The Chantler Review found it was 'very likely' that unbranded plain packed tobacco would reduce both the uptake and prevalence of smoking.
British American Tobacco has strongly hinted at a legal battle, stating: "We believe plain packaging fails to respect our minimum guaranteed rights on trade mark protection, contravenes EU law, affects property rights under UK law and infringes the UK's obligations under international law."
Japan Tobacco International also warned it would "if necessary challenge" measures such as plain packaging which would "without justification deprive JTI of its most significant property".
Rival firm Philip Morris pointed towards the experience in Australia, where it insisted plain packaging had failed to cut smoking rates and not deterred youth smokers.
"The government should not rush to proceed without holding the full impact assessment they have promised. Plain packaging has failed to cut smoking rates, has not deterred youth smokers and has been accompanied by a dramatic growth of the black market."
Imperial Tobacco also hinted at legal action, saying a number of countries have filed complaints with the World Trade Organisation, stating that plain packaging violates international rules on intellectual property and international trade obligations.
Mike Ridgway, who acts as a spokesman for seven packaging manufacturers operating in the tobacco sector, said the government had pledged the review would be an evidence-based decision, but no evidence had been produced.
"The packaging industry supports regulation but states that this needs to be effective; and in addition no more should be introduced before the effects of previous measures, like the display ban, have been fully assessed."
Shares in Imperial Tobacco and British American Tobacco dropped by about 0.5% after the government announcement.
Britain's tobacco market is worth about £17bn a year, according to Euromonitor International, and Britain generated £8.6bn in cigarette taxes last year.
