Tobacco Packaging Market to Register 3.7% CAGR during 2020–2030
The consumption of
tobacco-based products is growing rapidly across the globe, a major cause for
which is the surging work pressure. As per the World Health Organization (WHO),
in 2018, about 1.337 billion people, among which 43 million were in the age
group of 13–15 years, consumed tobacco, primarily as a measure for dealing with
their physical and social environment, deteriorating mental health, personal
views, and peer pressure. Tobacco contains nicotine, a psychoactive
mood-altering chemical, which stimulates the release of dopamine in the brain,
thereby creating a relaxed and pleasurable sensation and helping in relieving stress.
It is because of this
growing consumption of tobacco across the globe that the demand for tobacco
packaging is increasing. Different kinds of materials are utilized for packing
dried tobacco leaves and other tobacco containing products for maintaining
their aroma and quality and protecting them from natural degradation. According
to a report by P&S Intelligence, the global tobacco packaging market attained a value of $19,134.6 million in
2019 and is predicted to advance at a 3.7% CAGR during the forecast period
(2020–2030). Metals, paper, plastics, and wood are the major material types
that are utilized for packaging loose tobacco.
Out of these, the
demand for paper was the highest in the past and the situation is expected to
remain the same during the forecast period as well. Paper is the most common
preference for packing cigarettes, which is further the most extensively used
tobacco products across the globe. As per the WHO, 1 billion people consumed
approximately 6 trillion cigarettes that were manufactured in 2019. In addition
to this, paper and paperboard materials are eco-friendly in nature, which
increased their utilization for packaging tobacco. Other than this, the demand
for plastics is also projected to rise considerably in the near future.
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This is owing to the
wide and easy availability of plastic packaging materials/containers. These
products are further available in different sizes and shapes. Plastic materials
are further low in weight and can be transported with ease, which is also resulting
in their increasing adoption. Primary and secondary are the two packaging
types, between which, the demand for secondary packaging has been higher up
till now. Secondary packaging acts as a barrier against different environmental
factors, including aroma dissipation and moisture. This packaging, in the form
of corrugated boxes, cartons, and trays, is utilized for holding the individual
units together when they are being transported to consumer or point of sale.
Other than this, the
demand for primary packaging is also expected to increase in the years to come,
which can be ascribed to the fact that this kind of packaging can be removed
easily by people. Moreover, the attractive appearance and high utility of
primary packaging is also predicted to lead to their growing adoption.
Geographically, Asia-Pacific is the largest tobacco packaging market due to the increased consumption and
production of tobacco in China and rising disposable income of people in the
region.
Hence, the demand for tobacco packaging is growing due to the surging consumption of tobacco-based products for dealing with increasing stress levels.