Tobacco
Tobacco

Tobacco in Saudi Arabia

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
Cost: 
GBP1190.00

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  • Get insight into trends in market performance
  • Pinpoint growth sectors and identify factors driving change
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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

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