Executive Summary

Jul 2019
PROSPECTS
Many smokers maintain habit despite regulatory measures and taxation

The sale of packs of 10 cigarettes has been banned by the Saudi Government, as the packs’ lower pricing made them more available to minors than packs of 20 cigarettes. As a result, the pack of 20 cigarettes is the only pack size available for purchase in the market.

Manufacturers looking to cut costs

With prices rising, cigarette manufacturers are looking for ways to cut the costs of their operations in the Saudi market, including discontinuing brands that had low market shares. Outer packaging, which previously comprised of printed boxes, is now largely made up of transparent soft packs as manufacturers look to save on the cost of packaging and printing.

Women becoming more prominent in the consumer base

While women are still a long way off sharing equal rights with men in Saudi Arabia, some progress has been made in recent years, including allowing women to vote and get elected, to enter sports stadia, and to drive. The shifting social dynamic has made women more confident about openly purchasing cigarettes in shops.

COMPETITIVE LANDSCAPE
Leader introduces loyalty programme

Having become the largest player in cigarettes in the previous year, British American Tobacco extended its lead in 2018. The company launched a consumer loyalty programme called “Brand Code Activity” at the end of the review period.

Philip Morris falls further behind leader

Philip Morris lost the lead to British American Tobacco in 2017, as its premium brand, Marlboro, saw sales hit by the introduction of the excise tax on cigarettes and the company withdrew the Morven Gold brand from the market. As well as reflecting local conditions in the Saudi market, moves such as the discontinuation of under-performing brands point to Philip Morris’s longer-term global strategy of withdrawing from cigarettes completely to concentrate on next generation products such as heated tobacco and e-vapour products.

Imperial Brands reduces West’s price to move stock

The third largest player in cigarettes, Imperial Brands, decreased the price of its West brand by SAR2 for a limited period during 2018 due to the decreasing freshness of the packs, as it sought to promote sales and move stock. While this led to a significant increase in West’s volume share, the company saw a continued decline in its overall share, largely as a result of the end of the Gitanes brand’s presence in the market.

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Cigarettes in Saudi Arabia

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Overview

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

The Cigarettes in Saudi Arabia 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 Saudi Arabia?
  • What are the major brands in Saudi Arabia?
  • What is the legislative environment like in Saudi Arabia?
  • What are the rates of cigarette taxation in Saudi Arabia?
  • Do premium, mid-price or economy cigarettes dominate in Saudi Arabia?
  • What is the rate of illicit trade in Saudi Arabia?
  • 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 Saudi Arabia - Category analysis

HEADLINES

PROSPECTS

Many smokers maintain habit despite regulatory measures and taxation
Manufacturers looking to cut costs
Women becoming more prominent in the consumer base

COMPETITIVE LANDSCAPE

Leader introduces loyalty programme
Philip Morris falls further behind leader
Imperial Brands reduces West’s price to move stock

TAXATION AND PRICING

Taxation rates
Summary 1 Taxation and Duty Levies 2013-2018
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 Saudi Arabia - Industry Overview

EXECUTIVE SUMMARY

Government measures have muted impact
Ongoing efforts to reduce tobacco usage
Increasingly tough environment for manufacturers
New regulations affecting distribution landscape
Smoking tobacco expected to be the exception in terms of volume decline

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
Flavoured tobacco product ban
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