print

Country Report

Saudi Arabia Flag Tobacco in Saudi Arabia

Price: US$2,100

About this Report

EXECUTIVE SUMMARY

Growth in tobacco in 2014 driven by rising sales of cigarillos and pipe tobacco

Saudi Arabia’s tobacco market is growing strongly and performing well. The highest growth category in 2014 was cigars, with growth driven by cigarillos, followed by pipe tobacco, primarily due to shisha, the smoking of which is deeply embedded in Arab culture. Despite government efforts and various anti-smoking campaigns promoting health awareness and reducing the number of smokers, no significant changes were seen in smoking prevalence in Saudi Arabia in 2014. However, increases in taxation over the review period resulted in unit price hikes and, consequently, higher illicit trade volumes as well as price band shifts among middle-income consumers.

High taxation and unit price hikes fuel growth in the illicit trade

Over the review period, the government increased the taxation on tobacco with the aim of reducing the number of smokers in Saudi Arabia. High taxes were imposed, followed by unit price increases, although this had no significant impact in terms of reducing the number of smokers, as planned. Instead, these changes encouraged counterfeiting and smuggling. When consumers who are loyal towards specific premium cigarette brands find it difficult to afford them because of high unit prices, they often opt for the illicit trade. Illicit trade volumes recorded positive growth in 2014, with further expected over the forecast period.

Multinational companies continue to dominate sales of tobacco in Saudi Arabia

Since the production of tobacco is banned in Saudi Arabia, all tobacco products consumed in the country are imported. Philip Morris maintains its leading position in cigarettes, while Habanos SA dominates in cigars. Due to the restrictions on tobacco advertising, companies focus mainly on in-store promotions and point-of-sale retail displays.

Convenience stores becomes the leading distribution channel for cigarettes

Most hypermarkets and supermarkets in Saudi Arabia have taken a conscious decision to adopt a no-tobacco policy. They have adopted strict policies against selling tobacco, having removed all tobacco counters from their stores. Volume sales have thus been transferred from hypermarket and supermarkets to convenience stores and independent small grocers. Each of these channels recorded positive growth in its value share over the review period, with convenience stores becoming the leading distribution channel for cigarettes in Saudi Arabia, followed by independent small grocers. As for the cigars, tobacco specialists retained its leading position in the retail distribution across the Kingdom in 2014.

Despite all the restrictions and challenges, tobacco is expected to continue growing

Cigarettes, cigars and pipe tobacco are all expected to record positive growth over the forecast period in spite of all of the government efforts to reduce smoking such as imposing high taxes and duties on tobacco, banning smoking in public and enacting increasingly strict tobacco control legislation as well as funding and organising various anti-smoking campaigns in the hope of creating higher levels of health awareness. High taxation and rising unit prices are not expected to have a significant negative impact on the smoking prevalence in the Kingdom over the forecast period; instead, it is expected that they will continue to promote growth in the illicit trade whilst encouraging smokers of mid-priced cigarette brands to shift to economy brands, which are more affordable.

Samples (FAQs about samples):


doc_pdf.pngSample Tobacco Market Research Report

doc_excel_table.pngSample Tobacco Data

Delivery: Files are delivered directly into your account within a few minutes of purchase.

Overview


Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Saudi Arabia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Tobacco industry in Saudi Arabia, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Saudi Arabia for free:

The Tobacco in Saudi Arabia 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 Saudi Arabia?
  • What are the major brands in Saudi Arabia?
  • Which sector of the tobacco products market is the largest by value sales in Saudi Arabia?
  • Which sector of the tobacco products market has been growing the fastest, by volume and value, in Saudi Arabia?
  • Which sector is the most heavily taxed in Saudi Arabia?
  • Which companies dominate in the total tobacco market in Saudi Arabia in terms of market share?
  • What is the distribution channel split for the tobacco products market in Saudi Arabia?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Tobacco market research database.

