Tobacco Packaging Market Size, Share & Trends Analysis Report By Material (Paper Boxes, Metals), By Packaging (Primary, Secondary), By Product (Boxes, Folding Cartons), By Region, And Segment Forecasts, 2024 - 2030

Report Overview

The global tobacco packaging market size was valued at USD 20.10 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 2.8% from 2024 to 2030. The rise in cigarette consumption is expected to increase the demand for cigarettes, which, in turn, is expected to fuel market growth over the forecast period. The introduction of tobacco that is smokeless for dipping or chewing and increasing penetration of e-cigarettes are some of the significant factors driving the market worldwide. Rising demand for cigarettes among female smokers is subsequently driving the market. An increase in workload and stress mainly in urban regions is also fueling the growth of the market. To get rid of stress, people are getting inclined towards using anti-depressants like cigarettes. The rising demand for Heated Tobacco Units (HTU), rising in branding and product differentiation, and innovative marketing strategies employed by the snus industry are the factors driving the tobacco packaging market.

Consumer interest on smokeless tobacco and specially heated tobacco units (HTU) has replaced smoking tobacco as a new trend that is spurring the demand for the product. In addition, the use of heated tobacco units has increased among consumers due to the impacts of tobacco use on their health. Smoking tobacco market covers all associated with generating, promoting, and selling of tobacco products mainly produced for smoking purposes. This diverse product market comprises of cigarettes, cigars, cigarillos, pipe tobacco and specialty products and has shaped a global tobacco market.

Branding and distinguishing products are essential elements driving the tobacco packaging market. Packaging is a strong tool for tobacco companies to build brand recognition, foster brand loyalty, appeal to new customers, and retain market share. Apart from looking good, packaging allows tobacco companies to express their brand identity and values. Choosing the finishes, materials, and packaging aesthetics influences the perceived quality and brand image and of the product.

The snus industry's innovative marketing strategies are also driving the increased demand for tobacco packaging. Utilizing packaging for product promotion has greatly increased the tobacco packaging industry. Packaging functions as an effective marketing tool, increasing brand recognition and giving details about the product. The necessity for these marketing tactics stems from the limitations placed on other methods of promoting tobacco.

The rise in smoking behavior among end-users is attributed to hectic lifestyles, increased workloads, and hectic work schedules.  Furthermore, hookah bar and pub culture trends have led to an increase in tobacco consumption, increasing the need for tobacco manufacturers to choose creative packaging solutions, which is expected to drive the market.

Advertisers have put an extra focus on tobacco packaging to differentiate between competing players to obtain maximum consumer share, help in the launch of new tobacco products, and increase brand loyalty. Furthermore, primary packaging contributes to the product's shelf life, while secondary packaging enables the distribution platform for optimal transport and cost-efficiency. During the forecast period, such factors are expected to drive the growth of the industry.

The strict guidelines by the government to package tobacco products in plain packaging with health warnings while covering a maximum area of the product reduces the attractiveness of tobacco products which is limiting the growth of the tobacco products. Furthermore, these products cause lung disease and cancer in humans, limiting sales of these products. These factors discourage consumers from purchasing the product, leading to a limit in the market growth.

Nicotine is the main component of tobacco, and it is a psychoactive mood-changing chemical that stimulates the release of dopamine. Dopamine release helps alleviate stress by inducing sensations of pleasure and relaxation. As the work pressure is rising day by day, the consumption of tobacco is increasing. These factors provide a better growth opportunity for the global market.

Material Insights

The paper & paperboard segment dominated the market and accounted for a share of 83.2% in 2023. Paper boxes are widely used in the tobacco packaging industry. It is cost-effective and environmental friendly, hence increasing popularity in many areas. Paper box packaging has a protective foil or plastic that protects the cigarettes or tobacco from not getting damaged, these may lead the market to grow in the upcoming years. The paper boxes are also very low in weight and can easily be carried anywhere that may be one of the factors driving the market. The increasing issues due to non-biodegradable or non-recyclable packaging like plastic packaging may lead the industry to grow.

As plastic causes different health diseases like skin cancer, people prefer to have paper made products. It may be one of the reasons for the growth of the market at the global level. Owing to stringent government regulations, the use of plastic is banned in many countries, so manufacturers are introducing bio-degradable packing such as jute box. This is expected to increase the demand for secondary packaging over the forecast period.

