Cigarette Paper Market

Cigarette Paper Market Outlook (2023 to 2033)

The global cigarette paper market is forecasted to rise from a valuation of US$ 1.36 billion in 2023 to US$ 1.67 billion by 2033. Fact.MR predicts worldwide cigarette paper consumption to rise at a CAGR of 2.1% from 2023 to 2033.

Cigarette smoking is a habit that has been prevalent across the world since the early 19th century. Since then, cigarette paper manufacturers have managed to develop long-term supply collaborations with cigarette manufacturing companies to ensure sustainability. The rise in cigarette smokers, particularly those going for roll-your-own cigarettes, is driving cigarette paper demand.

• Nearly 6.5 trillion cigarettes are sold every year globally, which translates to approximately 18 billion cigarettes per day.

Cigarettes are recognized as cylindrical objects that contain psychoactive substances. The porosity and permeability of the paper used to roll cigarettes vary. It is used to support the burning material inside of it and to provide ventilation, both of which help to regulate the cigarette's burning pace and consistency.

• With 62% market share, cigarette manufacturing application dominates as far as revenue generation for market players is concerned.

Pulp material is a differentiating factor when considering cigarette paper. Abundant availability of wood pulp marks its position as a primary pulp material for cigarette paper manufacturing. Also, rice straw and hemp are gaining consensus again with the addition of added flavors and low ignition propensity properties.

If there is any cigarette paper that is made from wood pulp and is white, it is bleached. Bleaching chemicals such as calcium carbonate and chlorine are extensively used in factory-made cigarettes.

The market is moving towards developing a more sustainable method for roll-your-own cigarette paper. Roll-your-own papers are bleached with substances such as ozone, hydrogen peroxide, and oxygen in place of chlorine and are gaining popularity in the rolling paper market.

The presence of top cigarette paper-producing firms and the rising popularity of rolling paper are the key factors anticipated to promote market growth during the forecast period. Increasing investments in safer practices and the introduction of new and innovative goods will also potentially present development prospects for cigarette paper producers over the coming years.

The primary force driving the market is the rising demand for ecologically friendly cigarette papers. Vendors are responding to consumers' growing environmental consciousness by creating more inventive, eco-friendly products to reduce their environmental impact.

Report Attributes	Details
Cigarette Paper Market Size (2023)	US$ 1.36 Billion
Forecasted Market Value (2033)	US$ 1.67 Billion
Global Market Growth Rate (2023 to 2033)	2.1% CAGR
Market Share of Cigarette Tissues (2023)	26%
China Market Growth Rate (2023 to 2033)	2.3% CAGR
India Market Growth Rate (2023 to 2033)	2.5% CAGR
Indonesia Market Size (2023)	US$ 182.9 Million
United States Market Growth Rate (2023 to 2033)	1.6% CAGR
Market Share of Cigarette Manufacturing 2023)	62%
Key Companies Profiled	Schweitzer-Mauduit International, Inc. Delfort Group AG Republic Technologies International Richer Paper Co., Ltd. Pura Group The Rolling Paper Company Glatz Group Hangzhou Huafeng Paper Co., Ltd. Miquel Y Costas Nippon Paper Papylia Co., Ltd. Mudanjiang Hengfeng Paper Co., Ltd. Moondust Paper Pvt. Ltd.

Why is Demand for Cigarette Paper Rising Globally?

“Growing Cigarette Smokers in Lower-income Socioeconomic Groups”

The magnitude of smoking is not only determined by the population of smokers but also by the sheer intensity and frequency of smoking. The bulk of smokers are men; however, an increase in female smokers, a rising standard of living, and the adoption of smoking as a fashion have diversified the scope for cigarette paper manufacturers.

Comparatively to the general population, those who are less educated and below the poverty line are more likely to start smoking. People living in poverty tend to smoke cigarettes nearly twice as much when compared with the population group having a family income three times the poverty rate.

Blue-collar workers are the most likely to start smoking at a younger age and tend to smoke more than white-collar workers. The smoking tendency of lower-income socioeconomic groups is relatively higher as compared to high earners and elite groups, thereby increasing demand from this population for cigarette paper.

“Legalization of Cannabis Providing Opportunities for Cigarette Paper Manufacturers”

Many countries have legalized the use of cannabis for both recreational and medicinal purposes.

• Currently, in the United States, 34 states have legalized cannabis for medicinal purposes, while ten states have even legalized it for recreational use.

Increasing legalization of cannabis by the governments of various countries aims to prevent illegal usage, trafficking, and crime associated with cannabis, thereby promoting the growing market for legalized cannabis across the world. An increase in the consumption of cannabis will substantially raise demand for roll-your-own cigarette paper over the coming years.

“Indirect Marketing Boosting Demand for Cigarette Paper”

The tobacco industry indirectly spends huge amounts of money on advertising, sponsorships, and promotion of products, even though there has been an active restriction on advertisements of cigarettes and related smoking products.

• A cumulative sum of US$ 9.5 billion was spent in 2018 by tobacco companies in the United States alone on advertising.

There has been a significant reduction in smoking rates in countries such as Australia, Brazil, and others where stringent tobacco control laws are enforced. However, this change is completely offset by mounting consumption in many other countries where such enforcements are not as strict.

Development of new brands and variants along with enriched attributes and packaging innovations plays a vital role for cigarette paper manufacturing companies to communicate with customers, promote their offerings, and build brand loyalty. Such initiatives are bolstering demand for cigarette paper as a result of increasing cigarette consumption.

