After a strong performance in 2020, there was no more than marginal growth in retail volume sales of cigarettes during 2021. Smoking prevalence continues to decline among both men and women – but it remains significantly higher among the former – which weighed on growth.
In January 2020, a new law went into effect requiring all cigarette packaging to be plain, without logos and with the names of the brands written in a uniform colour and font on the package. This has had a significant impact on the tobacco market by making branding very difficult.
The introduction of restrictions on movement due to COVID-19 during 2020 led to a significant decline in the illicit trade, from 12% of the market to 8% of retail volume sales of cigarettes, as airports and other border crossing was closed for most of the year. 2021 saw no more than a partial revival in illicit trade, as travel restrictions remained in force for most of the year, in spite of a very successful vaccination rollout.
Retail volume sales of cigarettes will decline throughout the forecast period. Smoking prevalence will continue to fall, and the impact of this could be exacerbated by stricter regulation.
Illicit trade is expected to recover during the early part of the forecast period, as restrictions on international travel are relaxed. Mounting inflationary pressure during the early part of the forecast period will likely serve to make illicit trade even more attractive to local consumers – particularly more price sensitive ones.
Compact cigarettes will continue to grow in popularity during the forecast period. Compact cigarettes are thinner and shorter than traditional cigarettes, as well as being cheaper.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Cigarettes industry in Israel 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.
If you're in the Cigarettes industry in Israel, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
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 Definitions
This report originates from Passport, our Cigarettes research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!