Tobacco Paper Market Size, Share, Trends, Growth and Forecast 2030

Tobacco Paper Industry Prospective:

The global Tobacco Paper market size was worth around USD 755 million in 2022 and is predicted to grow to around USD 1124 million by 2030 with a compound annual growth rate (CAGR) of roughly 5.1% between 2023 and 2030.       

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Tobacco Paper Market: Overview

A crucial step in the production of cigarettes is the use of tobacco paper. This particular kind of thin paper has undergone specific processing so that it may be rolled into cigarettes without ripping or breaking. Depending on the necessary qualities, cellulose pulp, and cotton linters can be combined with certain chemicals to create tobacco papers. Sodium Carboxymethyl cellulose, often known as Sodium CMC, is a typical ingredient that makes it simpler to break down tobacco plants for use in other goods like filter tips and rolling sheets.

Key Insights

• As per the analysis shared by our research analyst, the global Tobacco Paper market is estimated to grow annually at a CAGR of around 5.1% over the forecast period (2023-2030).
• In terms of revenue, the global Tobacco Paper market size was valued at around USD 755 million in 2022 and is projected to reach USD 1124 million, by 2030.
• The growing consumption of tobacco products such as cigarettes and cigars is expected to propel the global tobacco paper industry growth.
• Based on the paper grade, the cigarette tissue segment is expected to dominate the market over the forecast period.
• Based on the material, the wood pulp segment is expected to hold a significant market share over the forecast period.
• Based on the weight, the 10 gsm ­ 25 gsm segment is expected to dominate the market over the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

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Tobacco Paper Market: Growth Drivers

Increasing consumption of tobacco products drives market growth

The increasing consumption of tobacco product such as cigarettes and cigars are expected to drive the tobacco paper market growth during the forecast period. For instance, according to the World Health Organization, 80 percent of the 1.3 billion tobacco smokers worldwide are in low- and middle-income nations. 36.7% of males and 7.8% of women worldwide used cigarettes in 2020, totaling 22.3% of the population. In addition, according to journal publications, India is the nation with the second-highest percentage of tobacco smokers in the world (after China), with 267 million users. In the United States, 100 million persons aged 15 and older smoke tobacco, including cigarettes and bidis.

Tobacco Paper Market: Restraints

Growing health concerns limit the market growth

Smoking rates have decreased throughout most of the world as public knowledge of the health dangers of tobacco use has grown. This reduction, which may lead to a decline in the demand for tobacco paper products, has been attributed to anti-smoking efforts and stronger laws. According to the National Institutes of Health, smoking accounts for 79% of lung cancer in women and 90% of lung cancer in men. In addition, smoking causes 90% of lung cancer fatalities. Compared to non-smokers, lifelong smokers have a 20–40 times increased chance of developing lung cancer.

Tobacco Paper Market: Opportunities

The growing popularity of roll-your-own (RYO) cigarettes offers an attractive opportunity for market growth

Global demand for Roll-Your-Own (RYO) tobacco products is being driven by the growing preference for hand-rolled or handcrafted cigarettes, which are less expensive than cigarettes that are manufactured in factories (FM). The colors, textures, and tastes of rolling papers are varied. The ripping strength, thickness, air permeability, and burning speed control of these sheets are all suitable. Particularly among younger generations, there is a very significant demand for roll-your-own cigarettes. This is because tobacco paper rollers have been developed, which enable users to roll cigarettes more efficiently and with less effort. The rise of the tobacco paper market globally is now being driven by these trends. During the anticipated term, the industry's growth will also be aided by the increasing demand for environmentally friendly cigarette papers. Environmentally friendly items are being introduced by manufacturers, including cotton grown in fields, tobacco papers made from fruit and vegetable pulp, and treeless cigarette rolling papers.