Table of Contents

Tobacco in Saudi Arabia - Industry Overview

EXECUTIVE SUMMARY

Growth in tobacco in 2014 driven by rising sales of cigarillos and pipe tobacco

High taxation and unit price hikes fuel growth in the illicit trade

Multinational companies continue to dominate sales of tobacco in Saudi Arabia

Convenience stores becomes the leading distribution channel for cigarettes

Despite all the restrictions and challenges, tobacco is expected to continue growing

OPERATING ENVIRONMENT

Legislation

  • Summary 1 Legislation Summary at a Glance

Gulf Co-Operation Council directives

Minimum legal smoking age

Smoking prevalence

  • Table 1 Smoking Prevalence in Adult Population 2010-2014
  • Table 2 Number of Adult Smokers by Gender 2010-2014

Tar levels

Health warnings

Advertising and sponsorship

Point-of-sale display bans

Smoking in public places

Low ignition propensity (LIP) cigarette regulation

Flavoured tobacco product ban

Plain packaging

‘Reduced harm’

Electronic cigarettes

Litigation

Death by cause

  • Table 3 Death by Cause 2010-2014

TAXATION AND PRICING

Duty paid packet marks

Taxation rates

  • Table 4 Taxation and Duty Levies 2009-2014

Average cigarette pack price breakdown

  • Table 5 Average Cigarette Pack Price Breakdown: Brand Examples (Pack of 20)

PRODUCTION/IMPORTS/EXPORTS

Illicit trade in cigarettes

MARKET INDICATORS

  • Table 6 Illicit Trade Estimate of Cigarettes: Volume 2009-2014

MARKET DATA

  • Table 7 Sales of Tobacco by Category: Volume 2009-2014
  • Table 8 Sales of Tobacco by Category: Value 2009-2014
  • Table 9 Sales of Tobacco by Category: % Volume Growth 2009-2014
  • Table 10 Sales of Tobacco by Category: % Value Growth 2009-2014
  • Table 11 Forecast Sales of Tobacco by Category: Volume 2014-2019
  • Table 12 Forecast Sales of Tobacco by Category: Value 2014-2019
  • Table 13 Forecast Sales of Tobacco by Category: % Volume Growth 2014-2019
  • Table 14 Forecast Sales of Tobacco by Category: % Value Growth 2014-2019

DEFINITIONS

SOURCES

  • Summary 2 Research Sources

Tobacco in Saudi Arabia - Company Profiles

British American Tobacco Plc in Tobacco (Saudi Arabia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 3 British American Tobacco Plc Key Facts
  • Summary 4 British American Tobacco Plc: Operational Indicators

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 5 British American Tobacco Plc: Competitive Position 2014

Imperial Tobacco Group Plc in Tobacco (Saudi Arabia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 6 Imperial Tobacco Group Plc: Key Facts

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 7 Imperial Tobacco Group Plc: Competitive Position 2014

Philip Morris International Inc in Tobacco (Saudi Arabia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 8 Philip Morris International Inc: Key Facts
  • Summary 9 Philip Morris International Inc: Operational Indicators

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 10 Philip Morris International Inc: Competitive Position 2014

