Tobacco Packaging Market Size and Future Scope

The increasing consumption of various tobacco-based products, such as smokeless tobacco, shisha/water pipes, cigarettes, cigars, and bidis, is driving the worldwide demand for tobacco packaging. These tobacco-based products contain the psychoactive mood-altering chemical called nicotine, which releases a mood-improving chemical called dopamine in the body. This brain chemical is responsible for the sensation of relaxation and pleasure, which, in turn, reduces stress. As per various reports, stress is one of the major factors behind growing tobacco-addiction in people, and it is primarily caused due to the surging work pressure and the highly prevalent toxic work culture all over the world.

According to the World Health Organization, “in 2018, 1.337 billion people, including 43 million in the age group of 13–15, used tobacco in 2018, as a measure to deal with their social and physical environment, personal views, deteriorating mental health, and peer pressure”. Hence, with the surging consumption of tobacco, the demand for tobacco-based products is soaring. Besides, the booming consumption of e-cigarettes is also propelling the global tobacco packaging market, which reached a value of $19,134.6 million in 2019.

Furthermore, the industry is predicted to demonstrate a CAGR of 3.7% from 2020 to 2030 (forecast period). Plastics, wood, metals, and paper are the most commonly used types of tobacco packaging materials across the globe. Out of these, the demand for paper is predicted to be the highest in the upcoming years. This will be because of the growing preference of people for paper for packaging cigarettes over other materials. Additionally, cigarettes are the most widely consumed tobacco-based products around the world.

“1 billion people consumed the almost 6 trillion cigarettes produced in 2019”, says the WHO. The other major factor driving the need for paperboard and paper-based tobacco packaging materials is their environment-friendly characteristics. Depending on packaging type, the tobacco packaging market is classified into primary and secondary. Between these, the primary category is expected to exhibit faster growth in the market in the coming years. This is credited to the fact that primary packaging can be easily removed unlike secondary packaging.

Apart from the aforementioned factor, the improved aesthetics and higher utility offered by this packaging method is also fueling its global popularity. Geographically, the tobacco packaging market will exhibit the fastest growth in the Asia-Pacific region in the coming years, as per the estimates of the market research company, P&S Intelligence. China will dominate the regional market in the coming years, on account of the existence of a large number of tobacco smokers in the country. As per the WHO, China was home to around 300 million or one-third of the smokers all over the world in 2019.

Thus, it can be safely said that the demand for tobacco packaging materials will surge sharply all over the world in the upcoming years, primarily due to the growing consumption of tobacco-based products, such as cigarettes and cigars, in several countries, on account of the increasing work pressure and stress.

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