Market Size of Tobacco Packaging Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 3.32 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Tobacco Packaging Market Analysis
The tobacco packaging market is expected to register a CAGR of 3.32% during the forecast period. Continuous product innovation in terms of ingredients, nicotine level, flavor, and size, coupled with consumer preference for tobacco as a recreative habit to reduce stress and anxiety, is propelling the adoption of tobacco and resulting in the market's growth.
- Owing to the growing consumption of cigarettes and tobacco, the market for tobacco packaging is witnessing considerable growth. Nearly 6.5 trillion cigarettes are sold worldwide yearly, which translates to roughly 18 billion cigarettes daily. Furthermore, there are 1.1 billion tobacco consumers globally, according to the Action on Smoking and Health (ASH). This number is anticipated to grow to 1.6 billion over the next two decades.
- Furthermore, the packaging market for tobacco has been witnessing mandatory regulations regarding avoiding attractive packaging and adopting plain packaging. The need for tobacco packaging has significantly shifted toward plain packaging over the past eight years. According to WHO, plain packaging is a considerable demand reduction measure that reduces the attractiveness of tobacco products, restricts tobacco packaging as a form of tobacco advertising and promotion, limits misleading packaging and labeling, and increases the effectiveness of health warnings.
- Significant market growth will also result from the rising popularity of flavored cigars, the rise in obesity rates, the introduction of numerous cutting-edge packaging methods, and other factors. However, the increase in government regulations on smoking, the number of anti-smoking efforts, and the rise in various respiratory ailments may, to some extent, limit the product's market penetration.
- The spread of COVID-19 has impacted the tobacco packaging market negatively, as the disease attacks the lungs, and people are prohibiting the use of products and behaviors that weakens the lungs and put individuals at risk of contracting the disease. The decreased demand for tobacco products combined with the closure of retail shops selling these products and supply chain disruptions have decreased sales since the virus spread. This reduced demand is anticipated to stay low in the short run, impacting tobacco packaging directly.