Cigarettes in Saudi Arabia - Category Analysis

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

  • Summary 11 Cigarettes: New Product Launches

DISTRIBUTION

PROSPECTS

CATEGORY BACKGROUND

Cigarettes: Price bands

  • Summary 12 Cigarette Price Band Definitions

Cigarettes: Tobacco blend

Cigarettes: Standard/menthol/capsule

Flavour threads

Cigarettes: Filtered/unfiltered

Cigarettes: Carbon filter/non-carbon filter

Cigarettes: Cigarette length

Cigarettes: Regular vs. slim vs. super slim vs. micro slim

Cigarettes: Pack size

Cigarettes: Pack type

CATEGORY DATA

  • Table 15 Sales of Cigarettes by Tar Level: Volume 2009-2014
  • Table 16 Sales of Cigarettes by Tar Level: Value 2009-2014
  • Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2009-2014
  • Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2009-2014
  • Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2009-2014
  • Table 20 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2009-2014
  • Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2009-2014
  • Table 22 Sales of Cigarettes by Filtered vs Non-filtered: % Volume 2009-2014
  • Table 23 Sales of Filtered Cigarettes by Carbon vs Non-carbon: % Volume 2009-2014
  • Table 24 Sales of Cigarettes by Length: % Volume 2009-2014
  • Table 25 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2009-2014
  • Table 26 Sales of Cigarettes by Pack Size: % Volume 2009-2014
  • Table 27 Sales of Cigarettes by Pack Type: % Volume 2009-2014
  • Table 28 NBO Company Shares of Cigarettes: % Volume 2010-2014
  • Table 29 LBN Brand Shares of Cigarettes: % Volume 2011-2014
  • Table 30 Sales of Cigarettes by Distribution Format: % Volume 2009-2014
  • Table 31 Production, Imports and Exports of Cigarettes: Total Volume 2009-2014
  • Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2014-2019
  • Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2014-2019
  • Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2014-2019
  • Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2014-2019
  • Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2014-2019
  • Table 37 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2014-2019
  • Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2014-2019
  • Table 39 Forecast Sales of Cigarettes by Filtered vs Non-filtered: % Volume 2014-2019
  • Table 40 Forecast Sales of Filtered Cigarettes by Carbon vs Non-carbon: % Volume 2014-2019
  • Table 41 Forecast Sales of Cigarettes by Length: % Volume 2014-2019
  • Table 42 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2014-2019
  • Table 43 Forecast Sales of Cigarettes by Pack Size: % Volume 2014-2019
  • Table 44 Forecast Sales of Cigarettes by Pack Type: % Volume 2014-2019

Cigars in Saudi Arabia - Category Analysis

HEADLINES

TRENDS

HAND-MADE VS MACHINE MANUFACTURED SPLITS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

DISTRIBUTION

PROSPECTS

CATEGORY DATA

  • Table 45 Sales of Cigars by Category: Volume 2009-2014
  • Table 46 Sales of Cigars by Category: Value 2009-2014
  • Table 47 Sales of Cigars by Category: % Volume Growth 2009-2014
  • Table 48 Sales of Cigars by Category: % Value Growth 2009-2014
  • Table 49 Sales of Cigars by Handmade vs Machine-manufactured: % Volume Breakdown 2009-2014
  • Table 50 Sales of Cigars by Handmade vs Machine-manufactured: % Value Breakdown 2009-2014
  • Table 51 NBO Company Shares of Cigars Excluding Cigarillos: % Volume 2010-2014
  • Table 52 LBN Brand Shares of Cigars Excluding Cigarillos: % Volume 2011-2014
  • Table 53 NBO Company Shares of Cigarillos: % Volume 2010-2014
  • Table 54 LBN Brand Shares of Cigarillos: % Volume 2011-2014
  • Table 55 Distribution of Cigars by Format: % Volume 2009-2014
  • Table 56 Forecast Sales of Cigars by Category: Volume 2014-2019
  • Table 57 Forecast Sales of Cigars by Category: Value 2014-2019
  • Table 58 Forecast Sales of Cigars by Category: % Volume Growth 2014-2019
  • Table 59 Forecast Sales of Cigars by Category: % Value Growth 2014-2019

Smoking Tobacco in Saudi Arabia - Category Analysis

HEADLINES

TRENDS

The role and effect of cannabis/marijuana

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

CATEGORY DATA

  • Table 60 Sales of Smoking Tobacco by Category: Volume 2009-2014
  • Table 61 Sales of Smoking Tobacco by Category: Value 2009-2014
  • Table 62 Sales of Smoking Tobacco by Category: % Volume Growth 2009-2014
  • Table 63 Sales of Smoking Tobacco by Category: % Value Growth 2009-2014
  • Table 64 NBO Company Shares of Pipe Tobacco: % Volume 2010-2014
  • Table 65 LBN Brand Shares of Pipe Tobacco: % Volume 2011-2014
  • Table 66 Distribution of Smoking Tobacco by Format: % Volume 2009-2014
  • Table 67 Forecast Sales of Smoking Tobacco by Category: Volume 2014-2019
  • Table 68 Forecast Sales of Smoking Tobacco by Category: Value 2014-2019
  • Table 69 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2014-2019
  • Table 70 Forecast Sales of Smoking Tobacco by Category: % Value Growth 2014-2019

