Packaging Market to Exceed $20 billion

Source from:  Tobaccoreporter 01/28/2021

The global market for tobacco packaging is likely to reach $20.45 billion by 2027, representing a compound annual growth rate of 3 percent, according to a new report published by Fortune Business Insights. In 2019, the market was valued at $16.15 billion.

The global tobacco packaging market size witnessed progressive growth in the past few years with the advent of smokeless tobacco products worldwide. These products, including gutka, chewing tobacco, snus, snuff and gum act as substitutes for cigarettes.

In terms of materials, the market is dominated by the paperboard segment as it is widely used for making cigars, cigarettes and other products. Paperboards are thick and based out of paper with properties such as printability, foldability, rigidity, and lightweight nature. The second most used tobacco packaging material is paper, accounting for 17.6 percent of the market.

In geographic terms, the Asia Pacific region plays a prominent role in the tobacco packaging market, earning a revenue of $9.3 billion in 2019. Dominant markets include Japan, China, and India. Europe ranks second 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, according to the authors. 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.