WORLD
A new report by Marketsandmarkets says that packaging for the tobacco industry will grow from US$14.27 billion in 2017 to US$16.65 billion by 2022, at a CAGR of 3.1%.
According to the report, the tobacco packaging segment is witnessing considerable growth due to the rise in per capita income and stressful lifestyles. Equality laws for women have developed a new market for female smokers, which is another key factor fueling the growth. Tobacco packaging has come across new opportunities due to the growing population and the technological advancements.
The paper box segment is expected to have a high growth rate during the forecast period. Due to rising issues regarding the non-biodegradable nature of plastic and metal packaging, paper box packaging is highly preferred by manufacturers.
The secondary segment accounted for the largest share in 2016, and is also projected to grow at the highest CAGR over the next five years. An increase in consumption of cigarettes in social gatherings and rise in demand for innovative cigarette boxes have boosted the market for secondary packaging.
Countries such as China and Japan are expected to witness high growth in the tobacco packaging segment due to rapid economic expansion.