Theglobal tobaccopackaging market size witnessed progressive growth in the past fewyears with the advent and the increasing popularity of smokeless tobacco firmsworldwide. These products such as gutka, chewing tobacco, snus, snuff, and gumacts as substitutes for cigarettes and are smokeless. As per a recent report byFortune Business Insights titled, “Tobacco Packaging Market Size, Share &Industry Analysis, By Material (Plastics, Paper, Paperboard, and Others), ByPackaging Type (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.
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Focuson Increasing Shelf life and Quality of Products to Promote Growth
Theincreasing consumption of tobacco products has propelled the need for tobaccopackaging, thereby boosting the market. Besides this, the rising popularity ofsmokeless tobacco also augmented growth. Packaging is required for protectingthe quality and authenticity of the product and to extend its shelf life.Specialty packaging products also protect the product from externaltemperatures or moistures. Therefore, the need for better packaging quality isexpected to spur growth.
Onthe other side, tobacco consumption may lead to serious health issues such asmouth cancer, lung cancer, and others. Therefore, governments of variousnations have imposed stringent laws imposed on tobacco production, packaging,and consumption. This, coupled with restrictions imposed on the advertising oftobacco products on any medium may challenge the market in the coming years.
Nevertheless,the increasing popularity of e-cigarettes and Heated Tobacco Units (HTU) islikely to create lucrative growth opportunities for the market in theforthcoming years.
Segment-
PaperboardSegment to Dominate Market Owing to its Lightweight Nature
Basedon materials, the market is dominated by the paperboard segment as it is widelyused for making cigars, cigarettes, and other products. Paperboards are thickand based out of paper with properties such as printability, foldability,rigidity, and lightweight nature. It also helps to protect the contents of thepacked 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.
RegionalAnalysis-
AsiaPacific Emerges Dominant Owing to Increasing Demand for Cigarettes
In2019, Asia Pacific earned a revenue of USD 9.30 billion and emerged dominantwith Japan, China, and India emerging as the largest manufacturing units. Thisgrowth is attributable to the increasing demand for cigarettes. Europe rankssecond in the market with the UK, Germany, and Russia emerging as leadingnations. However, this region may face challenges in terms of stringent tobaccoregulations in the forecast years. Furthermore, the rising demand for chewingtobacco, cigars, cigarettes, and other products from nations such as Egypt,South Africa, and Turkey are likely to help the Middle East and Africa witnesssubstantial growth in the coming years.
Competitive Landscape-
PlayersFocusing on Manufacturing of Attractive Packaging for Increasing Sales
Thepresence of many players have led to fragmented nature of the market. They haveinvested both in terms of finance and resources for the development of newtechnologies to produce various tobacco and tobacco packaging products. Playersare mainly aiming at producing innovative packaging designs for advertisingproducts as governments have restricted any kind of advertising for tobaccoproducts. Attractive packaging will help players gain a strong foothold in thecompetition. Besides this, they are also adopting collaborative efforts such asmergers and acquisitions, product development, and geographical expansion forgaining a competitive edge in the market.
GainMore Insights into the Tobacco Packaging Market Research Report
https://www.fortunebusinessinsights.com/tobacco-packaging-market-102865
