Tobacco in Saudi Arabia
Euromonitor International's Tobacco in Saudi Arabia 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: Aug 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
Increase in tobacco consumption
The Saudi Arabian tobacco market saw continuous growth in volume and value terms across almost all categories over the review period, and in 2007. It continued to see positive growth in volume and value terms in 2007.
Booming economy increases consumption of premium tobacco products
The increase in disposable incomes allowed consumers to purchase premium tobacco products. The increase in pipe tobacco and shisha, as well as in premium cigarettes was a direct result of better economic conditions. In the last three years, the economic conditions in Saudi Arabia improved due to higher oil prices. This resulted in better economic conditions and also increased the disposable incomes of consumers, who were willing to spend more money.
Smoking ban introduced in public places
The issue of a smoking ban was under much discussion during the review period, after officials expressed greater concern for public health. After Saudi Arabia signed up to the FCTC in 2004, the Saudi government decided to impose a law banning smoking in a number of public places. This delighted not only health officials, who have long warned of the dangers of passive smoking, but also those members of the public who understand the dangers of second hand smoke, especially to young children.
Youngsters consider smoking to be fashionable
Statistics from national records at the Ministry of Health reveal that the number of smokers in Saudi Arabia has dramatically increased. In spite of various programmes aimed at educating the public about the harm associated with smoking cigarettes, the number of smokers in Saudi Arabia continued to grow, especially amongst young people. The records also show that a significant number of Saudi women smoke; 8% of the adult female population in 2007, but this is set to increase over the forecast period.
Tougher government regulations predicted in the future
Anti-smoking organisations in Saudi Arabia, as well as the Saudi government, appear to be moving towards more stringent legislative control over smoking, with higher penalties and a ban on public smoking. However, legislation is frequently ignored or only sporadically enforced in Saudi Arabia, and thus the impact of this legislation will be outweighed by the shift from contraband to retail sales. Some health concerns may arise about smoking, following on from religious condemnation on health grounds at the end of the review period.
Further growth in the tobacco market over the forecast period
Dynamic growth is expected for tobacco during the forecast period. Cigarettes, the biggest tobacco sector, is expected to see positive growth, with consumers trading up from contraband to retail purchases, from economy to mid-priced and premium brands and from single sticks purchased from street vendors to whole packs purchased from organised retail outlets.
Ban on local production allows opportunities for international manufacturers
Saudi Arabia has strictly banned the local production of tobacco, and will continue to ban it in the future. This ban results in the import of all tobacco products. Saudi Arabia is ranked as the world’s fourth largest importer of cigarettes, and will continue to rely on imports in order to meet its future demands. International manufacturers are able to sell in the Saudi market through their exclusive agents, who import the products and market them to various channels in the country.
Table of contents
TOBACCO IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Increase in tobacco consumption
Booming economy increases consumption of premium tobacco products
Smoking ban introduced in public places
Youngsters consider smoking to be fashionable
Tougher government regulations predicted in the future
Further growth in the tobacco market over the forecast period
Ban on local production allows opportunities for international manufacturers
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2002-2007
Table 2 Number of Smokers by Gender 2002-2007
Death by Cause
Legislation
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies
Table 4 Average Cigarette Pack Price Breakdown : Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2002-2007
Table 8 Sales of Tobacco by Sector: Value 2002-2007
Table 9 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 10 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 11 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 12 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 13 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SAUDI ARABIA
AL-BABTAIN GROUP - TOBACCO - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Al-Babtain Group: Key Facts
Summary 3 Al-Babtain Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
BAHRAWI TRADING CO - TOBACCO - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Bahrawi Trading Company: Key Facts
Summary 5 Bahrawi Trading Company: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
BINZAGR CO - TOBACCO - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Binzagr Company: Key Facts
Summary 7 Binzagr Company: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
YOUSUF MA NAGHI & SONS GROUP - TOBACCO - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Yousuf MA Naghi & Sons Group: Key Facts
Summary 9 Yousuf MA Naghi & Sons Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 10 Yousuf MA Naghi & Sons Group: Competitive Position 2007
CIGARETTES IN SAUDI ARABIA
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 11 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
New Product Developments
Summary 12 Cigarettes: New Product Launches
PROSPECTS
SECTOR DATA
Table 16 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 17 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007
Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007
Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007
Table 23 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 25 Sales of Cigarettes by Length 2002-2007
Table 26 Sales of Cigarettes by Regular/Slim 2006-2007
Table 27 Sales of Cigarettes by Pack Size 2002-2007
Table 28 Sales of Cigarettes by Pack Type 2002-2007
Table 29 Cigarettes Company Shares 2003-2007
Table 30 Cigarettes Brand Shares 2004-2007
Table 31 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
Table 36 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 40 Forecast Sales of Cigarettes by Length 2007-2012
Table 41 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 42 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 43 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Sales of Cigars by Subsector: Volume 2002-2007
Table 45 Sales of Cigars by Subsector: Value 2002-2007
Table 46 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 47 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 48 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 49 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 50 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 51 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 52 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 53 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 54 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 55 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 56 Company Shares of Pipe Tobacco 2003-2007
Table 57 Brand Shares of Pipe Tobacco 2004-2007
Table 58 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 59 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 60 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 61 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012