Tobacco Packaging Market
The global tobacco
packaging market size witnessed progressive growth
in the past few years with the advent and the increasing popularity of
smokeless tobacco firms worldwide. These products such as gutka, chewing
tobacco, snus, snuff, and gum acts as substitutes for cigarettes and are
smokeless. As per a recent report by Fortune Business Insights titled, “Tobacco
Packaging Market Size, Share & Industry Analysis, By Material (Plastics,
Paper, Paperboard, and Others), By Packaging Type (Primary and Secondary), and
Regional Forecast, 2020-2027,” this market is likely to rise at a CAGR
of 3.0% and reach USD 20.45 billion by 2027 from USD
16.15 billion earned in 2019. The forecast period set for this market
is between 2020 to 2027.
Drivers & Restraints-
Focus on Increasing Shelf life and
Quality of Products to Promote Growth
The increasing consumption of tobacco
products has propelled the need for tobacco packaging, thereby boosting the
market. Besides this, the rising popularity of smokeless tobacco also augmented
growth. Packaging is required for protecting the quality and authenticity of
the product and to extend its shelf life. Specialty packaging products also
protect the product from external temperatures or moistures. Therefore, the
need for better packaging quality is expected to spur growth.
On the other side, tobacco consumption
may lead to serious health issues such as mouth cancer, lung cancer, and
others. Therefore, governments of various nations have imposed stringent laws
imposed on tobacco production, packaging, and consumption. This, coupled with
restrictions imposed on the advertising of tobacco products on any medium may
challenge the market in the coming years.
Nevertheless, the increasing popularity
of e-cigarettes and Heated Tobacco Units (HTU) is likely to create lucrative
growth opportunities for the market in the forthcoming years.
Segment-
Paperboard Segment to Dominate Market
Owing to its Lightweight Nature
Based on materials, the market is
dominated by the paperboard segment as it is widely used for making cigars,
cigarettes, and other products. Paperboards are thick and based out of paper
with properties such as printability, foldability, rigidity, and lightweight
nature. It also helps to protect the contents of the packed tobacco products
from deteriorating and is therefore highly preferred. However, paper material,
being the second-most used product earned a 17.6% share in 2019.
Regional Analysis-
Asia Pacific Emerges Dominant Owing to
Increasing Demand for Cigarettes
In 2019, Asia Pacific earned a revenue
of USD 9.30 billion and emerged dominant with Japan, China, and India emerging as
the largest manufacturing units. This growth is attributable to the increasing
demand for cigarettes. Europe ranks second in the market with the UK, Germany,
and Russia emerging as leading nations. However, this region may face
challenges in terms of stringent tobacco regulations in the forecast years.
Furthermore, the rising demand for chewing tobacco, cigars, cigarettes, and
other products from nations such as Egypt, South Africa, and Turkey are likely
to help the Middle East and Africa witness substantial growth in the coming
years.
Competitive Landscape-
Players Focusing on Manufacturing of
Attractive Packaging for Increasing Sales
The presence of many players have led
to fragmented nature of the market. They have invested both in terms of finance
and resources for the development of new technologies to produce various
tobacco and tobacco packaging products. Players are mainly aiming at producing
innovative packaging designs for advertising products as governments have
restricted any kind of advertising for tobacco products. Attractive packaging
will help players gain a strong foothold in the competition. Besides this, they
are also adopting collaborative efforts such as mergers and acquisitions,
product development, and geographical expansion for gaining a competitive edge
in the market.
Gain More Insights into the Tobacco
Packaging Market Research Report
https://www.fortunebusinessinsights.com/tobacco-packaging-market-102865
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