In 2022, the worldwide tobacco packaging industry will be worth $14.1 billion. By 2032, the market is expected to be worth more than US$ 19.3 billion, thanks to a 3.2 percent CAGR in sales.
Increasing urbanization and the youth’s preference for smoking. Individuals’ tobacco consumption is also increasing as a result of stressful lives, greater workload, and rigorous schedules.
Tobacco sales are being boosted by product developments such as Roll-Your-Own-Cigarettes (RYOC), additive-free, and mini cigarette variations. The World Health Organization and several other government agencies have taken steps to reduce the harmful effects of tobacco use. One of these initiatives is plain packaging. The Australian government was the first to introduce the notion of plain packaging, which symbolizes the following factors:
- For tobacco packing, there is a certain color.
- Brand names should be displayed in a specific way.
- Provide essential information as well as health warnings.
- There will be no logos, brand graphics, or commercial material displayed.
This law is necessary to minimize the appeal of tobacco products, improve the effectiveness of health warnings, and avoid presenting false data.
The government of the United Kingdom, as well as several other countries, has approved this statute. Plain packaging is gaining a lot of traction around the world. Plain packaging is being implemented in at least 38 countries/territories, with 21 having adopted the legislation, three-putting it into reality, and 14 working on it.
According to research provided by the Federal Trade Commission on smokeless tobacco, sales of 1 oz. to less than 2 oz. packing sizes are surpassing other sectors, with overall sales exceeding $1181 billion in 2020. Consumers like wet snuff, which is typically sold in boxes. Although the boxes segment has a large market share, it is expected to grow 1.5 times its current value by 2032.
In addition, important firms are expected to see opportunities in the packaging of Heated Tobacco Units (HTU). The worldwide tobacco packaging business is gaining traction as consumer preferences shift away from smoking tobacco and toward smokeless tobacco. Companies such as British American Tobacco (BAT) and Tobacco International have announced plans to invest in HTU products, boosting the market’s growth.
According to an FMI analyst, “increasing demand for paper and paperboard packaging, as well as expanding popularity of smokeless tobacco, will generate opportunities for market expansion.”
Important Points to Remember:
- Total demand for paper and paperboard tobacco packaging will grow at a 4.1 percent CAGR over the projected period, based on material type.
- China is predicted to hold 42 percent of the East Asian market share over the evaluation period.
- Demand for boxes will expand at a 3.6 percent CAGR during the projection period in terms of packaging format.
- During the assessment period, the Indian tobacco packaging market is estimated to increase at a CAGR of 7%.