Published: May 2020 | Report Code: CM12025 | Available Format: PDF | Pages: 153
Tobacco packaging market is expected to register a CAGR of 3.7% during 2020–2030. Surging popularity of e-cigarettes creating growth opportunities.
The paper category, within the material type segment, will continue to dominate the market till 2030. This will be because of the preference for paper for packing cigarettes, which are the most-widely consumed tobacco products across the world. According to the World Health Organization (WHO), approximately 1 billion people used the nearly 6 trillion cigarettes manufactured in 2019. Moreover, the environment-friendly nature of paper and paperboard materials has resulted in their increasing usage in packaging tobacco and its end-products.
The primary category, under the packaging type segment, will witness the faster growth in the coming years. This is because primary packaging is easy to remove and has an attractive appearance and high utility.
Currently, the Asia-Pacific (APAC) tobacco packaging market generates the highest revenue due to the large-scale production and consumption of tobacco products in China. The China National Tobacco Corporation manufactures around one-third of all the cigarettes in the world. The WHO states that in 2019, China was home to 300 million, or one-third of the smokers, in the world.
To meet the domestic demand, the tobacco packaging industry of China has increased its focus on technological developments. Besides, the booming disposable income of the middle class and improving infrastructure have amplified the demand for tobacco products in India, South Korea, Japan, and Thailand. Owing to this, the requirement for wooden boxes, paper and paperboards, and cans as packaging materials has surged significantly.
The consumption of tobacco-based products is growing due to the rising work pressure. Nicotine, the key component of tobacco, is a psychoactive mood-altering chemical, which stimulates the release of dopamine in the body, after reaching the brain. Dopamine release helps in relieving stress by creating a sensation of relaxation and pleasure. According to the WHO, 1.337 billion people, including 43 million aged 13–15, used tobacco in 2018 to deal with peer pressure, personal views, social and physical environment, and deteriorating mental health. Thus, the tobacco packaging market will witness substantial growth due to the burgeoning demand for tobacco products for reducing stress.
The market for tobacco packaging materials has a high growth potential due to the mounting demand for e-cigarettes. Vaping products are becoming popular among the youth, especially those within the age bracket of 15–20, because of their easy usage, cost-efficiency, odor-free nature, low chemical content, fewer health implications, and zero ash production. Moreover, the usage of e-cigarettes has no risk of fire and causes minimal teeth staining. Additionally, the flavor and cartridge strength of these products can be customized according to the requirement and taste of users.
Apart from this, vaping products have become a major fashion trend in today’s times. The metallic-foil accents and vivid graphics on their packaging help in highlighting the more than 8,000 unique flavors that are available in the market. These aesthetic packaging options are offering lucrative opportunities to material providers and packaging firms.
|Market Size by Segments||Material Type, Packaging Type|
|Market Size of Geographies||U.S., Canada, Germany, France, U.K., Russia, China, India, Japan, Brazil, Mexico, Saudi Arabia, South Africa|
|Market Players||Amcor Plc, International Paper Company, ITC Limited, Mondi Plc, Packaging Corporation of America, Smurfit Kappa Group Plc, Sonoco Products Company, WestRock Company, Winkel Verpackungen GmbH, Bihlmaier GmbH, TFP Sp. z o. o., Duke Packaging, Emenac Packaging, Leser GmbH, Stora Enso Oyj|
In a bid to add more products to their portfolio and integrate new technologies into their operations, companies in the tobacco packaging market are rapidly merging with or acquiring each other.
For instance, Sonoco Products Company completed the acquisition of Corenso Holdings America (CHA), an uncoated recycled paperboard (URB) and high-performance core manufacturer for the packaging film, paper, specialty, and tape industries, in August 2019. This $110 million all-cash transaction has added CHA’s URB mill, which produces a wide range of core board grades, to the production assets of Sonoco Products Company.
Similarly, in September 2016, Sonoco Blow Moulding, which manufactures rigid plastic packaging for the powdered beverage, processed food, confectionery, tobacco, pet food, personal care, home and garden product, and pharmaceutical sectors, was acquired by Amcor Plc. With this move, Amcor raised its production capacity of specialty containers and expanded its clientele and product portfolio.
The major players in the global tobacco packaging market are Amcor Plc, International Paper Company, ITC Limited, Mondi Plc, Packaging Corporation of America, Smurfit Kappa Group Plc, Sonoco Products Company, WestRock Company, Winkel Verpackungen GmbH, Bihlmaier GmbH, TFP Sp. z o. o, Duke Packaging, Emenac Packaging, Leser GmbH, and Stora Enso Oyj.
The tobacco packaging market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Material Type
Based on Packaging Type
Get a bespoke market intelligence solution
Our dedication to providing the most-accurate market information has earned us verification by Dun & Bradstreet (D&B). We strive for quality checking of the highest level to enable data-driven decision making for you
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
With 24/7 research support, we ensure that the wheels of your business never stop turning. Don’t let time stand in your way. Get all your queries answered with a simple phone call or email, as and when required
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws