The head of the influential CBI said that introducing the plain packaging policy could harm the U.K.'s "global reputation for IP."
"Customers identify with brands, so companies are understandably uneasy at the prospect of a key part of their identity being undermined. There is therefore a sound business case for voting against the proposals in Parliament," CBI Director-General John Cridland said in an article published on the organization's website.
Australia was the first country to introduce plain packaging laws, which are being challenged at the World Trade Organisation by the governments of Ukraine, Cuba, Honduras, the Dominican Republic and Indonesia with regards to potential violations of international trade agreements.
Nonetheless, France is mulling similar laws, while Ireland finalized a plain packaging bill earlier on Wednesday.
One analyst told CNBC that despite complaints from the likes of British American Tobacco (BAT), there was little prospect of a big decline in sales for major tobacco companies.
"Regulatory headwinds have been massive for a while now…It's not ideal for the industry, but demand is not going to go anywhere because of it," Brewin Dolphin equity analyst Rob Scott Moncrieff told CNBC on Wednesday.
"It's generally not going to be that big an issue, they've dealt with it before," he added.
Moncrieff said the U.K.'s move would likely steer consumers away from more expensive tobacco products, but that legislation was unlikely to have a big impact on the share prices of big tobacco companies.
"If we going to see any negative reaction, we would have already seen it. I think that these guys have shrugged it off," he said, adding that there was little share price response in January when the U.K. government originally pledged to push the bill through ahead of May's general election.
Read MoreE-cigarettes could significantly cut tobacco use: Study
FTSE 100-listed tobacco companies have performed well this year, with BAT shares gaining more than 3 percent and shares of Imperial Tobacco gaining closer to 9 percent.
Plain packaging would have less impact on tobacco companies than the U.K.'s indoor smoking ban, introduced in 2007, Moncrieff added.
"They shrugged that off, and at the time it was the big story, of how no one is going to want to go outside and smoke, and how it would hurt demand. But it didn't play out that way," he said.
"Consumers will adapt."
—With contribution from CNBC's Katy Barnato