Despite COVID-19, there was no major impact on cigarettes, with volume growth up a few percentage points, in line with growth over the review period. Current value growth was higher as increasing taxes reflected in higher retail prices.
The Algerian cigarettes market is concentrated and controlled by three main players: Emirati-owned STAEM, British American Tobacco Algeria and United Tobacco Company, accounting for a combined volume share of over 90%. The shift among consumers from low-quality economy to increasingly price-competitive mid-price products was a factor contributing to state-owned Groupe MADAR’s share decline over the review period.
There were several product launches in 2020, as players reacted to consumers’ increased price sensitivity, due to the economic fallout of COVID-19. For instance, Phillip Morris launched Marlboro Select (DZD250), ITG launched Davidoff (DZD259), JTI launched LED (DZD170) and lastly, British American Tobacco launched Lucky Strike full & light and also Click (capsules with 4 different flavours in the same package), and also intends to launch a new Dunhill brand.
Cigarette sales are expected to continue to rise over the coming years as a result of many factors, partly due to the impact of multiple excise duty increases on prices. Anti-smoking campaigns and strategies implemented by the Algerian Government, coupled with the fact that smokers are increasingly switching to vapour products (still a very small niche), are expected to suppress cigarettes’ growth over the coming years.
High-tar cigarettes are set to continue dominating volume sales as they are the most economic and popular types of cigarettes in the country. The majority of regular cigarette smokers in Algeria are men rather than women.
An important point to take into consideration is the relatively low share of illicit trade in Algeria. Although generally smuggling and the black/grey market are problems in Algeria, locally consumed cigarettes are not that much affected due to the affordability of legitimate cigarettes and because of the strong local production of cigarettes in Algeria.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Algeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Cigarettes research and analysis database.
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