London, 15 March 2016: Technavio, the independent tech-focused global research firm, has published a report on the global tobacco packaging market, which is anticipated to grow at a moderate CAGR of over 2% during the period of 2016 to 2020.
Global tobacco packaging market overview
Source: Technavio
Recent innovations pertaining to the development of new tobacco products and packaging solutions will foster the prospects for growth in this market until the end of 2020. The global market for tobacco packaging is growing steadily due to the introduction of many innovative solutions like new flavors, reduction in tar level, and the introduction of 64 mm cigarettes. In India, the ITC group has launched cigarettes such as Gold Flake Century, Scissors, Menthol, and Capstan 64 mm to gain popularity among price-sensitive consumers. Apart from new product launches, the vendors in this market are also developing new solutions to reduce the total cost of production and distribution of cigarettes and other tobacco products.
“Flexible packaging products are sustainable compared to other forms of packaging as they are lightweight and do not emit high amounts of carbon dioxide. It also helps to promote the sale of products and protects tobacco-based products during transit. To bolster product sales, vendors are increasing their investments in R&D to develop packaging materials that can be recycled and are friction, moisture, and heat-resistant,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
“A major reason behind the growth of this market is the end user’s rising demand for e-cigarettes. North America and Europe are the two major regions where the demand for e-cigarettes is high. The US is considered to be the largest market for e-cigarettes in the world as it accounts for 37% of the global e-cigarette market. The global demand for e-cigarettes will be further impelled by the growing number of end users in North America and Europe.”
Key Market Drivers –
- Innovations in tobacco products and packaging
- Increased demand for cigarettes
- Increasing tobacco demand from female customers
- Demand from developing countries
Key Market Trends –
- Technological innovations
- Growing popularity of sustainable packaging
- Rising demand for E-cigarettes
Key Market Vendors:
- Amcor
- ITC
- International Paper
- Innovia Films
- PMI
To define the market circumstances in the next 3-4 years, Technavio analysts have conducted in-depth analysis of the impact of market drivers, challenges, and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
If you are interested in more information on this topic and our upcoming research on the Global Tobacco Packaging Market 2016-2020, please send an e-mail to media@TechNavio.com.
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