What is Hampering the Sales Growth of Cigarette Paper?

“Changing Consumer Preference for Electronic Cigarettes over Conventional Cigarettes”

Consumer preference for electronic cigarettes over conventional cigarettes made in factories is limiting market growth. Government restrictions on tobacco and the sales of cigarettes limit market expansion. Although the tobacco industry is lucrative and makes huge profits, overall consumption has declined slightly over the past few years, primarily influenced by rising health concerns among the population.

Significant surge in prices and taxes on tobacco and other associated products is considered the most effective measure to reduce tobacco use. High taxes and prices combined with relevant tobacco control measures such as bans on advertisements and the prohibition of smoking in public have aided in reducing the consumption of cigarettes per person. Such initiatives are providing a barrier to market growth.

How Can New Companies Change the Cigarette Paper Landscape?

“New Manufacturers Concentrating on Offering Flavored and Colorful Cigarette Paper”

New businesses aim to preserve their brand image and increase customer loyalty by improving their services to meet customer needs and by examining consumer behavior trends. Start-ups are concentrating on offering flavored and colorful cigarette papers. Aspiring market players provide their products in a variety of shapes, tastes, and eye-catching packaging.

• A start-up based in the United States, Hempacco Co., Inc. produces and sells makes, and sells herbs, spices, and cannabinoids as well as flavored hemp rolling papers. It owns the Real Stuff™ brand of rolling papers and functional hemp cigarettes.

Country-wise Insights

What is Benefitting Cigarette Paper Producers in the United States?

“Growing Production of Environment-friendly Cigarette Paper”

• The market in the United States is anticipated to reach US$ 173.5 million by 2033.

A shift in consumer preference from factory-made cigarettes to roll-your-own cigarettes is driving market growth. The main factors anticipated to boost demand for cigarette paper are an increase in states legalizing cannabis for recreational use, increased spending capacity of consumers, and growing production of environmentally friendly cigarette paper.

What is the Stance of China in the Cigarette Paper Market?

“Easy Availability of Raw Materials for Cigarette Paper Manufacturing”

• Consumption of cigarette paper in China is valued at US$ 323.9 million in 2023.

China accounts for the high demand for cigarette paper due to the presence of well-established cigarette manufacturing companies. One of the biggest importers and exporters of tobacco is China. An increase in cigarette paper production and consumption, lower tax rates, and an abundance of raw materials have set the stage for China as the most attractive market for cigarette paper.

How are Cigarette Paper Sales Shaping Up across India?

“Rapid Expansion of Cigarette Manufacturing Industry”

• Sales of cigarette paper in India are valued at US$ 174.8 million in 2023 and are estimated to reach US$ 223.5 million by 2033.

The market in India is driven by a thriving cigarette manufacturing industry and a growing population. It is anticipated that greater promotion of various tobacco products on social media and satellite television channels would drive consumers to spend more on cigarettes.

• Around 29% of all adults in India who are 15 years of age or older use tobacco, according to the Global Adult Tobacco Survey India.

Why is Indonesia Prophesized to Be an Opportune Market?

“Surging Consumption of Cigarettes and Tobacco in Indonesia”

• The cigarette paper market in Indonesia is set to rise at a CAGR of 2.9% through 2033.

Mounting consumption of cigarettes and tobacco in Indonesia will bolster demand for cigarette paper over the forecast period. Indonesia is second on the list in terms of cigarette consumption. Cigarette manufacturers have set up their facilities for spontaneous demand fulfilment, providing the market with a substantial growth platform for Indonesia.

• In 2019, nearly 310 billion cigarette sales were recorded, which has been the driving force for market growth.

Category-wise Insights

Which Cigarette Paper Type is Leading in Terms of Revenue Generation?

“Cigarette Tissue Paper Preferred to Avoid Toxic Substance Inhalation”

Based on type, the market is classified into cigarette tissues, plug wrap paper, tipping paper, and rolling paper.

• At present cigarette tissues account for 26% of the global market.

Cigarette tissue paper minimizes the quantity of nicotine absorbed while simultaneously lowering the intake of potentially hazardous chemicals. The tobacco is wrapped in cigarette tissue paper. These benefits of cigarette tissues are anticipated to boost market revenue over the coming years.

Competitive Landscape

Key market players rely on a blend of organic and inorganic strategies to increase penetration across lucrative markets. These strategies include new developments, quality control, product launches, collaborations and partnerships with prominent cigarette manufacturers, and supply chain management.

For instance :

• SWM recently patented its LIP cigarette paper manufacturing technology and has exchanged its expertise for royalty.
• Republic Technologies' star brand OCB was modified with enriched with higher quality material and enhanced aesthetics, driving higher sales of its products.
• In 2021, Zomo Paper added colored rolling paper to its classic range. These comprise papers that are pink, slim silver, and black.

Key Segments of Cigarette Paper Industry Research

• By Type :

  • Cigarette Tissues
    • 1¼
    • 1½
    • Single Wide
    • Double Wide
    • King Size
  • Plug Wrap Paper
  • Tipping Paper
  • Rolling Paper

• By Pulp Material :

  • Flax
  • Wood Pulp
  • Hemp
  • Rice Straws
  • Esparto
  • Mixed

• By Basis Weight Range :

  • 23 to 40 gsm
  • 17 to 28 gsm
  • 28 to 40 gsm
  • 12 to 27 gsm

• By Refining :

  • Bleached
  • Unbleached

• By Application :

  • Cigarette Manufacturing
  • Roll Your Own

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa