20 January 2020
Tobacco refers to any of various plants of the genus Nicotiana, which are widely cultivated for their leaves, which are dried, and processed chiefly for smoking cigarettes, cigar, and pipes. Since 1964, when conclusive evidence regarding deadly effects of tobacco consumption has been found, a sharp decline in government support for producing and manufacturing of tobacco has been witnessed. There are many countries and nations which has imposed restrictions on tobacco consumption, still the growth of tobacco production and consumption is witnessing steady growth. China accounts for more than 40% of world tobacco production. Tobacco products are often heavily taxed as an incentive for people not to smoke and to gain revenues for governments. The global tobacco market was valued at $646 billion in 2019 and is expected to grow with CAGR of 1.8% during 2020-2030 to reach value of $786.1 billion in 2030. Latin America, Africa, and Asia-Pacific are the regions which are expected to witness above industry average growth during the forecast period. Economic development in the emerging economies, growing disposable income of consumers, huge consumer base, and increasing work life stress are the major factors which will drive the demand for tobacco products in region such as Latin America, Africa, and Asia-Pacific. Growing penetration of online sales along with growing demand for premium packaged products will further lift the tobacco industry across the globe.
This report defines tobacco packaging as anything used to contain, protect, preserve or present products in the tobacco industry. The tobacco packaging market is at the maturity stage. For decades, tobacco packaging industry has witnessed extra-ordinary growth. In last few decades significant regulatory challenges have impacted the market adversely. This has led to slow growth of the market and rise in illegal market for tobacco. Regulations regarding plain packaging for tobacco products, warning regarding impacts of tobacco consumption on health, and others has resulted in reduced consumption of tobacco products. Many governments are taking initiatives to reduce tobacco consumption in different parts of the globe. However, huge consumer base of tobacco products in developed and developing economies are presenting significant growth opportunities for both new and existing industry participants. In this study, we have segmented tobacco packaging market by packaging type (primary packaging, secondary packaging, and bulk packaging); by packaging material (metal, paper, flexible plastics, and others); by application (cigarettes, cigar, and others).
The global market for tobacco packaging is expected to spread at a moderate pace over the coming years and this market growth is expected to present a new range of opportunities to the existing and new market players. The global tobacco packaging market is primarily driven by factors such as changing consumer lifestyle, economic development in the emerging economies, increasing disposable income of consumers, and increasing work life stress.
Increasing Population & Growing Per Capita Income in Developing Economies
• Tobacco products such as cigarettes, cigar, and others are usually packaged in small packs, packages, and cartoons.
• Growing per capita income along with increasing population in Asia-Pacific region along with LAMEA is driving the demand for tobacco products owing to changing life style and increasing urbanisation and hence, driving the demand for tobacco packaging in these regions.
• A huge consumer base, dependable supply chain, significant investment towards capacity expansion, and benefits of economies of scale are the major features of tobacco packaging market in developing economies such as China, India, Brazil, and others.
Changing Lifestyle in Emerging Economies of the World
• Growing disposable income and increasing urbanisation in the emerging economies of the world has significantly led to change in lifestyle of a huge consumer base in these countries.
• This increased disposable income along with busy lifestyle are among the major factors driving the market for tobacco and packaging used for it.
• Further, the presence of a wide range of retail outlet and increasing penetration of online marketing are acting as catalyst towards growth of the tobacco packaging market.
Increasing Work Life Stress
• Rising inflation rates in developing economies and middle-income countries along with increasing urbanisation has led to increase in work life stress among the consumers. This factor is leading to increased consumption of tobacco products in these regions.
• Further, growing need of consumers to make ends meet in both developed and developing economies regarding both basic and premium requirements has led to increased stress among consumers.
• All the above-mentioned factors are driving the demand for tobacco products across the globe leading to increasing demand for tobacco packaging products.
Growth in Premium Tobacco Packaging Products
• There is different category of consumers for whom premium products plays significant role in buying decision.
• Increasing demand for premium tobacco products such as cigar and cigarettes in both developed and developing economies is driving the demand for packaging used with those products.
• Metal & wood cases and containers are among the premium packing products used in the tobacco packaging industry.
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