Tobacco Packaging Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2630
Tobacco packaging market size is expected to see colossal expansion from 2021 to 2027 owing to the growing need to protect hygroscopic materials for quality retention and the rising advancements in the retail sector. The escalating stress and anxiety levels as well as the higher consumption of tobacco have triggered the surge in product innovations. Hiking consumer per capita incomes along with the expanding emphasis on environmental impacts are potentially adding to the industry share.
The elevating preference for flavored cigars, increasing weight issues as well as the influx of various cutting-edge packaging technologies will also give way for substantial market expansion. However, the increase in government restrictions pertaining to cigarettes and the rise in the number of anti-smoking campaigns along with the jump in various respiratory disorders may restrain the product market penetration to some extent.
Based on material, the paper box segment is estimated to capture a significant remuneration for the tobacco packaging industry. This is attributable to the rising volume of cigarette sales and the higher need for biodegradable and cost-effective solutions. The inclining environment concerns over the uses of plastics and metals will drive the industry share expansion.
In terms of type, the industry is segmented across primary, secondary, and tertiary. Out of these, the demand for secondary tobacco packaging is anticipated to flourish through 2027 on account of the growing preference for innovative cigarette boxes and the increasing requirements for re-closable laminated film bags. In addition, the provision of advantages, such as storage, transportation, and wholesale will act as significant contributors to the industry growth.
With regards to end-use, the tobacco packaging market size from the smoking segment will grow exponentially. This is mainly owing to the higher intake of cigarettes, cigars, and bidis amongst consumers and the rising need for moisture protection. According to the Centers for Disease Control and Prevention (CDC), around 14 in every 100 U.S. adults, who are aged 18 years and above smoked cigarettes in 2019.
Asia Pacific tobacco packaging industry is set to garner remarkable traction given the expanding population and the increasing stress levels in work life among the regional citizens. The booming cigarette and tobacco production across the region have made way for the rising preference for colorful and attractive packages. In addition, the growing consumption of tobacco in China is expected to favor regional growth.
Amcor, British American Tobacco, Reynolds Group (Alcoa), Phillip Morris International, Packaging Corporation of America, International Paper, ITC, WestRock, Mondi, Novelis, and Bemis (Amcor PLC) are some of the leading tobacco packaging industry participants.
Strategic marketing ventures, such as mergers, partnerships, and acquisitions along with various other growth initiatives are some key measures employed by these firms for business expansion and for increasing their revenue sales.
For instance, in October 2020, Wisconsin-based packaging company, Prairie Industries Holdings, struck an agreement with Sonaco to buy the latter’s Europe contract packaging business for $120 million in cash. This divestiture helped the firm in enhancing its offerings to its customers.
In another instance, in May 2021, Siegwerk marked its presence with two important initiatives, namely 4evergreen and CosPaTox in order to promote its circularity in packaging.
Effect of COVID-19 pandemic on the tobacco packaging market trends
The COVID-19 outbreak set tremendous turbulence on the global economic dynamics and substantially hampered the business operations of a gamut of industries across the world. Its crippling effects were also felt on the tobacco industry on account of the alarmingly rising infection rate which stirred rising levels of health consciousness among consumers. In addition, the spiked prices of tobacco products and the unavailability of packing and raw materials also posed a major challenge on the tobacco packaging market amidst the pandemic.
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