As per the recent report by Fortune Business Insights™titled, “Tobacco Packaging Market Size, Share & IndustryAnalysis, By Material (Plastics, Paper, Paperboard, and Others), By PackagingType (Primary and Secondary), and Regional Forecast, 2020-2027,” thismarket is likely to rise at a CAGR of 3.0% and reach USD 20.45 billion by 2027from USD 16.15 billion earned in 2019. The forecast period set for this marketis between 2020 to 2027. The global tobacco packaging market size witnessedprogressive growth in the past few years with the advent and the increasingpopularity of smokeless tobacco firms worldwide. These products such as gutka,chewing tobacco, snus, snuff, and gum acts as substitutes for cigarettes andare smokeless.
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Drivers & Restraints-
Focus on Increasing Shelf life and Quality of Products to PromoteGrowth
The increasing consumption of tobacco products has propelled theneed for tobacco packaging, thereby boosting the market. Besides this, therising popularity of smokeless tobacco also augmented growth. Packaging isrequired for protecting the quality and authenticity of the product and toextend its shelf life. Specialty packaging products also protect the productfrom external temperatures or moistures. Therefore, the need for betterpackaging quality is expected to spur growth.
On the other side, tobacco consumption may lead to serious healthissues such as mouth cancer, lung cancer, and others. Therefore, governments ofvarious nations have imposed stringent laws imposed on tobacco production,packaging, and consumption. This, coupled with restrictions imposed on theadvertising of tobacco products on any medium may challenge the market in thecoming years.
Nevertheless, the increasing popularity of e-cigarettes and HeatedTobacco Units (HTU) is likely to create lucrative growth opportunities for themarket in the forthcoming years.
Segment-
Paperboard Segment to Dominate Market Owing to its LightweightNature
Based on materials, the market is dominated by the paperboardsegment as it is widely used for making cigars, cigarettes, and other products.Paperboards are thick and based out of paper with properties such asprintability, foldability, rigidity, and lightweight nature. It also helps toprotect the contents of the packed tobacco products from deteriorating and istherefore highly preferred. However, paper material, being the second-most usedproduct earned a 17.6% share in 2019.
Regional Analysis-
Asia Pacific Emerges Dominant Owing to Increasing Demand forCigarettes
In 2019, Asia Pacific earned a revenue of USD 9.30 billion andemerged dominant with Japan, China, and India emerging as the largestmanufacturing units. This growth is attributable to the increasing demand forcigarettes. Europe ranks second in the market with the UK, Germany, and Russiaemerging as leading nations. However, this region may face challenges in termsof stringent tobacco regulations in the forecast years. Furthermore, the risingdemand for chewing tobacco, cigars, cigarettes, and other products from nationssuch as Egypt, South Africa, and Turkey are likely to help the Middle East andAfrica witness substantial growth in the coming years.
Competitive Landscape-
Players Focusing on Manufacturing of Attractive Packaging forIncreasing Sales
The presence of many players has led to the fragmented nature ofthe market. They have invested both in terms of finance and resources for thedevelopment of new technologies to produce various tobacco and tobaccopackaging products. Players are mainly aiming at producing innovative packagingdesigns for advertising products as governments have restricted any kind ofadvertising for tobacco products. Attractive packaging will help players gain astrong foothold in the competition. Besides this, they are also adoptingcollaborative efforts such as mergers and acquisitions, product development,and geographical expansion for gaining a competitive edge in the market.
Browse Detailed Summary of Research Report with TOC:
https://www.fortunebusinessinsights.com/tobacco-packaging-market-102865
