Covid-19 impact on Tobacco Packaging Market Size to surge at 3.3% CAGR is expected to reach $21.7 Billion in 2025

The global tobacco packaging market size is anticipated to reach USD 21.7 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.3% over the forecast period. Growing consumption of tobacco and cigarettes among the young consumers is one of the major factors for the growth of the market. Another factor driving the market is increasing number of female smokers. Increase in stress and workload is also one of the factors boosting the market growth.

Increase in penetration of the tobacco products in China is expected to provide growth opportunities for the global market over the forecat period. Introduction of tobacco that are smokeless for chewing and increasing penetration of low cost tobacco products and e-cigarettes in the country are the key drivers. Moreover, increasing popularity of flavored tobacco products among the millennial population is fueling the growth of the market worldwide.

Secondary packaging held the largest market share in 2018. Increasing penetration of e-cigarettes and cigar in the social gatherings has driven the segment.Moreover, growing popuarlity of premium tobacco produduts among the young consumers is expected to have a positive influence on the market growth over the forecast period. Increasing number of cigar lounges in developed countries is fueling the demand for premium cigar proucts. This, in turn, is expected to increase the segment demand over the forecast period.

Paper boxes are increasingly used in tobacco packaging owing to rising penetration of enivornmental friendly packaging in the industry. It is a cost-effective alternative to plastic, and hence is gaining popularity in many areas. Lightweight and easy to carry factors are also boosting the segment growth.

Manufacturers are focusing on eco-friendly packaging. For instance, one of the prominent vendors, Amcor has increased its spending on developing bioderagable packaging and is expected to launch them by the end of 2025. Manufacturers are focusing on strategies such as mergers and acquisitions to increase their products offerings. In September 2017, Japan Tobacco Group acquiried Mighty Corporation to expand its product portfolio and geographic reach.

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www.grandviewresearch.com/industry-analysis/tobacco-packaging-market

Further key findings from the study suggest:

• By product, secondary packaging led the market and accounted for 60.3% share in 2018. The primary segment is expected to expand at the fastest CAGR of 3.7% over the forecast period
• By material, paper boxes dominated the global market with an overall revenue share of 67.8% in 2018
• Asia Pacific dominated the global tobacco packaging market in 2018 and accounted for 31.5% share of the total revenue. This trend is projected to continue over the next few years
• The industry is highly competitive with the main players including Amcor Ltd.; British American Tobacco; Philip Morris International Inc.; and ITC
• Various manufacturers are concentrating on new product launches, capacity expansion, and technological innovation to estimate existing and future demand patterns from upcoming product segments.