OK, this is done, but where it is done I have only seen it done for historical reasons, such as a particular client-server model that requires it, or for legacy reports where the segments are de facto fields in the layout.
The examples I have seen where for free form text entries (remarks, notes, contact log) in insurance/collections applications and the like where formatting on a printed report was important or there was a need to avoid any confusion in post post processing to dress the format where multiple platforms are involved. (\r\n vs \n and EBCDIC vertical tabs).
So not generally for space/performance/recovery purposes.
If the row is "mostly" this field, a alternative would be to create a row for each segment and add a low-range sequence number to the key.
In this way you would have only 1 row for short values and up to 8 for long. Consider your likely statistics.
Caveats :
Always be acutely aware of MySQL indexes dropping trailing spaces. Concatenating these should take this into account if used in an index.
This is not a recommendation, but "tags" sounds like a candidate for a single varchar field for full text indexing. If the data is so important that forensic recovery is a requirement, then normalising the model to store the tags in a separate table may be another way to go.