PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1235886
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1235886
According to Stratistics MRC, the Global Tobacco Packaging Market is accounted for $18.7 billion in 2022 and is expected to reach $25.1 billion by 2028 growing at a CAGR of 5.0% during the forecast period. An agricultural commodity termed tobacco is made by curing tobacco leaves. It is a source of the highly addictive stimulant nicotine and is used to make a variety of goods, including chewing tobacco, cigars, and cigarettes. The packaging is a crucial component because it acts as a barrier against moisture and protects the tobacco from bacteria, degradation, and fragrance transmission.
According to the Action on Smoking and Health (ASH), there are 1.1 billion tobacco consumers globally. This number is anticipated to grow to 1.6 billion over the forecast period.
The demand for smokeless tobacco has increased due to the growing negative consequences of tobacco smoke on smokers, both active and passive, and particularly on children. Snuff, gutka, gum, and chewing tobacco are among the smokeless goods that people use as an alternative to cigarettes. Specialty packaging materials are made to safeguard the items' quality from potential damage from moisture absorption and changes in ambient temperature.
The marketing of tobacco products is restricted by strict regulations in nations like the US, Canada, India, China, and the ASEAN nations. Tobacco products should be produced in plain packaging with health warnings covering around 50-90% of the surface area, which reduces their popularity. Additionally, tobacco harms humans by causing lung diseases and cancer, which hurts the sales of these products. These concerns can make consumers reluctant to buy the product, which would damage the market's growth.
The market will grow as packaging is used to advertise tobacco products. In this sector, packaging serves as a powerful marketing tool for advertising, developing brand recognition, and promoting products by offering product information. This is as a result of government restrictions on the promotion of tobacco products through other forms of advertising. Due to these restrictions, packaging is the only vehicle for product promotion.
Plain cigarette packaging reduces tobacco consumption, according to the World Health Organization (WHO). Government regulations that are strict would likely slow the adoption of packaging solutions and harm market revenue growth. Moreover, another factor that is anticipated to hinder the growth of the worldwide tobacco packaging market in the coming years is the growing awareness among consumers about the harmful health impacts of smoking, such as oral cancer and respiratory issues.
Early on, governments were aware that the virus was harmful and potentially deadly. For this reason, they implemented lockdowns and quarantines. Due to their inability to halt the virus's transmission, these were only temporary. However, the effects on the majority of firms worldwide were certainly negative. The majority of companies had to temporarily halt operations or drastically reduce them. Several companies were forced to shut down since they couldn't continue to be profitable.
The paper and paperboard segment is anticipated to have the largest share during the forecast period as the largest material used to package tobacco is paperboard. It is a heavy paper-based substance that is used to create goods like cigarettes and cigars. Paperboard's features, including its light weight, foldability, rigidity, and printability, are credited with driving the segment's expansion. Paper is the most commonly used material by businesses due to the ease with which it can be used to roll or retain tobacco for cigarettes. The porosity of the paper used in cigarettes must be compatible with the type of tobacco blend because this influences the cigarettes' smoke.
As secondary packaging protects primary packaging and enables grouping of primary packages during storage, wholesale, and transportation, secondary packaging is predicted to experience the highest growth during the projection period. Moreover, the secondary packaging segment of the tobacco packaging industry will experience strong market growth as a result of the rising demand for creative cigarette boxes and the rising demand for cigarettes and cigars.
Market expansion in the Asia-Pacific region is anticipated to have the largest share during the forecast period due to the government's efforts to reduce cigarette usage by increasing cigarette prices and enacting more cigarette taxes. The increased taxes, for instance, will have an effect on traditional cigarette sales in Japan and India, which will offer a lot of opportunity for the development of tobacco products. Additionally, unlike other nations that make plain boxes, this generates creative and attractive cigarette packaging.
Due to factors including the fact that China's tobacco industry promotes a brand and a visual culture that are fundamentally different from those of other nations. In addition to inspiring a strong and deep sense of traditional culture's history, the signs and designs on cigarette packaging also incorporate a sense of national pride, which promotes tobacco usage and grows the country's market for tobacco packaging in this region.
Some of the key players in Tobacco Packaging market include: Sonoco Products Company, Siegwerk Druckfarben AG & Co. KGaA, International Paper, Schweitzer-Mauduit International, Inc., WestRock, Innovia Films, ITC Limited, Amcor Limited, Phillip Morris International Inc., Mondi Group, Treofan Film international, Smurfit Kappa, Stora Enso Oyj and Japan Tobacco International.
In 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.
In 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.
In 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.
In 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.
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Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances