US tobacco packaging market experiencing a decrease in sales

Press Release   •   Jul 23, 2012 15:15 BST

The US tobacco packaging market experienced a decrease in unit volume sales of 3% in 2011, declining to 49.1 billion units. This negative compound annual growth rate (CAGR) is expected to continue through to 2016, with losses of 2% expected due to further declines in cigarette volume sales.

This decline in the market can be attributed to numerous factors including, high taxation, onerous regulation and cultural disdain for tobacco products.

Furthermore, in 2009 the US Congress passed a law granting the Food and Drug Administration (FDA) regulatory power over the tobacco market. Since this law was enacted, the FDA has regulated the tobacco industry even further than it was previously, implementing bans on flavoured cigarettes, and limiting the claims that can be made on packaging.

Metal packaging unit volume sales for tobacco products grew by 8% in 2010, the fastest growth of any pack type, due mainly to the growing popularity of metal tins used with smokeless tobacco, and to a lesser extent the metal tubes used in cigars packaging.

The strongest growth in the US tobacco packaging market will continue to come in the form of cigars and smoking tobacco, though volumes in both categories will remain a tiny fraction of the volume sales of cigarettes.

As regulations continue to restrict cigarette use and consumers are increasingly aware of the health hazards associated with smoking, cigarette sales will continue to drop, overwhelming the ability of other categories to offset those declines.

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

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