The government has begun a public consultation on tobacco-control measures through the Department of Health.
The government is also considering proposals to prohibit sales of cigarettes in packs of 10, which are more affordable for children, and limit access to vending machines.
Although smoking among young people has decreased from a decade ago, more than 200,000 Britons aged under 16 still take up the habit each year, according to the DoH.
Dawn Primarolo, public health minister, said: "If banning brightly coloured packets, removing cigarettes from display and removing the cheap option of a pack of 10 helps save lives, that is what we should do... But we want to hear everyone's views first.''
The government has claimed that tobacco-related diseases kill 87,000 Britons a year, equal to the population of Durham.
Furthermore, it estimates that annual spending by the National Health Service to treat smoking-linked illnesses runs as high as £1.7bn a year.