Tobacco Paper Market: Challenges

Emerging alternatives pose a major challenge to market growth

Traditional tobacco products now face competition from non-combustible tobacco substitutes including heated tobacco products and e-cigarettes. These substitutes frequently make use of unique materials and technology, which lowers the need for conventional cigarette papers. According to the Annual National Youth Tobacco Survey organized by the FDA, it is found that in 2022, more than 2.5 million middle and high school children in the United States will have used e-cigarettes, or roughly 1 in 10. In middle school, 3.3% (380,000) and 14.1% (2.14 million) of children reported using e-cigarettes right now. Thus, the aforementioned stats negatively impacted the tobacco paper market growth over the forecast period.

Tobacco Paper Market: Segmentation

The global Tobacco Paper industry is segmented based on paper grade, material, weight, and region.

Based on the paper grade, the global market is bifurcated into plug wrap paper, rolling paper, tipping base paper, and cigarette tissue. The cigarette tissue segment is expected to dominate the market over the forecast period. The thin paper that forms the outer layer of the cigarette rod and encloses the tobacco filler in a cigarette is known as cigarette tissue. It is made to burn consistently and evenly, giving a comfortable smoking experience. Additionally, to address shifting customer preferences, legal restrictions, and environmental issues, cigarette tissue must constantly innovate. To improve the smoking experience and address environmental concerns, manufacturers may create novel paper materials and technologies. Thereby, driving the segment growth.

Based on the material, the tobacco paper industry is bifurcated into rice straw, flax, wood pulp, sisal, hemp, and esparto. The wood pulp segment is expected to hold a significant market share over the forecast period. Tobacco paper is made from wood pulp, which is one of the main raw materials used in paper manufacturing. Wood pulp is the main raw material used to make the paper used in cigarettes and other tobacco products, hence it plays a significant part in the tobacco paper business.

Based on the weight, the tobacco paper industry is bifurcated into up to 10 gsm, 10 gsm ­ 25 gsm and more than 25 gsm. The 10 gsm ­ 25 gsm segment is expected to dominate the market over the forecast period because this weight range is used to produce thin, ultra-thin sheets for RYO cigarette rolling paper. These papers are frequently preferred by consumers who smoke hand-rolled cigarettes and cannabis joints.

Tobacco Paper Market: Report Scope

Tobacco Paper Market: Regional Analysis

Asia Pacific is expected to dominate the market growth over the forecast period

The Asia Pacific is expected to dominate the global tobacco paper market over the forecast period. The demand for tobacco paper is mostly driven by the region's significant smoking population. With over 300 million smokers actively puffing away, China is the world's largest producer and user of tobacco, making up nearly one-third of all smokers globally. Regional market expansion is also influenced by increased disposable income and population growth. The major markets in the area are China, Vietnam, the Philippines, Malaysia, India, Thailand, Indonesia, and Bangladesh. Additionally, throughout the projected period, the regional tobacco paper market would rise due to the growing popularity of tobacco products and cigarettes.

On the other hand, North America is expected to hold a significant market share over the forecast period. Several well-known producers and suppliers of a variety of tobacco paper goods, such as cigarette tissue, cigar paper, rolling paper, and filter paper, are present in the North American tobacco paper market. These businesses serve both domestic and foreign markets. Thus, this is expected to drive the market growth in the region.

Tobacco Paper Market: Competitive Analysis

The global Tobacco Paper market is dominated by players like:

• The Rolling Paper Company
• Delfort
• BMJ
• Glatz
• Republic Technologies
• CTM
• Modern Architecture Design
• Hengfeng
• Hellenic Cigarette Papers S.A.
• Hongta Blue Eagle Paper
• Hangzhou Huafeng
• Hunan Xiangfeng
• Jiaxing Min Feng
• PT BUKIT MURIA JAYA

The global Tobacco Paper market is segmented as follows:

By Paper Grade

• Plug Wrap Paper
• Rolling Paper
• Tipping Base Paper
• Cigarette Tissue

By Material

• Rice Straw
• Flax
• Wood Pulp
• Sisal
• Hemp
• Esparto

By Weight

• Up To 10 gsm
• 10 gsm ­ 25 gsm
• More Than 25 gsm

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa