Tobacco Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 3.32 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Tobacco Packaging Market Analysis
The tobacco packaging market is expected to register a CAGR of 3.32% during the forecast period. Continuous product innovation in terms of ingredients, nicotine level, flavor, and size, coupled with consumer preference for tobacco as a recreative habit to reduce stress and anxiety, is propelling the adoption of tobacco and resulting in the market's growth.
- Owing to the growing consumption of cigarettes and tobacco, the market for tobacco packaging is witnessing considerable growth. Nearly 6.5 trillion cigarettes are sold worldwide yearly, which translates to roughly 18 billion cigarettes daily. Furthermore, there are 1.1 billion tobacco consumers globally, according to the Action on Smoking and Health (ASH). This number is anticipated to grow to 1.6 billion over the next two decades.
- Furthermore, the packaging market for tobacco has been witnessing mandatory regulations regarding avoiding attractive packaging and adopting plain packaging. The need for tobacco packaging has significantly shifted toward plain packaging over the past eight years. According to WHO, plain packaging is a considerable demand reduction measure that reduces the attractiveness of tobacco products, restricts tobacco packaging as a form of tobacco advertising and promotion, limits misleading packaging and labeling, and increases the effectiveness of health warnings.
- Significant market growth will also result from the rising popularity of flavored cigars, the rise in obesity rates, the introduction of numerous cutting-edge packaging methods, and other factors. However, the increase in government regulations on smoking, the number of anti-smoking efforts, and the rise in various respiratory ailments may, to some extent, limit the product's market penetration.
- The spread of COVID-19 has impacted the tobacco packaging market negatively, as the disease attacks the lungs, and people are prohibiting the use of products and behaviors that weakens the lungs and put individuals at risk of contracting the disease. The decreased demand for tobacco products combined with the closure of retail shops selling these products and supply chain disruptions have decreased sales since the virus spread. This reduced demand is anticipated to stay low in the short run, impacting tobacco packaging directly.
Tobacco Packaging Market Trends
This section covers the major market trends shaping the Tobacco Packaging Market according to our research experts:
Secondary Packaging to Witness Significant Demand
- Like other sensitive goods, tobacco products such as cigarettes require packaging, which provides barrier properties to deliver the product in optimum condition. Secondary packaging, such as flexible packaging, has eventually become the traditional packaging for tobacco and typically includes functionality such as re-closable or re-sealable laminated film pouches and bags. These packs have a new flow-wrapped outer film, all contributing to the barrier requirements.
- Vendors in the market are rapidly expanding their manufacturing plants, intending to increase their production capacity and gain a larger share of the industry revenue pie. For instance, in May 2021, Siegwerk marked its presence with two important initiatives, 4evergreen and CosPaTox, to promote its circularity in packaging.
- However, government regulations and anti-smoking campaigns are prevalent globally, and prohibitive taxation & regulations have increased over the last few years, which has led to a decline in cigarette consumption. As a result, tobacco packaging is expected to post a slow CAGR during the forecast period. For instance, Singapore has adopted plain packaging of tobacco products; the Ministry of Health Singapore stated that the measure would contribute to achieving broader tobacco control goals in the country by discouraging non-smokers and children from taking up smoking, encouraging current smokers to quit, and promoting a tobacco-free lifestyle, which will ultimately lead to reduced smoking prevalence.
- This new measure will restrict the use of logos, colors, images, or other promotional information associated with the tobacco brand on all types of tobacco products sold in Singapore. Product and brand names will be allowed in a standardized font style and color.
- Regardless of the macro factors, such as the booming retail sector, increase in online sales, technological advancements, and other factors, like an increase in several new smokers, etc., are expected to contribute to the demand for tobacco packaging products in the market.
Asia Pacific to Hold a Major Share
- The government's measures to decrease cigarette consumption by raising prices and enacting extra cigarette taxes are expected to fuel market growth in the Asia-Pacific region. For instance, traditional cigarette sales in Japan and India will be impacted by the planned tax increases, which will present a significant potential for developing tobacco products.
- Furthermore, the country produces colorful and attractive tobacco packages, unlike other countries producing plain boxes. There is a high prevalence of cigarette packets bearing images of famous rivers, maintains, rare and precious national treasures, well-known buildings, historical sites, and rare flowers. For instance, the major Chinese cigarette brands, including Panda, Peony, Chunghwa, Mount Huangshan, and The Pavilion of Prince Teng, have such designs or images on their packaging.
- Characteristics such as the tobacco industry in China encourage a brand and visual culture that is fundamentally different from those of other countries. The signs and graphics on cigarette packaging not only carry a strong and deep sense of the history of traditional culture but also integrate a sense of national pride, encouraging tobacco use and thereby augmenting the market for tobacco packaging in the country.
