Executive Summary

Jul 2019
PROSPECTS
Cigars and cigarillos benefiting from the country’s expanding middle class

Cigars and cigarillos remains somewhat of a niche area in Kenya with sales limited largely to well-connected and well-travelled consumers and the country’s urban middle class. This is largely due to the high price of these products, while distribution is also more limited compared to cigarettes.

Consumers turn to Cubans when looking to smoke

Cuban Cigars and cigarillos remain most popular among smokers. Consumers that smoke cigars are generally, well-travelled and hence willing to pay extra for a product of their liking.

Cigars and cigarillos as an alternative to other products

With the ban on flavoured heated tobacco, cigars are also slowly starting to be seen as an alternative, with cost being the only deterrent. Nevertheless, prior to the ban, consumers of flavoured heated tobacco were willing to part with KES1,500-KES2,500 for a session of smoking, and hence may not be put off the higher prices of cigars.

COMPETITIVE LANDSCAPE
New retail opportunities helping to expand reach of cigars

The distribution of cigars and cigarillos is projected to increase over the forecast period, with further development expected in channels including supermarkets, hypermarkets and tobacco specialists. The expansion of upmarket shopping centres has opened up new opportunities for retailers looking to sell these products.

Availability key to success in cigars in Kenya

Smoke Shop Africa Ltd maintained its dominance in cigars in 2018 with it being the NBO for multinational Corporación Habanos SA. Scandinavian Tobacco Group A/S was the other significant player with these two companies benefiting from their strong presence in cigar lounges.

Supply issues could present problems over the forecast period

None of the leading companies in cigars and cigarillos have manufacturing facilities in Kenya with supplies being solely dependent on imports. Over the review period, there was a supply shortage due to an increasing number of middle-income consumers looking to purchase cigars.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Cigars, Cigarillos and Smoking Tobacco industry in Kenya 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 Cigars, Cigarillos and Smoking Tobacco industry in Kenya, our research will save you time and money while empowering you to make informed, profitable decisions.

The Cigars, Cigarillos and Smoking Tobacco in Kenya 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  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as: 

  • What is the market size of Cigars, Cigarillos and Smoking Tobacco in Kenya?
  • What are the major brands in Kenya?
  • What are the main distribution channels for cigars in Kenya and which are performing well?
  • What is the proportion of hand-made versus machine manufactured cigars in Kenya?

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:

Tobacco market research database

Cigars, Cigarillos and Smoking Tobacco in Kenya - Category analysis

HEADLINES

PROSPECTS

Cigars and cigarillos benefiting from the country’s expanding middle class
Consumers turn to Cubans when looking to smoke
Cigars and cigarillos as an alternative to other products

COMPETITIVE LANDSCAPE

New retail opportunities helping to expand reach of cigars
Availability key to success in cigars in Kenya
Supply issues could present problems over the forecast period

CATEGORY DATA

Table 1 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2013-2018
Table 2 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2013-2018
Table 3 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2013-2018
Table 4 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2013-2018
Table 5 Sales of Cigars by Size: % Volume 2013-2018
Table 6 Sales of Cigarillos by Price Platform 2013-2018
Table 7 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 8 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 9 NBO Company Shares of Cigars: % Volume 2014-2018
Table 10 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 11 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 12 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 13 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 14 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 15 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 16 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 17 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

Tobacco in Kenya - Industry Overview

EXECUTIVE SUMMARY

Tax hikes hurt tobacco sales despite healthy economic growth
Illicit trade remains a challenge despite government efforts to curb the problem
Local manufacturing and strong distribution helps British American Tobacco maintain its dominance
Distribution landscape slowly changing as modern grocery retailers expand
Growth expected despite efforts to curb smoking

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 1 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
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 18 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 19 Sales of Tobacco by Category: Volume 2013-2018
Table 20 Sales of Tobacco by Category: Value 2013-2018
Table 21 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 22 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 23 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 24 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 25 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 26 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

SOURCES

Summary 2 Research Sources