Following the outbreak of COVID-19 in 2020, consumers faced considerably uncertainty with regards to how the year ahead would play out. Faced with unknown periods of home seclusion and lockdown as well as reduced movement and the fear of infection during an unprecedented health crisis, consumers turned to stockpiling.
The introduction of excise tax on tobacco in October 2017 was the first step towards the United Arab Emirates adopting a comprehensive anti-smoking platform. Excise tax is seen as representing an incentive for consumers looking to quit by raising the cost of smoking to the point where consumers think twice about the cost of the habit.
In 2020, supermarkets registered faster retail volume growth when it came to sales of cigarettes than hypermarkets due to the more convenient location of outlets. Supermarkets are usually located closer to residential areas than hypermarkets and, with the home seclusion of the COVID-19 pandemic, these outlets were considered more convenient than hypermarkets.
In addition to the measures mentioned above that were taken by the government of the United Arab Emirates towards the end of the review period to curb smoking prevalence in the country, the Ministry of Health and Prevention has also undertaken significant measures to improve consumer awareness of the dangers of smoking. There are provisions in recently passed anti-smoking laws for the government to take responsibility for information and education campaigns to discourage people from smoking.
Over the forecast period, the shifting consumer patterns observed during the review period are expected to continue. Price rises, a higher rate of VAT and price sensitivity as a result of the COVID-19 pandemic will drive price conscious consumer behaviour over the forecast period as more consumers are expected to trade down from premium to mid-priced cigarettes.
Over the forecast period, the total number of smokers in the UAE is expected to rise, but the percentage of the population classed as a smoker is expected to decline. This suggests that the effects of the government mandate to reduce smoking prevalence in the UAE will be gradual.
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 United Arab Emirates 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 United Arab Emirates, 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