The global tobacco packaging market size witnessed progressive growth in the past few years with the advent and the increasing popularity of smokeless tobacco firms worldwide. These products such as gutka, chewing tobacco, snus, snuff, and gum acts as substitutes for cigarettes and are smokeless. As per a recent report by Fortune Business Insights titled, “Tobacco Packaging Market Size, Share & Industry Analysis, By Material (Plastics, Paper, Paperboard, and Others), By Packaging Type (Primary and Secondary), and Regional Forecast, 2020-2027,” this market is likely to rise at a CAGR of 3.0% and reach USD 20.45 billion by 2027 from USD 16.15 billion earned in 2019. The forecast period set for this market is between 2020 to 2027.

Major objectives of the Report are:

  • 360-degree overview of the market and growth parameters such as drivers, restraints, challenges, and upcoming opportunities
  • Detailed segmentation of the market with names and figures of leading segments
  • Major industry developments, current trends, and other interesting insights into the market
  • Impact of government regulations on the tobacco packaging market

Fortune Business Insights™ lists out the names of players operating in this market. They are as follows:

  • Innovia Films (UK)
  • Schweitzer-Mauduit International, Inc. (US)
  • ITC Limited (Kolkata)
  • Siegwerk Druckfarben AG & Co. KGaA (Germany)
  • Mondi Group (Austria)
  • International Paper (US)
  • Sonoco (US)
  • Smurfit Kappa (Ireland)
  • WestRock (US)
  • Amcor Limited (Australia)
  • Other players

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Drivers & Restraints-

Focus on Increasing Shelf life and Quality of Products to Promote Growth

The increasing consumption of tobacco products has propelled the need for tobacco packaging, thereby boosting the market. Besides this, the rising popularity of smokeless tobacco also augmented growth. Packaging is required for protecting the quality and authenticity of the product and to extend its shelf life. Specialty packaging products also protect the product from external temperatures or moistures. Therefore, the need for better packaging quality is expected to spur growth.

On the other side, tobacco consumption may lead to serious health issues such as mouth cancer, lung cancer, and others. Therefore, governments of various nations have imposed stringent laws imposed on tobacco production, packaging, and consumption. This, coupled with restrictions imposed on the advertising of tobacco products on any medium may challenge the market in the coming years.

Nevertheless, the increasing popularity of e-cigarettes and Heated Tobacco Units (HTU) is likely to create lucrative growth opportunities for the market in the forthcoming years.


Paperboard Segment to Dominate Market Owing to its Lightweight Nature

Based on materials, the market is dominated by the paperboard segment as it is widely used for making cigars, cigarettes, and other products. Paperboards are thick and based out of paper with properties such as printability, foldability, rigidity, and lightweight nature. It also helps to protect the contents of the packed tobacco products from deteriorating and is therefore highly preferred. However, paper material, being the second-most used product earned a 17.6% share in 2019.

Regional Analysis-

Asia Pacific Emerges Dominant Owing to Increasing Demand for Cigarettes

In 2019, Asia Pacific earned a revenue of USD 9.30 billion and emerged dominant with Japan, China, and India emerging as the largest manufacturing units. This growth is attributable to the increasing demand for cigarettes. Europe ranks second in the market with the UK, Germany, and Russia emerging as leading nations. However, this region may face challenges in terms of stringent tobacco regulations in the forecast years. Furthermore, the rising demand for chewing tobacco, cigars, cigarettes, and other products from nations such as Egypt, South Africa, and Turkey are likely to help the Middle East and Africa witness substantial growth in the coming years.

Competitive Landscape-

Players Focusing on Manufacturing of Attractive Packaging for Increasing Sales

The presence of many players have led to fragmented nature of the market. They have invested both in terms of finance and resources for the development of new technologies to produce various tobacco and tobacco packaging products. Players are mainly aiming at producing innovative packaging designs for advertising products as governments have restricted any kind of advertising for tobacco products. Attractive packaging will help players gain a strong foothold in the competition. Besides this, they are also adopting collaborative efforts such as mergers and acquisitions, product development, and geographical expansion for gaining a competitive edge in the market.

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Major Industry Developments of the Tobacco Packaging Market include:

June 2018 – A section of Nordic Packaging and Container Holdings called Powerflute was acquired by Mondi Group for USD 398 million to expand the packaging paper business unit of Mondi.

April 2019 – a manufacturing unit of folding carton products for food, tobacco, and consumer goods called Nampak Cartons Nigeria Limited was acquired by AR Packaging Group AB to expand its portfolio in the African market.

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