US tobacco packaging market decreased by 3% in 2012

Press Release   •   Jul 05, 2013 10:50 BST

Unit volume sales within the US tobacco packaging market decreased by 3% in 2012, declining to 46.5 billion units.

Metal tins performed well over the past four years, growing by 58% in overall units. Growth slowed in 2012, up by only 1%. This was helped by a large number of moist snuff products that were sold in this format.

Recently, the packaging faced some pressure from alternative forms of packaging, such as other rigid plastic containers that are being used with more frequency in moist snuff products. Still, many consumers are brand loyal, and growth of metal tins is equally linked to the popularity of brands that sell exclusively in metal tins.

Sales of cigarettes, which make up 93% of all tobacco packaging in 2012, were still falling due to the overall continued decline in US smokers. Antismoking campaigns are very pervasive in the US, in addition to the prohibitive taxation and regulations that are imposed almost every year.

This is typically worsened in times of budget crises for both states and federal governments, as taxing tobacco is normally approved of by the public as smoking is seen as something that is costly to society as a whole, due to medical expenses that the state normally needs to pay.

Electronic cigarettes continue to see explosive growth in the US and threaten various areas of tobacco. The e-cigarette device allows a smoker to inhale vaporised nicotine, either through heat or through electrically powered ultrasonics.

The category has matured over the years, and e-cigarette products have gone from being a product for hobbyists, sold mostly in speciality shops, to receiving wider distribution in c-stores and other retail locations where tobacco products are sold. Many users of e-cigarettes use them to replace their own smoking habit.

For more information on the US tobacco packaging market, see the latest research: Tobacco Market Research

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