The cigars and cigarillos category is set to see further growth in the forecast period, mainly appealing to a more affluent consumer base of expatriates, high government officials, and wealthy business people. This group is characterised by high spending power and wider knowledge of cigars and cigarillos thanks to their frequent business and leisure travel.
The cigarillos category is set to see higher growth than cigars over the forecast period due to the greater affordability of these products compared with cigars and smoking tobacco. Cigarillos will benefit from greater consumer awareness and visibility, particularly among the higher income segments and expatriate groups.
Unregulated imports will continue to threaten formal retail sales of cigars and cigarillos over the forecast period. Most cigars and cigarillos sold in Cameroon are imported by small tobacco shops, while the majority are smuggled into the country.
The cigars and cigarillos category remains fragmented, with no clear leader. Cuban brands are more prevalent, probably due to the fact that most cigars are produced in Cuba, and have a good market share worldwide.
Al Fakher remains dominant in smoking tobacco in Cameroon. Smoking tobacco generally outperforms cigars and cigarillos due to its low entry price in retail outlets.
The availability of cigars is limited to premium retail channels such as specialised tobacco shops and hotels, while smoking tobacco is more widely available in local markets. Company activity is very limited in cigars and cigarillos.
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