2021 saw the cigarettes market bounce back from the challenges it faced during the COVID-19 crisis. In terms of the supply chain, the market maintained a stable supply of cigarettes throughout 2021, unlike during the review period when problems with production and distribution led to shortages during many periods.
Eastern Co continued to witness healthy sales growth, with the company announcing it has hit record high revenues for its cigarettes division. Major strategic development at the company, along with the improvement of its production efficiency have led to a stronger supply chain and more availability in the market.
Since the introduction of heated tobacco in Egypt, many cigarette users, especially those amongst the higher-income consumer segment who mostly consume products by PMI and BAT, have switched to heated tobacco products. The market for heated tobacco recorded strong growth during 2021, affecting the dynamics for other tobacco categories in the year, including cigarettes.
Over the forecast period, the cigarettes market in Egypt is expected to witness changes in terms of packaging requirements. For example, starting mid-2022, prices will be printed on the cigarettes package as it gets produced.
There are currently three price segments for cigarettes in the Egyptian market: the lower segment, consumers that purchase cigarettes priced from EGP1 to EGP22; the middle segment, which includes consumers that purchase cigarettes with an average price of EGP22 to EGP35; and then the highest segment, which consumes cigarettes priced above EGP35. Over the forecast period, consumers in the highest segment are expected to consume fewer cigarettes since many will switch to heated tobacco devices, a trend that was already evident in 2021 with the launch of heated tobacco products in Egypt.
A challenge to retail sales of cigarettes will be increased demand for illicit cigarettes, with illicit trade volume sales set to comfortably outpace legal sales in the forecast period. An increasing number of new brands are being illegally traded and sold at extremely low prices, which is evidence that many smokers with low disposable incomes are continuing to search for more affordable options, especially given the financial fallout of COVID-19.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Egypt with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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Cigarettes
RETAIL SALES OF DUTY PAID CIGARETTES The definition of cigarettes for the purposes of this study is duty-paid, machine manufactured white-stick products. This does not exclude brands of cigarettes that do not use white paper but it is designed to exclude the volume of non-machine manufactured products such as bidis/beedis (India) and papirosy (Russia), and other smoking products made with tobacco but that either do not resemble cigarettes as recognised in the US or Europe, or those that are not machine manufactured. The exclusion of these products is intended to give a more accurate picture of the "true" market for cigarettes and cigars which has been distorted in official statistics and published reports because of the inclusion of hybrid products. NB Please note that due to its central importance and integration into the industry mainstream, Indonesia’s market data does include hand-rolled kreteks DUTY-FREE sales are excluded from retail sales, as are herbal cigarettes. ILLICIT TRADE CIGARETTES Not included in retail sales, but split out separately in volume terms only. Defined as non-duty paid cigarettes (includes smuggled & counterfeit/fake products combined). Legitimate cross-border sales are considered duty-paid. Sales arising from a foreign national purchasing cheaper cigarettes in bulk in a neighbouring country for personal use and exported back are attributed to the country where the purchase is made (e.g. bulk cigarette sales by British nationals in France are attributed to France).
See All of Our DefinitionsThis report originates from Passport, our Cigarettes research and analysis database.
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