Absolute Market Insights projects that the global tobacco paper market will reach US$1,565 million by 2027, growing at a CAGAR of 2.5%, compared to US$1.211 billion in 2018.
The significant lift is attributed to the escalation in the popularity of roll-your-own (RYO) cigarettes, especially among millennials. Cheap cost associated with RYO products, sometimes including rolling papers or cigarette tubes, as compared to the factory-made cigarettes is among the major driving factors propelling the tobacco paper market.
Increasing adoption of electronic cigarettes, especially among teens, is presumed to hamper the growth of the tobacco paper market.
However, stringent regulations mandated by government regulatory bodies on limiting or restricting the sale of flavored electronic cigarettes is pushing electronic cigarette smokers to switch from their smoking methods to RYO smoking practices.
In Europe, the notion of roll-your-own cigarettes has gained significant traction over commercially manufactured or classic cigarettes, which has resulted in an increase of 1.4% expenditure on loose tobacco. According to the German Public Health Association (DGPH), sale of factory-made cigarettes has declined by 2.5% with around 67 billion cigarettes.
The decline in the sale of factory-made cigarettes was accredited to increasing sales of loose tobacco, including roll-your-own cigarettes among smokers with an overall increase of 1.1%. With initiatives taken by various government bodies across the countries of Asia Pacific on banning the alternative methods of smoking is another factor contributing in the increased adoption of roll-your-own cigarette smoking among young population in this region.
Such factors are projected to positively influence the growth of the tobacco paper market.