Tobacco Packaging Market Analysis

Global Tobacco Packaging Market Overview

Tobacco Packaging Market Size was valued at USD 14.2 Billion in 2022. The Tobacco Packaging industry is projected to grow from USD 14.7 Billion in 2023 to USD 19.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.26% during the forecast period (2023 - 2032). Increased consumption of smokeless tobacco forms and packaging as a medium for product promotion to rise demand are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Tobacco Packaging Market Trends

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  Growing consumption of smokeless tobacco is driving the market growth

  
  

The market CAGR for tobacco packaging is driven by the rising consumption of smokeless tobacco. The growing negative consequences of tobacco smoke on both direct and passive smokers, particularly children, have increased the demand for smokeless tobacco. Snuff, gutka, snuff, gum, and chewing tobacco are smokeless items used as cigarette alternatives. Special packaging items are designed to safeguard the quality of these products against moisture absorption and external temperature. Additionally, increased snus marketing activities will increase the demand for tobacco packaging.

The increasing usage of packaging as a medium for tobacco product promotion will improve the market. Packaging is a strong marketing tool in this business for advertising, creating brand awareness, and promoting items by providing general information about the product. Promoting tobacco products is due to legislative restrictions on tobacco products through other advertising mediums. Because of these restrictions, packaging is the only medium for product promotion. Hence, tobacco packaging is done in a way that can develop the company's brand value in the minds of consumers without interfering with government policies. Many businesses have continuously invested in developing attractive packaging solutions to maintain and attract new clients. For instance: Philip Morris International (PMI) has hosted packaging in diverse bright colors for its HTU products to increase brand awareness.

Moreover, the rising retail sector, growth in online sales, technical improvements, and other factors, such as an increase in the number of new smokers, are projected to increase the market’s demand for tobacco packaging products. The increased popularity of flavored cigars, the rise in obesity rates, the advent of several cutting-edge packaging technologies, and other reasons will all contribute to significant market growth.  For Instance:  As per the Action on Smoking and Health (SH), 1.1 billion tobacco users are worldwide. Over the following two decades, this figure is expected to rise to 1.6 billion. As a result, it is anticipated that demand for tobacco packaging will increase throughout the projection period due to the rising consumption of tobacco products. Thus, driving the Tobacco Packaging Market revenue.

Tobacco Packaging Market Segment Insights

Tobacco Packaging Material Insights

The Tobacco Packaging Market segmentation, based on material, includes paper boxes, film, jute, plastic, and others. The paper box segment dominated the market, accounting for maximum market revenue due to its low weight. It has been discovered that most tobacco products are packaged in a paper box. In the tobacco packaging sector, paper boxes are commonly utilized. It is both cost-effective and environmentally friendly, gaining favor in various settings. Paper box packaging includes a protective foil or plastic that keeps cigarettes or tobacco from being destroyed, possibly leading to market growth in the projected period. The growing problems caused by non-biodegradable or non-recyclable packaging, such as plastic packaging, may propel the business forward.

Tobacco Packaging Type Insights

The tobacco packaging market segmentation, based on type, includes primary, secondary, and bulk. The secondary segment generated the most income due to increased demand for innovative cigarette boxes and rising cigarette usage at social events. Secondary packaging protects both tobacco items and the original packaging. These packagings benefit storage, transportation, and wholesale, contributing to the segment’s growth.

Tobacco Packaging End-User Insights

The Tobacco Packaging Market segmentation, based on end-user, includes smoking tobacco, smokeless tobacco, and raw tobacco. The smokeless tobacco category generated the most income. Chewing snuff is used as a product of smokeless tobacco. Sheets, films, containers, paper, foils, covers, and boxes are the material which is used in basic tobacco packaging. Bundles, wraps, hinged cover containers, slides, and shells are all used in business or commercially produced tobacco packaging. The tobacco packaging market currently belongs to the cigarette manufacturing trade.

Figure 1:Tobacco Packaging Market by End-User, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Tobacco Packaging Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Tobacco Packaging Market area will dominate this market, due to the occurrence of established tobacco companies. In addition, the growing technological advancement and rising disposable income will boost market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: TOBACCO PACKAGING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Tobacco Packaging Market accounts for the second-largest market share due to the rising cigarette demand. Further, the German Tobacco Packaging Market held the largest market share, and the UK Tobacco Packaging Market was the fastest-growing market in the European region.