Vapour Devices in Saudi Arabia - Category Analysis

HEADLINES

LEGISLATION

TRENDS

DISTRIBUTION

NEW PRODUCT DEVELOPMENTS

PROSPECTS

  • Table 71 Number of Adult Vapers 2010-2014

Segmentation

This market research report includes the following:

  • Tobacco
    • Cigarettes
      • High Tar Cigarettes
      • Mid Tar Cigarettes
      • Low Tar Cigarettes
      • Ultra Low Tar Cigarettes
    • Cigars
      • Cigars Excluding Cigarillos
        • Large Cigars
        • Standard Cigars
        • Small Cigars
      • Cigarillos
    • Smoking Tobacco
      • RYO Tobacco
      • Pipe Tobacco
    • Smokeless Tobacco
      • Chewing Tobacco
        • Asian-Style Chewing Tobacco
        • US-Style Chewing Tobacco
        • Other Chewing Tobacco
      • Snuff
        • Moist Snuff
          • US-Style Moist Snuff ('Dip')
            • Loose US-Style Moist Snuff
            • Portion US-Style Moist Snuff
          • Swedish-Style Snus
            • Loose Swedish-Style Snus
            • Portion Swedish-Style Snus
          • Asian Style Creamy Snuff
        • Dry Snuff
        • Hard Snuff
    • Cigarettes Including RYO Stick Equivalent
      • RYO Cigarettes
    • Vapour Devices
      • Cig-a-likes
        • Disposable cig-a-likes
        • Rechargeable cig-a-likes (including nicotine cartridges)
      • Tank systems
        • Tank system charging and vapourising devices
        • E-liquids
      • Heat-not-burn devices

Statistics Included

For each category and subcategory you will receive the following data in Excel format:

From Passport

  • Market Sizes
  • Company Shares
  • Brand Shares
  • Distribution
  • Analysis by Type
  • Cigarettes by Blend
  • Cigarettes by Carbon Filter/Non-Carbon Filter
  • Cigarettes by Filtered/Unfiltered
  • Cigarettes by Length
  • Cigarettes by Pack Size
  • Cigarettes by Pack Type
  • Cigarettes by Price Band
  • Cigarettes by Slim/Superslim/Microslim/Regular
  • Cigarettes by Standard/Menthol/Capsule
  • Pricing
  • Products by Ingredient
  • Smoking population - number of adult smokers
  • Smoking prevalence - % of adult population
  • Taxation
  • Trade Statistics - Volume

Market size details:

  • Retail volume
  • Retail volume % growth
  • Retail volume per capita
  • Retail value retail selling price % growth
  • Retail value retail selling price local currency, USD, EUR, GBP, CHF, JPY
  • Retail value retail selling price per capita local currency, USD, EUR, GBP, CHF, JPY
  • Illicit trade volume
  • Illicit trade volume % growth
  • Illicit trade volume per capita
  • Retail volume (sticks)
  • Retail volume (sticks) % growth
  • Retail volume (sticks) per capita
  • Retail plus illicit trade
  • Retail plus illicit trade % growth
  • Retail plus illicit trade per capita

print

Recently Viewed Items more ›

    Want to find out more about this report?

    If you purchase a report that is updated in the next 60 days, we will send you the new edition of the report and the data extract FREE!
    Our site uses cookies to improve functionality. Continue if you are happy with this or learn how to manage cookies by clicking here