The Collaborative International Dictionary of English v.0.48:

cellophane \cellophane\ (s[e^]l"[-o]*f[=a]n`), n.
   a transparent paper-like product made of regenerated
   cellulose, produced in sheets and rolls, which is impervious
   to moisture and germs, and which is used to wrap candy,
   cigarettes, and a wide variety of other products for
   distribution and retail sale; as, a pack of cigarettes in a
   cellophane wrapper.
   [WordNet 1.5 +PJC]

WordNet (r) 3.0 (2006):

cellophane
    n 1: a transparent paperlike product that is impervious to
         moisture and used to wrap candy or cigarettes etc.