The Asia-Pacific Tobacco Packaging Market is expected to grow at the fastest CAGR from 2023 to 2032, with the rising consumption of chewing tobacco and cigarettes. Moreover, China’s Tobacco Packaging Market held the largest market share, and the Indian Tobacco Packaging Market was the fastest-growing market in the Asia-Pacific region.

Tobacco Packaging Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Tobacco Packaging Market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Tobacco Packaging industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the  Tobacco packaging industry to benefit clients and increase the market sector. In recent years, the Tobacco Packaging industry has offered some of the most significant advantages to the tobacco industry. Major players in the Tobacco Packaging Market, including Amcor Ltd. (Australia), Innovia Films (UK), WestRock (US), Mondi Group (South Africa), ITC (India), Novelis (US), British American Tobacco (UK), Sonoco (US), Philip Morris International Inc. (US), Reynolds American Corporation (US), and others, are attempting to increase market demand by investing in research and development operations.

DS Smith's origin can be traced back to the Smith Family’s box-making business in East London in the 1940s. Over the next half-century, the company built a reputation for exceptional engineering and customer service. As DS Smith increased in size, the company expanded its skills, adding papermaking and recycling to understand better it’s customer’s problems as a whole rather than just one aspect. DS Smith has recently undergone remarkable growth and acquisition in Europe and North America. As a result of this expansion, the company became one of the largest corporations listed on the London Stock Exchange. DS Smith’s mission is to be the leading supplier of sustainable packaging solutions. DS Smith operates in over 30 countries and employs over 30,000 individuals. The company gives strategic support to its customers throughout their whole packaging Supply Cycle due to the abilities and knowledge of its staff. For Instance: In April 2022, DS Smith introduced a corrugated cardboard box for e-commerce device shipment. Instead of adhesive packaging with a single-use plastic insert, the corrugated cardboard box uses a single-material solution.

WestRock is a pioneer in fiber-based packaging technologies. WestRock has the obligation and power to make considerable progress towards a more circular, sustainable economy, with about 58,000 WestRock team members and billions of parcels in circulation. WestRock is materials scientists, package designers, mechanical engineers, and manufacturing specialists who use cutting-edge science and technology to propel packaging innovation. WestRock has over 300 manufacturing facilities worldwide. The company works as one WestRock, leveraging its size and scale. It collaborates with its customers to innovate toward their business and environmental goals. For Instance: WestRock company announced plans to establish an innovative corrugated box plant in Longview, Washington, to satisfy the growing demand from its Pacific Northwest regional customers. The new corrugated box facility will serve all industry groups and markets in the Pacific Northwest.

Key Companies in the Tobacco Packaging Market include

• Amcor Ltd. (Australia)


• Innovia Films (UK)


• WestRock (US)


• Mondi Group (South Africa)


• ITC (India)


• Novelis (US)


• British American Tobacco (UK)


• Sonoco (US)


• Philip Morris International Inc. (US)


• Reynolds American Corporation (US)

Tobacco Packaging Industry Developments

March 2022: WestRock broke ground on a 285,000-square-foot expansion at its Claremont consumer packaging facility. A performance-based One North Caroline Fund grant boosted the USD 47 million investment.

May 2022: Smurfit Kappa UK Limited, an integrated maker of paper-based packaging materials, announced the acquisition of Atlas Packaging. Based in Barnstaple, North Devon, Atlas Packaging is an independent corrugated packaging provider with a substantial market presence in the United Kingdom.

May 2021: Siegwerk celebrated its presence with two significant initiatives, 4evergreen and CosPa Tox, to promote its circulatory in packaging.

Tobacco Packaging Market Segmentation

Tobacco Packaging Material Outlook

• Paper Box


• Film


• Jute


• Plastic


• Others

Tobacco Packaging Type Outlook

• Primary


• Secondary


• Bulk

Tobacco Packaging End-User Outlook

• Smoking Tobacco


• Smokeless Tobacco


• Raw Tobacco

Tobacco Packaging Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America