In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
On September 8, 2020, Amcor confirmed its membership of the "HolyGrail 2.0" Digital Watermarks Program, which brings together over 85 businesses and associations, including core consumers and major business player, around the packaging value chain. It partners in pioneering packaging technology to improve recycling. HolyGrail 2.0 is a pilot project facilitated by the European Brands Association (EBA) Target, which seeks to show the effectiveness of automated watermarking technology for detailed sorting and better-quality recycling.
On July 8,2019, R.J. Reynolds Vapor Company announced that it is expanding its innovative Modern Oral Portfolio with VELO, a line of tobacco leaf-free and spit-free nicotine. VELO represents an appreciation of today's adult tobacco consumers growing tastes and their desires for a variety of choices to suit their new lifestyles. VELO is a nicotine derivative obtained from cigarettes that comes in the form of nicotine pouches.
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.
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.
According to World Health Organization (WHO), there are about 1.337 billion smokers in 2018 with 244 million female and 1.093 billion males.CLICK TO DOWNLOAD SAMPLE REPORT
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.
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.
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.
Our-in depth analysis of the tobacco packaging market includes the following segments:
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: