Health concerns linked to COVID-19 had a minimal impact on demand for cigarettes in 2020 due to overall low incidence of cases and deaths in Nigeria. The category therefore continued to experience flat but stable volume sales rather than moving into decline, while the closure of bars had a marginal impact as traditionally, many smokers enjoy smoking in bars rather than doing so at home.
Despite recording low volume decline in 2020 and losing some ground to economy cigarettes, the premium price band continued to dominate volume sales of cigarettes. The target audience of premium cigarettes is comprised of mid- to upper-income consumers who are better able to absorb price increases.
Despite losing volume share to smaller players under “others” in 2020, British American Tobacco (Nigeria) Ltd retained its overall dominance of cigarettes due to its strong brand portfolio and extensive distribution. Indeed, it is probably the only company in the category with genuine nationwide coverage.
Despite predictions for a further decline in overall smoking prevalence amongst the adult population in Nigeria over the forecast period, cigarettes is predicted to record further low positive volume growth, a trend which will be mainly driven by an expanding population. COVID-19 is therefore, expected to have a minimal impact on demand in 2021 and 2022 just as it did not have much of an impact in 2020 except that a weak economy and rising prices saw a greater switch towards economy cigarettes and illicit trade, although the latter is expected to reduce its overall penetration of the category moving forward.
Sales of premium and super premium cigarettes are expected to lead to strong value growth and volume growth over the forecast period. Innovation and development in terms of sophisticated menthol cigarettes using capsules and switch technology such as the fast growing Dunhill Switch and Benson & Hedges Switch boosted sales for premium and super premium cigarettes over the review period.
New legislative changes to be implemented from 2021 could limit stronger potential for cigarettes. Firstly, the implementation of graphic and pictorial health warnings which is set for June 2021 is expected to lead to increased health awareness of the dangers linked to cigarette smoking.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Cigarettes industry in Nigeria 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 Nigeria, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
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 extract FREE! Home Page