Tobacco in Egypt
Euromonitor International's Tobacco in Egypt market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 73 | Publication date: Jul 2009
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Executive summary
Tobacco Market Continues to Rise
While worldwide attempts are being made to curb the growth of tobacco sales for health reasons, this trend has had less impact in Egypt, due to a number of factors. Cigarettes and pipe tobacco remain two popular products in the country and have become embedded in Egyptian culture. Legislative measures to curb the usage of tobacco have been ineffective, failing to suppress demand. Women have also been gaining independence in the country and smoking has become more accepted amongst them. Therefore, sheesha and cigarettes have acquired new consumers, further pushing up tobacco sales.
Legislative Changes Unlikely to Curb Consumption
A new anti-smoking bill was passed in Egypt in June 2007 as part of an effort to reduce the number of smokers in the country. The new legislation extended an existing ban on smoking in public to cover more enclosed spaces such as health and educational institutions, youth centres, legislative associations and all governmental buildings and clubs. A ban on smoking by minors was also passed. However, it is important to note that these legislative changes are not strongly enforced in the country, with there being many ways for people to bypass them. Most newsagent-tobacconists/kiosks sell substantial amounts of tobacco products and do not require identification from customers any more than they did before the smoking ban for minors was passed.
Eastern Company Remains Government Controlled
Eastern Company SAE holds a monopoly in the Egyptian tobacco market, with 66% of the company owned by the government. This remains a contradiction in the market as the government is the body passing laws on the banning of smoking for minors and banning advertising for tobacco products. However, the government is also trying to maximise profits from tobacco as it represents an important source of revenue. Eastern Company was partially privatised in 2007, with the Minister of Investment, Mahmoud Mohieeldin, stating that he would like to see it fully privatised ‘soon’.
Increasing Relocation to the Suburbs Causes Boost in Sales
Over the review period many Egyptians of middle- to higher-income standing have been relocating from Cairo’s city centre to suburban areas. Developments such as 6th of October City, Kattemeya Heights, 5th District, Rehab and many others have been building communities, allowing people to relocate and live there without having to return to the city centre. Cairo has become increasingly congested, causing people to tire of city life and seek fresh air as pollution increases. Therefore, outlets selling tobacco products have begun to relocate their shops or open second shops in these areas. Grocery retailers, newsagent-tobacconists/kiosks and mainly sheesha cafés, have increased in number dramatically in these areas. Therefore, cigarettes and smoking tobacco products are now available in a greater number of outlets throughout Egypt, further boosting sales in the country.
Growth Expected to Continue
With Egypt’s smoking population steadily increasing, cigarettes and smoking tobacco sales will continue to grow over the forecast period. Both sexes and all income segments of the population are now smoking, making this an even more widely accepted habit. No serious measures have been taken to curb the growth of the smoking population or warn people about the health risks associated with smoking. The only formal warning that is able to reach the entire population is the pictures printed on the packs of cigarettes showing a sick child with a mask. However, educational efforts to publicise the risks associated with smoking have yet to be introduced by the government.
Table of contents
TOBACCO IN EGYPT : MARKET INSIGHT
EXECUTIVE SUMMARY
Tobacco Market Continues to Rise
Legislative Changes Unlikely to Curb Consumption
Eastern Company Remains Government Controlled
Increasing Relocation to the Suburbs Causes Boost in Sales
Growth Expected to Continue
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/ FCTC ratification
Legislation: Egyptian law
Tar levels
Health warnings
Duty paid packet marks
Advertising and sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies 2002-2007
PRODUCTION/IMPORTS/EXPORTS
Table 4 Trade Statistics – Cigarettes 2003-2007
MARKET INDICATORS
Table 5 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 6 Sales of Tobacco by Sector: Volume 2003-2008
Table 7 Sales of Tobacco by Sector: Value 2003-2008
Table 8 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 9 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 10 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 11 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - EGYPT
EASTERN COMPANY SAE - TOBACCO - EGYPT
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Eastern Company SAE: Key Facts
Summary 3 Eastern Company SAE: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 4 Eastern Company SAE: Competitive Position 2008
CIGARETTES IN EGYPT
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 5 New Product Launches
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 6 Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Length
Cigarettes: Slims/superslims versus regular
Cigarettes: Pack size
Cigarettes: Pack type
SECTOR DATA
Table 14 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 15 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 16 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 17 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 18 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 19 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 20 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 22 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 23 Sales of Cigarettes by Length 2003-2008
Table 24 Sales of Cigarettes by Regular/Slim 2006-2008
Table 25 Sales of Cigarettes by Pack Size 2003-2008
Table 26 Sales of Cigarettes by Pack Type 2003-2008
Table 27 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 28 Cigarettes Company Shares 2004-2008
Table 29 Cigarettes Brand Shares 2005-2008
Table 30 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 31 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 36 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 40 Forecast Sales of Cigarettes by Length 2008-2013
Table 41 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 42 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN EGYPT
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 44 Sales of Cigars by Subsector: Volume 2003-2008
Table 45 Sales of Cigars by Subsector: Value 2003-2008
Table 46 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 47 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 48 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 49 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 50 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 51 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 52 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 53 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 54 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO IN EGYPT
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 55 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 56 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 57 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 58 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 59 Company Shares of RYO Tobacco 2004-2008
Table 60 Brand Shares of RYO Tobacco 2005-2008
Table 61 Company Shares of Pipe Tobacco 2004-2008
Table 62 Brand Shares of Pipe Tobacco 2005-2008
Table 63 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 64 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 65 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 66 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 67 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013
SMOKELESS TOBACCO IN EGYPT
HEADLINES