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: 76 | Publication date: Aug 2009
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- 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
Executive summary
Overall tobacco market benefits from the economic boom
The Saudi economy has seen tremendous growth over the last six years and this continued in 2008. As a result, the Saudi Arabian tobacco industry also continued to grow in both volume and value terms across almost all sectors over the review period and continued to register positive volume and value growth in 2008. Due to growth in the population and rising consumer incomes, tobacco companies are increasingly benefiting from a rise in sales. Rising disposable income has increasingly pushed up sales of premium brands.
Smoking ban proves ineffective
Over the last few years the issue of a smoking ban has been widely discussed after officials expressed greater concern for public health. Following Saudi Arabia’s signing of the FCTC (Framework Convention on Tobacco Control) in 2004, the Saudi government decided to impose a law banning smoking in public places. Although the law is in place, it is not fully enforced by the authorities. Thus, sales of tobacco in the country remained unharmed by the new law.
Demand for premium tobacco increases significantly in 2008
The increase in disposable income in the country over the past few years, fuelled by a booming economy and already high per capita income, has translated into consumers purchasing more premium tobacco products. An increase in sales of pipe tobacco, used for shisha, was also observed. Although it is difficult to obtain a new licence for the importation of tobacco brands, existing agents are able to market new brands from leading manufacturers. Cigars and cigarillos also achieved growth in 2008 thanks to favourable economic conditions.
Total ban on local production provides opportunities for tobacco exporters
The fact that there is a total ban on the local production of tobacco products in Saudi Arabia continued to provide opportunities for multinational companies. Saudi Arabia is ranked fourth in the world in terms of cigarette imports, with companies such as Philip Morris and British American Tobacco leading in the country. International manufacturers continue to sell their products in Saudi Arabia through their exclusive agents which import the products and sell them through various channels.
Tobacco sales expected to grow healthily over the forecast period
Growth is expected to remain dynamic over the forecast period, with the market registering a stronger performance in constant value terms than that of the review period. Cigars is expected to see the strongest growth due to the fact that the sector is growing from a low base. Rising disposable incomes will drive more people to buy cigars and start trading up to premium brands in the future. In addition, as smoking prevalence in the country is set to rise, sales of tobacco products are expected to increase as well.
Table of contents
TOBACCO IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Overall tobacco market benefits from the economic boom
Smoking ban proves ineffective
Demand for premium tobacco increases significantly in 2008
Total ban on local production provides opportunities for tobacco exporters
Tobacco sales expected to grow healthily over the forecast period
MARKET BACKGROUND
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: Saudi Law and Gulf Co-operation Council Directives
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
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
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2003-2008
Table 8 Sales of Tobacco by Sector: Value 2003-2008
Table 9 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 10 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 11 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
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
COMPETITIVE POSITIONING
BINZAGR CO - TOBACCO - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Binzagr Co: Key Facts
Summary 5 Binzagr Co: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
YOUSUF MA NAGHI & SONS GROUP - TOBACCO - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Yousuf M A Naghi & Sons Group: Key Facts
Summary 7 Yousuf M A Naghi & Sons Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
CIGARETTES IN SAUDI ARABIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 8 Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Filter length
Cigarettes: Slims/superslims vs regular
Cigarettes: Pack size
Cigarettes: Pack type
SECTOR DATA
Table 15 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 16 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 23 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 24 Sales of Cigarettes by Length 2003-2008
Table 25 Sales of Cigarettes by Regular/Slim 2006-2008
Table 26 Sales of Cigarettes by Pack Size 2003-2008
Table 27 Sales of Cigarettes by Pack Type 2003-2008
Table 28 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 29 Cigarettes Company Shares 2004-2008
Table 30 Cigarettes Brand Shares 2005-2008
Table 31 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 41 Forecast Sales of Cigarettes by Length 2008-2013
Table 42 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN SAUDI ARABIA
HEADLINES
TRENDS
Distribution
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 45 Sales of Cigars by Subsector: Volume 2003-2008
Table 46 Sales of Cigars by Subsector: Value 2003-2008
Table 47 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 48 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 49 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 50 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 51 Company Shares of Cigarillos 2004-2008
Table 52 Brand Shares of Cigarillos 2005-2008
Table 53 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 54 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 55 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 57 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO IN SAUDI ARABIA
HEADLINES
TRENDS
Distribution
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 58 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 59 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 60 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 61 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 62 Company Shares of Pipe Tobacco 2004-2008
Table 63 Brand Shares of Pipe Tobacco 2005-2008
Table 64 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 65 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 66 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 67 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013