Tobacco in the United Arab Emirates
Euromonitor International's Tobacco in the United Arab Emirates 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.
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Tables: 60 | Publication date: Jul 2007
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- Get insight into trends in market performance
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Executive summary
Further Decline in a Poorly Performing Market
The tobacco industry saw a continuous decline in volume and value across almost all sectors in 2005. The declining performance in 2005 indicated that tobacco companies were struggling to cope with new government legislation and the increasing growth of contraband over the review period. The climate had the least damaging effect on pipe or so-called shisha tobacco, which managed to retain some growth during the review period in spite of the difficult environment. Pipe tobacco reached its peak in 2003 at 273 tonnes before becoming drawn into the down-turning climate that characterises the tobacco market. In 2005, following the introduction of the smoking ban in several public places, pipe tobacco experienced a further decline compared with 2004.
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. Since the UAE’s membership of the FCTC in 2004, the government decided to impose a law banning smoking in several 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 by young children. The ban came as an addition to previous smoking bans in government offices and other institutions, and this has helped to boost the UAE’s international image as a health-conscious country.
New Tax Law Framework under Discussion
Tobacco tax is still very much under discussion among the Gulf Co-operation Council (GCC) states where some members are pushing for an increase to a level of 150% from 100%. However, 2005 brought the issue of taxation into a new light. The Federal Customs Authority is closely studying the practical aspects of implementing VAT in the country in light of government free trade negotiations which are underway with several countries including China, the EU, the US and Australia. Additionally, the tobacco industry has been pressing GCC members to lower their duty, stressing that their fiscal revenue from tobacco duties will soon begin to fall because of increased smuggling. This move, if carried out, could result in reducing customs taxes on tobacco products and ultimately their retail prices. This is thought to be potentially helpful in combating the problem of contraband and in increasing sales of the poorly performing tobacco market.
Great Threat Posed by Contraband
In 2005, the UAE government lost more than AED100 million in revenue because of tobacco smuggling. This continues to pose a great threat to the tobacco industry, and accounted for a significant proportion of total cigarettes volume in 2005. Tobacco companies blame poor government controls for the situation, which is not helped by the UAE’s geographic position since the region itself has become almost a dumping ground for cheaper goods.
Expansion of La Casa del Habano
The Baqer Mohebi Establishment (BME) dominates the cigars sector through its exclusive rights to distribute all Cuban cigars in the UAE. 2005 saw the expansion of its exclusive La Casa del Habano franchise with the opening of a new outlet. This expansion has made BME the single largest independent franchisee of Habanos in the world, due to its efforts to create and nurture demand for its exclusive products which are in great demand among consumers. Despite new brands gaining share within cigars, Cuban brands still remain synonymous with high quality among UAE consumers, accounting for vast majority of volume share in 2005.
Table of contents
TOBACCO IN THE UNITED ARAB EMIRATES : MARKET INSIGHT
EXECUTIVE SUMMARY
Further Decline in a Poorly Performing Market
Smoking Ban Introduced in Public Places
New Tax Law Framework under Discussion
Great Threat Posed by Contraband
Expansion of La Casa del Habano
KEY TRENDS AND IMPACT ASSESSMENT
Smoking Population
Death by Cause
Legislation
Legislation
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies
Contraband (Cigarettes)
Production/Imports/Exports
Table 2 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
Cigarettes: Price Bands
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Further Decline in a Poorly Performing Market
Smoking Ban Enforced
New Tax Law Framework under Discussion
MARKET INDICATORS
Table 3 Number of Smokers by Gender 2000-2005
