The tobacco packaging market value is projected to be USD 17,423.50 million in 2030 with a CAGR of 3.80% from 2018 to 2030
The tobacco packaging market growth rate is projected to be 3.80 until 2030. The tobacco packaging market value was USD 14.28 billion in 2017. It’s projected to be USD 17,423.50 million in 2030.
There are many products in the tobacco packaging market. These include cigarettes, cigars, e-cigarettes, smokeless tobacco, dissolvable tobacco, pipes, etc.
COVID-19 is a new virus that the world has never seen before. Its unique properties made it feared by many around the world. COVID-19 was responsible for many hospitalizations and more than a few deaths worldwide.
Governments realized that the virus was dangerous and could be deadly early on. They imposed lockdowns and quarantines for this reason. These were temporary because they were ineffective in stopping the spread of the virus. However, the impact on most businesses around the world was definitely devastating. Most businesses worldwide were forced to either temporarily halt operations or dramatically scale them back. A lot of businesses were forced to close because they couldn’t remain profitable.
The companies in the tobacco packaging market were no exception. Sales worldwide plunged dramatically during the height of the pandemic. There was a reason for this. Tobacco products damage the lungs and this makes people more likely to get COVID-19. Many shops selling tobacco products were forced to close permanently because of this.
The global tobacco packaging market is unique because unlike as is the case with most other markets around the world, it’s not competitive at all. There are a few reasons for this. The first is that there are substantial cultural and legal barriers to overcome. The market may be lucrative and have a high growth rate but there are many elements in global societies that want to see an end to the sale and usage of all tobacco products. They are pressuring their national governments to pass legislation that makes manufacturing and marketing tobacco products harder. It’s working because the overall number of users of tobacco products around the world has declined somewhat in recent years.
In any case, companies are finding that investment in research and development to come up with safer and healthier products is not enough. They also have to overcome negative publicity that many think tanks and national governments have created with regard to smoking. Since attractive packaging has been outlawed in most nations around the world, these companies have to get creative.
The companies have been forced to get innovative and creative in terms of marketing their products to the public. They have also turned to reduce the overall cost of these products at the unit level.
Companies are also finding that they have to increase their knowledge bases and resource pools by merging with and acquiring other successful companies in the industry. It has worked because these companies were able to approach research and development and marketing campaigns in a new and innovative light. They were also able to use newer and innovative approaches to this.
The main driver of tobacco market growth is the fact that populations are growing rapidly in developing nations. These people are getting richer as economic growth begins to take off in most developing nations around the world. They see smoking as being glamorous and cool. These people want to imitate their favorite celebrities who often smoke.
Lifestyles around the world are changing dramatically as well. It’s no longer considered taboo for women to smoke, especially in developing nations. Recent technological advancements have encouraged more people around the world to smoke, even in developed nations. They perceive that the new generation of tobacco products is safer for their health.
People are also leading busier and more stressful lives. They are turning to various tobacco products for relief.
Companies in the global tobacco packaging market are seeing that they can remain competitive only if they sell what the public perceives to be a safer and healthier product. That’s why they’re investing heavily in research and development. The objective is to develop and market safe tobacco products.
Tobacco products cause many terminal diseases including oral cancer and cardiovascular disease. This is holding back growth in the tobacco packaging market.
Companies in the tobacco packaging market are going to have to develop safer tobacco products. They will also have to market these as being safer. These companies will have to get creative in their marketing efforts because traditional advertising ways, including attractive packaging, are being banned.
Reynolds American Corporation is a major American player in the global tobacco packaging market. It became an industry leader by investing heavily in research and development. Thus, it was able to develop the sustainable competitive advantage that it needed to remain profitable.
The global tobacco packaging market can be grouped into the following sub-segments based on material:
The materials sub-segment can be grouped further into films, boards, foil, cartons, paper, laminates, and membranes. Most companies in the tobacco packaging market use paper boxes for packaging. The reasons why are that it’s economical and easy on the environment.
The global tobacco packaging market can be grouped into the following sub-segments based on type:
The secondary sub-segment currently enjoys the largest market share. It also has the highest tobacco packaging market growth rate. This is expected to continue for some years.
The primary packaging sub-segment includes metalized films, polyester, and nylon.
The global tobacco packaging market can be grouped into the following sub-segments based on end-user:
The smoking tobacco sub-segment includes dipping and chewing tobacco, tobacco gum, and others.
The younger people, especially in developing nations, are embracing using tobacco products. They’re enticed by the packaging that is still somewhat attractive. They are also enticed to smoke by the fact that many of the celebrities that they admire smoke.
The leading manufacturers of tobacco products include the United States of America, Turkey, China, Brazil, India, and South Korea. China lead the pack in terms of tobacco production five years ago. Tobacco usage is increasing in nations like India and China. There’s a reason for this. The populations in both nations are growing exponentially. Also, there is a huge youth sub-segment in these populations that are growing rapidly. This segment is growing richer every year. They also aspire to copycat Western trends which they perceive to be cool and glamorous. Thus, they are embracing using tobacco products zealously.
The North American region and the European Union are seeing a surge in the usage of tobacco products. What’s driving this growth is the introduction and aggressive marketing of e-cigarettes. Many people, especially the young, are using them in larger numbers because they perceive them to be a safer and healthier alternative to traditional tobacco products.
The Japanese and Chinese are avid smokers. In fact, this region accounts for the majority of sales of various types of cigarettes.
China is seeing a surge in tobacco consumption because of its packaging. Many manufacturers of tobacco products in this nation appeal to the emotions of the masses, especially the youth. They display pictures of rivers, famous and valuable national treasures, and famous historic buildings, landmarks, and flowers. People associate smoking with enjoying the best of China, including its nature and countryside. Thus, they are tempted to buy tobacco products more often.
China’s packaging also makes vivid and strong references to its long national history. This evokes pride in most Chinese people and it encourages them to take up smoking.
The tobacco packaging market growth rate is projected to be 3.1% until 2023. The tobacco packaging market value was USD 14.28 billion in 2017. It’s projected to be USD 16.65 billion in 2023.
The Asia Pacific region is seeing the greatest regional CAGR in the global tobacco packaging market. It also enjoys the greatest regional market share. Tobacco product consumption has increased in the West. it’s mainly because of the launch and heavy marketing of the e-cigarette which is perceived to be a healthier alternative to conventional tobacco products.
|Market Size||USD 17,423.50 million|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Material, Type, and End-Use|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Amcor Ltd. (Australia), Innovia Films (U.K), WestRock (U.S.), Mondi Group (South Africa), ITC (India), Novelis (U.S.), British American Tobacco (U.K), Sonoco(U.S.), Philip Morris International Inc. (U.S.), and Reynolds American Corporation (U.S.)|
|Key Market Opportunities||New product launches and R&D amongst major key players|
|Key Market Drivers||
The global tobacco packaging market is expected to reach USD 17,423.50 million by 2030.
Global tobacco packaging market is expected to exhibit a strong 3.80% CAGR over the forecast period from 2021 to 2030.
The growing demand for cigarettes is the key driver for the tobacco packaging market.
China, India, Brazil, Turkey, South Korea, and the U.S. are the major regional markets for tobacco packaging.
Leading players in the global tobacco packaging market include Amcor Ltd., British American Tobacco, and Innovia Films, among others.