Executive Summary

Jul 2019
PROSPECTS
Demand for cigarettes continues with stable smoking prevalence and population growth

With only low growth in the unit price of cigarettes in 2018 due to increasing general tax across the price bands, the category continued to record stable retail volume growth. This was mainly supported by stable smoking prevalence in the country and a strong consumer base in lower-income groups who are accustomed to smoking regularly.

Economy band continues to gain share, yet demand for illicit trade intensifies

The high number of low-income smokers resulted in the dominant economy band of cigarettes continuing to gain retail volume share from the premium band, while there was also volume growth for mid-price cigarettes. Despite a marginally declining trend for premium cigarettes in 2018, more affluent smokers were indifferent to price increases and were unwilling to trade down to lower quality products, with some premium brands such as Marlboro recording positive retail volume growth.

Innovation in flavour to attract premium consumers

Within the different price bands, players offering premium brands attempt to attract consumers through innovation when developing new products, as high-income consumers appreciate new flavour options. In line with this trend was a notable increase in retail volume sales recorded by the niche of flavour capsules in 2018 as witnessed by the success of Marlboro Purple Mix, whereby consumers have the option of pressing a button, which releases a fruit flavour.

COMPETITIVE LANDSCAPE
Eastern Co strengthens dominance of cigarettes with its economy range appealing to low-income consumers

Eastern Co SAE retained its dominance of cigarettes in 2018, gaining further retail volume share due to its expansive brand portfolio, including its leading cigarette Cleopatra Golden King, which is also the most popular economy priced cigarette amongst low-income consumers. Since Eastern Co SAE is state-owned, it is the only supplier with a licence to manufacture cigarettes in the country.

Price rises and new launch for Philip Morris

Philip Morris International announced a number of changes in 2018, with the first being an increase in prices for some of its brands, due to increasing production and labour costs. This impacted brands Merit, Marlboro Gold and Marlboro Red, leading to declining sales for Merit.

Eastern Co continues to invest in production facilities due to increasing demand

In a plan to increase production to meet growing demand for cigarettes, the board of Eastern Co agreed to raise the company’s paid capital to EGP2.25 billion from EGP1.

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Cigarettes in Egypt

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Overview

Discover the latest market trends and uncover sources of future market growth for the Cigarettes industry in Egypt 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 Cigarettes industry in Egypt, our research will save you time and money while empowering you to make informed, profitable decisions.

The Cigarettes in Egypt 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, and exports of finished cigarettes
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Cigarettes in Egypt?
  • What are the major brands in Egypt?
  • What is the legislative environment like in Egypt?
  • What are the rates of cigarette taxation in Egypt?
  • Do premium, mid-price or economy cigarettes dominate in Egypt?
  • What is the rate of illicit trade in Egypt?
  • How many smokers are there in the country?

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.

Cigarettes in Egypt - Category analysis

HEADLINES

PROSPECTS

Demand for cigarettes continues with stable smoking prevalence and population growth
Economy band continues to gain share, yet demand for illicit trade intensifies
Innovation in flavour to attract premium consumers

COMPETITIVE LANDSCAPE

Eastern Co strengthens dominance of cigarettes with its economy range appealing to low-income consumers
Price rises and new launch for Philip Morris
Eastern Co continues to invest in production facilities due to increasing demand

TAXATION AND PRICING

Taxation rates
Summary 1 Taxation and Duty Levies 2013-2019
Average cigarette pack price breakdown
Summary 2 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 1 Sales of Cigarettes: Volume 2013-2018
Table 2 Sales of Cigarettes by Category: Value 2013-2018
Table 3 Sales of Cigarettes: % Volume Growth 2013-2018
Table 4 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 5 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 7 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 8 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 9 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 10 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 11 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 12 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 13 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 14 Forecast Sales of Cigarettes: Volume 2018-2023
Table 15 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 16 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 17 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 18 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 19 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 20 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 21 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 22 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023

Tobacco in Egypt - Industry Overview

EXECUTIVE SUMMARY

Despite rising unit prices, largest categories of cigarettes and pipe tobacco record positive retail volume growth
Tax hikes and rising production costs heavily influence price increases
Dominance of local player Eastern Co due to extensive brand range
Convenience and economy options dictate preference in distribution
Positive forecast for tobacco supported by ingrained habits of local consumers

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 3 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 23 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 24 Sales of Tobacco by Category: Volume 2013-2018
Table 25 Sales of Tobacco by Category: Value 2013-2018
Table 26 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 27 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 28 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 29 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 30 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 31 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

SOURCES

Summary 4 Research Sources