bracket of 18–25 is attributed to its easy usage, odor-free nature, cost-efficiency, low chemical content, zero ash production, and few health implications.

Moreover, the flavor of these products can be customized according to the requirement and tastes of users. The vivid graphics on the packaging assist in highlighting the unique flavors that are available in the market. These factors are anticipated to create immense opportunities for the market players during the forecast period.

Scope of Tobacco Packaging Market Report

The report on the global tobacco packaging market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Tobacco Packaging Market Segment Insights

The secondary packaging segment is projected to register high CAGR

On the basis of types, the global tobacco packaging market is segregated into primary, secondary, and bulk. The secondary packaging segment is projected to register high CAGR during the forecast period, as it safeguards the primary packaging and permits the grouping of primary packages during transportation, storage, and distribution. Secondary packing protects both tobacco products and the original packing.

The rapid growth of innovative cigarette boxes and the increasing consumption of cigarettes in social gatherings are expected to boost the segment during the forecast period.

The primary segment is anticipated to account for a major market share during the forecast period, due to the rising demand for secure and safe packaging. The main work of primary packaging is to seal the product and protect against product contamination via external or internal interferences.

It helps to serve the purpose of increasing the shelf life of a product. An efficient primary packaging prevents the product from getting damaged during the transportation and storage. Primary packaging is a crucial part of any tobacco product packaging; thus it aids in the segment growth.

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Paper box segment to expand at a robust growth rate

Based on material, the global tobacco packaging market is divided into paper boxes, paper, plastic, jute, and others. The paper box segment is expected to expand at a robust growth rate during the forecast period, owing to its cost-effective and environment-friendly nature.

Paper box packaging is a developing trend in the packaging industry and is gaining popularity in many developing countries. Paper box packaging is highly preferred by several manufacturers, due to the rising issues regarding the non-biodegradable nature of plastic and metal packaging.

The smoking tobacco segment is expected to grow rapidly during the forecast period

On the basis of end-users, the global tobacco packaging market is segregated into smoking tobacco, smokeless tobacco, and raw tobacco. The smoking tobacco segment is expected to grow rapidly during the forecast period, due to the high consumption of cigars, bidis, and cigarettes among consumers and the growing need for moisture protection.

However, the smokeless tobacco segment is anticipated to hold a key share of the market in the coming years, owing to the ease of accessibility of e-cigarettes, its odor-free nature, and low chemical content, along with the changing lifestyle and work culture of people.

No legal smoking age in some countries drags the youth into smoking. Furthermore, smoking is expected to alleviate the feelings of anxiety or depression, which is expected to drive the market.

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Asia Pacific is expected to dominate the market

In terms of regions, the global tobacco packaging market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projected period, owing to the growing anxiety or stress in work life and the growing demand for cigarettes or e-cigarettes among people in the region.

Moreover, the rising population in the countries of Asia Pacific presents a good customer base for tobacco products, which is expected to fuel the tobacco packaging market in this region.

The market in the Middle East is anticipated to expand at a rapid pace during the forecast period, due to the traditional use of shishas or water pipes and the growing demand for flavored cigars with high-quality tobacco.

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