Introduction to Tobacco Packaging
Tobacco is essentially prepared from leaves of tobacco plant. Tobacco belongs to the family Solanaceae, of the genus Nicotiana. Packaging plays an important part, as it offers details about the content of the product, the ingredients and holds the product in proper shape. In several countries worldwide, tobacco packaging includes the brand name of the suppliers in a mandated font, scale, and place. Even, colors, pictures, company names or patents are not permitted to be used in these nations. In addition, tobacco packers also have to incorporate mandatory health alerts and harmful constituents on the packaging.
Market Size and Forecast
There are a wide range of tobacco products available in the market such as cigarettes, cigars, chewing or dipping e-cigarette & smokeless tobacco, dissolvable tobacco, pipe, hookah-cigarettes and others, which requires smart packaging concepts. Growth of population and the rise in per capita income in developed countries has led to a change in lifestyle, increased workload and stress which is more prevalent in urban areas. People are inclined towards the use of stimulants and anti-depressants such as tobacco products to manage stress levels. Currently, different production technologies are being used for tobacco packaging namely hot-foil stamping and rotogravure & offset printing.
The tobacco packaging market is anticipated to record a CAGR of around 3% over the forecast period i.e. 2020-2028. The market is segmented by type into primary, secondary and bulk, out of which, the primary segment is anticipated to hold the largest market share in tobacco packaging market on account of an increase in demand for safe and secure packaging. Primary packaging serves the main purpose of fully sealing the substance and removing the risk of food leakage by internal or external interferences. It also serves the goal of increasing the product's shelf life, making it suitable for prolonged consumption. A reliable primary packaging avoids damage to the substance during shipping. Other related characteristics, such as ease of handling and storage, are anticipated to increase the growth of the tobacco packaging market.
Growth Drivers
Increasing Consumption Of Tobacco Products
According to World Health Organization (WHO), there are about 1.337 billion smokers in 2018 with 244 million female and 1.093 billion males.
The increasing smoking habits among end users can be attributed to the chaotic life styles, increased workload and hectic work schedules. Nicotine mimics several neurotransmitters and increases signaling of the brain. It also activates dopamine signals, creating a pleasurable sensation on the brain. Moreover, the trends of hookah bar and pub culture has led to an increase in the consumption of tobacco, thereby raising the need amongst tobacco manufacturers to opt for innovative packaging solutions, which in turn is anticipated to drive the growth of the tobacco packaging market.
Increasing Need For Packaging Amongst Manufacturers
There has been an increasing importance on tobacco packaging by advertisers to distinguish between competing brands in order to gain greater consumer share, to help launch new tobacco products and further gain greater brand loyalty. Moreover, primary packaging helps in conserving the shelf life of the product, and secondary packaging facilitates the distribution channel for optimal transport effectiveness and cost efficiency. Such factors are anticipated to drive the growth of tobacco packaging market during the forecast period.
Restraints
Raising Awareness For Ill Effects Of Tobacco
Government and NGO's of various nations are organizing anti-tobacco drives to increase awareness about the ill effects of consuming tobacco, resulting in a reduction in its consumption. In addition, the World Health Organization (WHO) has already initiated several campaigns such as mAwareness & mSmoke-free to monitor cigarette consumption.
Market Segmentation
Our-in depth analysis of the tobacco packaging market includes the following segments:
By Type:
- Primary
- Secondary
- Bulk
By Packaging Material:
- Paper Box
- Film
- Jute
- Plastic
- Others
By End Use:
- Smoking Tobacco
- Smokeless Tobacco
- Raw Tobacco
By Region
On the basis of regional analysis, the tobacco packaging market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Asia Pacific emerged with the highest market share in 2019 and is anticipated to see the highest growth over the forecast period. On account of the growing intake of cigarettes and chewing tobacco, the region is expected to be the leading market for tobacco packaging in the world. Additionally, presence of numerous small, medium and large players operating in the market in this region is also anticipated to drive the market growth.
The tobacco packaging market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
- Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis.
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis
Top Featured Companies Dominating the Market
- Amcor plc
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- R.J. Reynolds Vapor Company
- ITC Limited
- Innovia Films
- WestRock Company
- Mondi plc
- Novelis
- British American Tobacco plc
- Sonoco Products Company
- Philips Morris Products S.A.
