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Tobacco Packaging Market 2019 - Industry Size, Share, Dynamics, Status, Outlook and Opportunities: 2024

(, June 26, 2019 ) The tobacco packaging market was valued at USD 15.67 billion in 2018 and is expected to reach a value of USD 18.96 billion by 2024, at a CAGR of 3.32%, during the forecast period 2019 - 2024. The increased importance of packaging for advertising will drive the tobacco packaging market in the forecast period.

- Primarily owing to the increasing consumption of cigarettes and tobacco, the market for tobacco packaging is witnessing a significant growth potential. Around 6.5 trillion cigarettes are sold each year around the world, which translates to roughly 18 billion cigarettes per day.
- Moreover, there are 1.1 billion tobacco users in the world, according to the Action on Smoking and Health (ASH). This number is expected to increase to 1.6 billion over the next twenty years.
- According to the World Health Organization (WHO), tobacco kills more than seven million people each year while more than six million of these deaths are the result of direct tobacco use, around 890000 results from non-smokers being exposed to second-hand smoke.
- Therefore, the government imposes restrictions on the smoking of cigarettes as well as for product sales. This factor is the major challenge for the tobacco packaging market growth. Most governments have formulated regulations restricting the use of attractive packing of these products.
- Besides, companies in tobacco packaging are focusing on adopting creative and advanced packaging technologies that are sustainable and energy efficient. This focus is expected to result in a shift to renewable energy sources using cost-effective packaging strategies. They are also engaged in the development of recyclable and flexible cigarette packaging that is more attractive to consumers by better protecting the tobacco within.

Scope of the Report
Tobacco packaging is a unique packaging where manufacturers can only print the brand name in a mandated font, size, and place. They are not allowed to used colors, images, companies logos or trademarks. Furthermore, they have to add mandated health warning and toxic constituents on the packaging. The appearance of all tobacco packs is standardized, including the color of the pack.

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Key Market Trends
Secondary Packaging to Witness Significant Demand

- Like other sensitive goods, tobacco and cigarettes require packaging which provides barrier properties in order to deliver the product to the customer in optimum condition.
- Secondary packaging, such as flexible packaging has become the traditional format for tobacco and typically takes the style of re-closable or re-sealable laminated film pouches and bags. These packs often have an additional flow-wrapped outer film, all contributing to the barrier requirements.
- Due to a combination of factors, such as low-cost, utilization in laminations, along with its perceived proper environmental credentials and tactile effect, flexible packaging is widely regarded in the tobacco industry.
- Anti-smoking campaigns and government regulations are prevalent globally, specifically in the Germany, and prohibitive taxation & regulations have increased, over the last few years which has to lead to the decline in consumption of cigarette smokers. Thus, tobacco packaging is expected to post a slow CAGR during the forecast period.
- Regardless the macro factors, such as booming retail sector, increase in online sales, technological advancements, and other factors, like increase in a number of new smokers, etc. are expected to contribute to the demand for tobacco packaging products, in the market.

North America to Hold a Major Share

- In North America, cigarettes, which accounted for a significant share of around 90% of tobacco packaging units sold, determine the performance of the tobacco packaging market. Also, smokeless tobacco consumption is a critical trend in the tobacco market.
- In the United States, according to the American Lung Association, an estimated 3.8% of adults are currently smokeless tobacco users, with the usage being much higher among men than women (6.8% vs. 1.0%).
- Paperboard boxes are expected to experience solid gains due to favourable environmental profile. Cigars & smokeless tobacco are expected to provide unit volume growth in tobacco packaging, thus it will drive the market in the region.

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Competitive Landscape
The major companies include WestRock CompanyWest, Amcor Limited, The International Paper Company, Smurfit Kappa Group PLC, Phillip Morris International Inc., and Sonoco Products Company, among others. The market is neither fragmented nor consolidated because there is no major competition among players. Therefore market concentration will be moderate.

- January 2018 - Amcor had pledged to develop all its packaging to be recyclable, or reusable by 2025. And, also planned to focus on significantly increasing its use of recycled materials, and driving consistently more recycling of packaging around the world. This commitment is aimed at establishing the company, as a leader in recyclable packaging

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support

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Major Point of TOC:






Chapter Six: Competitive Landscape



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