Table 4 Contraband Cigarettes Penetration Estimate 2000-2005
MARKET DATA
Table 5 Retail Sales of Tobacco by Sector: Value 2000-2005
Table 6 Retail Sales of Tobacco by Sector: Volume 2000-2005
Table 7 Retail Sales of Tobacco by Sector: % Value Growth 2000-2005
Table 8 Retail Sales of Tobacco by Sector: % Volume Growth 2000-2005
Table 9 Retail Sales of Cigarettes by Distribution Format: % Analysis 2000/2005
Table 10 Forecast Retail Sales of Tobacco by Sector: Volume 2005-2010
Table 11 Forecast Retail Sales of Tobacco by Sector: Value 2005-2010
Table 12 Forecast Retail Sales of Tobacco by Sector: % Volume Growth 2005-2010
Table 13 Forecast Retail Sales of Tobacco by Sector: % Value Growth 2005-2010
CIGARETTES
Headlines
Trends
Competitive Landscape
Prospects
SECTOR DATA
Table 14 Retail Sales of Cigarettes by Tar Level: Volume 2000-2005
Table 15 Retail Sales of Cigarettes by Tar Level: Value 2000-2005
Table 16 Retail Sales of Cigarettes by Tar Level: % Volume Growth 2000-2005
Table 17 Retail Sales of Cigarettes by Tar Level: % Value Growth 2000-2005
Table 18 Cigarettes Company Shares 2001-2005
Table 19 Cigarettes Brand Shares 2002-2005
Table 20 Forecast Retail Sales of Cigarettes by Tar Level: Volume 2005-2010
Table 21 Forecast Retail Sales of Cigarettes by Tar Level: Value 2005-2010
Table 22 Forecast Retail Sales of Cigarettes by Tar Level: % Volume Growth 2005-2010
Table 23 Forecast Retail Sales of Cigarettes by Tar Level: % Value Growth 2005-2010
Table 24 Retail Sales of Cigarettes by Price Band: %Volume Breakdown 2000-2005
Table 25 Forecast Retail Sales of Cigarettes by Price Band: %Volume Breakdown 2005-2010
Table 26 Retail Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2000-2005
Table 27 Forecast Retail Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2005-2010
Table 28 Retail Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2000-2005
Table 29 Forecast Retail Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2005-2010
Table 30 Retail Sales of Cigarettes by Filter Vs Non-filter 2000-2005
Table 31 Retail Sales of Filter Cigarettes by Carbon Vs Non-carbon 2000-2005
Table 32 Retail Sales of Cigarettes by Length 2000-2005
Table 33 Retail Sales of Cigarettes by Pack Size 2000-2005
Table 34 Retail Sales of Cigarettes by Pack Ttype 2000-2005
CIGARS
Headlines
Trends
Competitive Landscape
Prospects
SECTOR DATA
Table 35 Retail Sales of Cigars by Subsector: Value 2000-2005
Table 36 Retail Sales of Cigars by Subsector: Volume 2000-2005
Table 37 Retail Sales of Cigars by Subsector: % Value Growth 2000-2005
Table 38 Retail Sales of Cigars by Subsector: % Volume Growth 2000-2005
Table 39 Retail Company Shares of Cigars 2001-2005
Table 40 Retail Brand Shares of Cigars 2002-2005
Table 41 Forecast Retail Sales of Cigars by Subsector: Value 2005-2010
Table 42 Forecast Retail Sales of Cigars by Subsector: Volume 2005-2010
Table 43 Forecast Retail Sales of Cigars by Subsector: % Value Growth 2005-2010
Table 44 Forecast Retail Sales of Cigars by Subsector: % Volume Growth 2005-2010
SMOKING TOBACCO
Headlines
Trends
Competitive Landscape
Prospects
SECTOR DATA
Table 45 Retail Sales of Smoking Tobacco by Subsector: Value 2000-2005
Table 46 Retail Sales of Smoking Tobacco by Subsector: Volume 2000-2005
Table 47 Retail Sales of Smoking Tobacco by Subsector: % Value Growth 2000-2005
Table 48 Retail Sales of Smoking Tobacco by Subsector: % Volume Growth 2000-2005
Table 49 Retail Company Shares of RYO Tobacco 2001-2005
Table 50 Retail Brand Shares of RYO Tobacco 2002-2005
Table 51 Retail Company Shares of Pipe Tobacco 2001-2005
Table 52 Retail Brand Shares of Pipe Tobacco 2002-2005
Table 53 Forecast Retail Sales of Smoking Tobacco by Subsector: Value 2005-2010
Table 54 Forecast Retail Sales of Smoking Tobacco by Subsector: Volume 2005-2010
Table 55 Forecast Retail Sales of Smoking Tobacco by Subsector: % Value Growth 2005-2010
Table 56 Forecast Retail Sales of Smoking Tobacco by Subsector: % Volume Growth 2005-2010
BAQER MOHEBI EST (BME)
Strategic Direction
Key Facts
Summary 1 Baqer Mohebi Est: Key Facts
Company Background
Competitive Positioning
NATIONAL TRADING & DEVELOPMENT EST (NTDE)
Strategic Direction
Key Facts
Summary 2 National Trading & Development Est: Key Facts
Summary 3 National Trading & Development Est: Operational Indicators
Company Background
Competitive Positioning
PHILIP MORRIS INTERNATIONAL INC
Strategic Direction
Key Facts
Summary 4 Philip Morris International Inc: Key Facts
Company Background
Competitive Positioning
DEFINITIONS