Tobacco registers positive retail volume growth during 2012
The positive growth recorded in tobacco in Morocco during 2012 was largely due to the increase in smoking prevalence in Morocco, which occurred despite the various strict anti-smoking measures enacted by the government. This contributed to the strong volume growth recorded in cigarettes, cigars and smoking tobacco. Moreover, tobacco taxes have increased steadily since 2011 and Moroccan smokers have become accustomed to the higher price of cigarettes.
The government adopts a new law on the suppression of minimum prices
The system of minimum prices applied on new cigarettes brands which are introduced into Morocco is soon to be suspended. This mechanism of price fixing is also considered a form of discrimination on the profits of Imperial Tobacco as new operators are not allowed to sell cigarettes packets under the average price of Dh27.53. The application of this law began in January 2013 and it has so far determined the rules of competition in the industry as the retail selling price of cigarettes is set to be controlled by producers and wholesale distributors. However, prices cannot be applied unless agreed to by the administration.
The Interior Consumption Tax (TIC) on manufactured tobacco increases by 5.5%
Since the increases in the taxation on tobacco levied in 2011 and 2012, Morocco’s tobacco industry was the subject of new tax rises during early 2013. This represents a mixture of an increase in a set level of interior consumption tax (TIC) and ad valorem tax calculated according to the price of the products being sold. All of this has led to the TIC on cigarettes reaching 53.6%. The leading companies in tobacco in Morocco now have no other choice but to pass this value added tax onto consumers.
Imperial Tobacco Maroc remains the clear leader in tobacco in Morocco
Imperial Tobacco Maroc continued to lead cigarettes in Morocco in 2012, despite losing volume share throughout the review period. The company offers some of the leading cigarette brands in Morocco such as Marquise, Fortuna and Marlboro. The company’s leading cigarettes brands combined accounted for more than 80% of total cigarettes volume sales in Morocco during 2012. Imperial Tobacco Maroc is considered a price setter in tobacco in Morocco and therefore other players in the industry tend to wait for the company to adjust its prices before reacting accordingly. Primarily, the categories of cigars and smoking tobacco are dominated by Imperial Tobacco.
Volume and value growth expected to accelerate over the forecast period
Tobacco in Morocco is expected to record strong growth over the forecast period despite the imposition of stricter legislation by the Moroccan government. The high proportion of the Moroccan population who are young people and the rising smoking prevalence in the country are set to combine with an increase in company activity in the category to generate higher growth. Cigars and smoking tobacco are expected to continue registering positive value and volume growth throughout the forecast period thanks to the fact that they are each rising from a relatively small base.
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Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Morocco with research from Euromonitor's team of in-country analysts.
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The Tobacco in Morocco market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Production, imports by origin, exports by destination
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Tobacco in Morocco?
- What are the major brands in Morocco?
- Which sector of the tobacco products market is the largest by value sales in Morocco?
- Which sector of the tobacco products market has been growing the fastest, by volume and value, in Morocco?
- Which sector is the most heavily taxed in Morocco?
- Which companies dominate in the total tobacco market in Morocco in terms of market share?
- What is the distribution channel split for the tobacco products market in Morocco?
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- Gain competitive intelligence about market leaders
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This industry report originates from Passport, our Tobacco market research database.