Packaging Type Insights

The secondary segment accounted for the largest market revenue share of 76.6% in 2023. Secondary packaging provides an extra layer of branding and distinction. Increasing demand for innovative cigarette boxes and rising consumption of cigarettes in social gatherings have driven the segment. Secondary packing protects not only tobacco products but also the original packing. These packaging are useful while storage, transportation, and wholesale, thereby boosting the segment growth.

The primary segment is expected to register the fastest CAGR of 3.2% during the forecast period. The main function of primary packaging is to seal the product completely and eliminate the probability of product contamination via internal/external interferences. It also serves the purpose of increasing the shelf life of the product, thereby making it desirable for prolonged consumption. An efficient primary packaging also prevents the product from getting damaged during transportation. Similar other features such as easy handling and storage are expected to positively influence the growth of this segment, thereby propelling the market growth. Primary packaging is integral to any tobacco product packaging, thereby leading to segment growth and constant increase in the market share.

Product Insights

The boxes segment dominated the market and accounted for a share of 48.4% in 2023. Paper boxes are utilized in the production of nearly all tobacco packets, leading to the growth of the industry. Many tobacco products are typically found to be stored in paper containers. During the forecast period, an increase in demand for paper boxes is anticipated as a result.

The folding cartons segment is projected to grow at a CAGR of 2.9% over the forecast period. Folding cartons are commonly constructed from materials that can be recycled or decomposed, making them a greener option when compared to certain types of packaging. Manufacturers have the option to select from a variety of sizes, shapes, and finish to design a distinctive packaging solution that enhances the product's attractiveness.

Regional Insights

Asia Pacific dominated the tobacco packaging market in 2023. China, India, and Japan are the leading countries for tobacco product manufacturing. China held a considerable share due to the increasing consumption of cigarettes and chewing tobacco. Moreover, the e-cigarette market is growing as e-cigarettes cause fewer health problems as compared to smoking tobacco. 

India Tobacco Packaging Market Trends

India tobacco packaging market dominated the Asia Pacific market in 2023. Culture influence plays a significant role for the tobacco packaging industry in India and its package designs are influenced with culture of that region. The Indian tobacco packaging market is inclined towards smaller and cheaper packaging solutions for catering the market segment consisting of price sensitive consumers.

North America Tobacco Packaging Market Trends

The tobacco packaging market in the North America was identified as a lucrative region in 2023. The U.S. tobacco packaging market is expected to grow rapidly in the coming years. The increased demand for packaging that incorporates statements such as warnings on the product or clarifications of the various health complications that achieve high consumer interest bolsters the demand for packaging solutions.

Europe Tobacco Packaging Market Trends

The tobacco packaging market is anticipated to witness significant growth in the coming years. Improvements in printing and packaging technologies enable manufacturers to create intricate and attractive designs with added anti-counterfeiting elements. Nevertheless, the region's expansion is slowing down due to strict regulations on tobacco use.

Key Companies & Market Share Insights

Some key companies in the tobacco packaging market include WestRock Company, Amcor plc, International Paper, and others. Major strategies taken by major players are mergers, divestitures, joint ventures, new product launches, and partnerships.

• WestRock Company offers solutions for corrugated packaging. It provides merchandising displays, paperboard, folding cartons, kraft papers, protective packaging, and pulp.

Recent Developments

• In July 2024, Philip Morris International Inc. announced an MoU with South Korea's producer of tobacco & nicotine products, KT&G. The agreement provides PMI an exclusive right to commercialize KT&G’s smoke-free products outside South Korea.

• In June 2024, Smurfit Kappa, a top global company specializing in packaging solutions, revealed that it has agreed to purchase Artemis Ltd., a Bag-in-Box plant in Bulgaria.

Tobacco Packaging Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global tobacco packaging market report based on material, packaging, product, and region.

• Material Outlook (Revenue, USD Billion, 2018 - 2030)

  • Paper & Paperboard

  • Plastic

  • Others (jute, metal, etc.)

• Packaging Outlook (Revenue, USD Billion, 2018 - 2030)

  • Primary

  • Secondary

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Boxes

  • Folding Cartons

  • Bags & Pouches

  • Others (cans, jars, etc.)

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE