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Smokeless tobacco and e-vapour products continued to see current value growth in 2019. Smokeless tobacco benefited from consumers seeking alternatives to smoked tobacco, especially as constant rises in taxation are making cigarettes unaffordable for many consumers.
E-vapour products remained a small, novel category in Nigeria in 2019. The number of users remains low due to high prices, limited distribution and little in the way of significant promotional support.
Smokeless tobacco in Nigeria was dominated by Black Horse Tobacco Co in volume terms 2019, thanks to the long-standing presence in Nigeria of its Radford Snuff brand, which is affordably priced and has wide distribution. Scandinavian Tobacco Nigeria held second place through its Erinmore Snuff brand, which is building a growing presence, having established a strong position and brand awareness within pipe tobacco.
In 2020, sales of smokeless tobacco, e-vapour products and heated tobacco are now expected to grow by just 1% in constant 2019 value terms in light of the impact of COVID-19. This compares to a 3% rise in sales forecast in our 2019 tobacco edition.
Although overall smokeless tobacco, e-vapour products and heated tobacco is expected to see a slight negative impact from COVID-19 in 2020, the effects are forecast to differ between categories. Smokeless tobacco is set to see only a slight drop in the forecast volume and value growth rates, whilst e-vapour products is expected to see a massive decline.
The impact of COVID-19 on smokeless tobacco, e-vapour products and heated tobacco is expected to be short-lived, as growth rates are expected to normalise from 2021. It is e-vapour products which is expected to see the strongest negative impact on its growth rate in 2020, and this category is not only expected to see a return to pre-COVID-19 growth rates, but even higher rates than seen in the last three years of the review period.
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Discover the latest market trends and uncover sources of future market growth for the Smokeless Tobacco and Vapour Products industry in Nigeria with research from Euromonitor's team of in-country analysts.
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