Fueled by an increase in cannabis legalization measures, the global rolling papers market is estimated to reach a valuation of US$679 million in 2022 and expand to US$1.1 billion by 2032, according to research by Future Market Insights (FMI).
FMI projects sales of rolling papers sales to grow at a compound annual growth rate (CAGR) of 5.1 per cent between now and 2032.
Recreational cannabis legalization efforts across the globe are expected to boost demand, and FMI expects increased popularity of the roll-your-own method of smoking to bolster sales in the years to come.
U.S. rolling papers sales are expected to grow at a 3.7 per cent CAGR, reaching a valuation of US$ 164.8 million by 2032.
China will account for the majority of consumer demand in East Asia, with total sales reaching US$136 million by 2032.
Read more: Global cannabis sales grow 41% in 2021: BDSA
Initially, paper scraps and leaves were used as smoking materials. Today, commercial rolling papers are produced using non-wood plant fibres including flax, hemp, sisal, rice straw, and esparto.
The hemp segment is estimated to account for approximately 60 per cent of the total market share in 2022.
“Legalization of recreational cannabis consumption across various states and countries, along with surging demand for hemp-based rolling papers for a better smoking experience will continue driving sales in the market over the forecast period,” said an FMI analyst.
Rolling papers are manufactured in a range of thickness measured in grams per square meter, or GSM. FMI expects demand in the 10 to 25 GSM segment to increase at a 4.6 per cent CAGR through 2032.
Sales are expected to increase as manufacturers transition to online sales platforms and marketing campaigns to expand their geographical reach. Online platforms should also help consumers compare prices and make better purchasing decisions, leading to additional sales.
Schweitzer-Mauduit International, Inc. (NYSE: SWM), Delfort Group AG and Republic Technologies International are currently the top companies operating in the global rolling papers market.
Schweitzer-Mauduit International stock was down 0.62 per cent Thursday, dropping to $27.06 on the New York Stock Exchange.