- The increase in regulations regarding the adoption of plain packaging and graphic regarding warnings of tobacco usage in the region has been significantly restraining the market studied. For instance, in July 2022, The Ministry of Health and Family Welfare, Government of India notified new sets of specified health warnings for all tobacco product packs by amending the Cigarettes and Other Tobacco Products (Packaging and Labeling) Rules, 2008 vide GSR 248(E), dated July 21, 2022.
Tobacco Packaging Industry Overview
The major companies include WestRock CompanyWest, Amcor Limited, The International Paper Company, Smurfit Kappa Group PLC, Phillip Morris International Inc., and Sonoco Products Company, among others. The market is moderate in concentration as the vendors in the market vary for market share across regions among players. Therefore market concentration will be moderate.
- March 2022 - The WestRock company broke ground on a 285,000-square-foot expansion at its consumer packaging facility in Claremont. The USD 47 million investment was bolstered by a performance-based grant from the One North Carolina Fund.
- February 2022 - WestRock Company announced its plans to build a new corrugated box plant in Longview, Washington, to meet the growing demand from its regional customers in the Pacific Northwest. The new corrugated box plant will serve all industry segments and markets in the Pacific Northwest.
Tobacco Packaging Market Leaders
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WestRock Company
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Amcor Limited
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The International Paper Company
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Smurfit Kappa Group PLC
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Mondi Group
*Disclaimer: Major Players sorted in no particular order
Tobacco Packaging Market News
- May 2022 - Smurfit Kappa UK Limited, an integrated manufacturer of paper-based packaging products, has announced the acquisition of Atlas Packaging. Based in Barnstaple, North Devon, Atlas Packaging is an independent corrugated packaging provider with a strong market presence in the United Kingdom.
- April 2022 - DS Smith introduced a corrugated cardboard box for the e-commerce shipment of devices. The corrugated cardboard box features a single-material solution instead of glued packaging with a single-use plastic insert.
Tobacco Packaging Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
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4.3 Market Drivers
- 4.3.1 Consumer Preference for tobacco as a Recreative Habit
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4.4 Market Restraints
- 4.4.1 Government Regulations Causing the Market to Stagnate
- 4.5 Impact of COVID-19 on the Market Landscape
5. MARKET SEGMENTATION
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5.1 By Material
- 5.1.1 Paper and Paperboard
- 5.1.2 Plastic
- 5.1.3 Other Materials
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5.2 By Packaging Type
- 5.2.1 Primary
- 5.2.2 Secondary
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5.3 By Geograpgy
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia Pacific
- 5.3.4 Latin America
- 5.3.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 WestRock Company
- 6.1.2 Amcor Limited
- 6.1.3 The International Paper Company
- 6.1.4 Smurfit Kappa Group PLC
- 6.1.5 Mondi Group
- 6.1.6 Innova Films Limited
- 6.1.7 Phillip Morris International Inc.
- 6.1.8 Sonoco Products Company
- 6.1.9 Siegwerk Druckfarben AG & Co. KGaA
- 6.1.10 Japan Tobacco International
- 6.1.11 Treofan Film international
- 6.1.12 Stora Enso Oyj
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OUTLOOK
** Subject To AvailablityTobacco Packaging Industry Segmentation
The tobacco packaging market scope covers both primary and secondary packaging types made of material either paper or plastic. Tobacco packaging is unique packaging where manufacturers can only print the brand name in a mandated font, size, and place. They are not allowed to use colors, images, companies logos, or trademarks. Furthermore, the packaging must add mandated health warnings and toxic constituents. The appearance of all tobacco packs is standardized, including the pack's color. The report provides a detailed analysis of the materials used in primary and secondary tobacco packaging across the globe.
The Tobacco Packaging Market is Segmented By Material (Paper and Paperboard, Plastic), Packaging Type ( Primary, Secondary), and Geography.
| By Material | Paper and Paperboard |
| Plastic | |
| Other Materials | |
| By Packaging Type | Primary |
| Secondary | |
| By Geograpgy | North America |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle East and Africa |
Tobacco Packaging Market Research FAQs
What is the current Tobacco Packaging Market size?
The Tobacco Packaging Market is projected to register a CAGR of 3.32% during the forecast period (2024-2029)
Who are the key players in Tobacco Packaging Market?
WestRock Company, Amcor Limited, The International Paper Company, Smurfit Kappa Group PLC and Mondi Group are the major companies operating in the Tobacco Packaging Market.
Which is the fastest growing region in Tobacco Packaging Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Tobacco Packaging Market?
In 2024, the North America accounts for the largest market share in Tobacco Packaging Market.
What years does this Tobacco Packaging Market cover?
The report covers the Tobacco Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Tobacco Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Tobacco Packaging Industry Report
Statistics for the 2023 Tobacco Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Tobacco Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
