The tobacco packaging market 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.
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.
Major 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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