Executive Summary

Jul 2019
Ineffective government anti-smoking campaigns and limited consumer acceptance of health issues mean continued growth

The tobacco market in Algeria continues to see positive growth, with the exception of cigars and cigarillos. The overall performance is due to the continued growth of the smoking population, despite anti-smoking initiatives implemented by the government.

Volume growth impacted by price hikes arising from tax increases, as government seeks to address economic issues

Although remaining positive in the main, volume growth in the tobacco market is slowing due to significant price increases arising from tobacco tax hikes, and increased production and tobacco leaf import costs. Further contributory factors are the ongoing economic hardship in Algeria, local currency devaluation, and consumers’ declining purchasing power.

Government seeks to disengage from tobacco environment while continuing to reap the financial rewards

The competitive environment within the Algerian tobacco environment remained largely unchanged in 2018. In cigarettes, the largest of the main tobacco categories, STAEM Algerie SpA remained dominant.

Traditional outlets remain dominant overall, but online sales are key for e-cigarettes, which appeal to more affluent consumers

Newsagent-tobacconists/kiosks continued to account for the bulk of tobacco sales in 2018. Such outlets are present throughout the country, with locations in the largest Algerian cities and the country’s smallest towns.

Slow developments as consumers remain unconvinced by health warnings, with a continued preference for traditional high-tar cigarettes

The tobacco environment is likely to see a continued positive performance in Algeria over the forecast period, although anti-tobacco campaigns and price increases driven by increased taxation are set to slow the rate of retail volume growth. Categories such as smokeless tobacco and smoking tobacco, mainly pipe tobacco for shisha, are expected to see positive growth as they remain highly popular and widely available.

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Tobacco in Algeria

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Overview

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

When you purchase this report, you also get the data and the content from these category reports in Algeria for free:

The Tobacco in Algeria 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 by origin, exports by destination
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Tobacco in Algeria?
  • What are the major brands in Algeria?
  • Which sector of the tobacco products market is the largest by value sales in Algeria?
  • Which sector of the tobacco products market has been growing the fastest, by volume and value, in Algeria?
  • Which sector is the most heavily taxed in Algeria?
  • Which companies dominate in the total tobacco market in Algeria in terms of market share?
  • What is the distribution channel split for the tobacco products market in Algeria?

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.

Tobacco in Algeria

EXECUTIVE SUMMARY

Ineffective government anti-smoking campaigns and limited consumer acceptance of health issues mean continued growth
Volume growth impacted by price hikes arising from tax increases, as government seeks to address economic issues
Government seeks to disengage from tobacco environment while continuing to reap the financial rewards
Traditional outlets remain dominant overall, but online sales are key for e-cigarettes, which appeal to more affluent consumers
Slow developments as consumers remain unconvinced by health warnings, with a continued preference for traditional high-tar cigarettes

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
Advertising through media (television, radio, billboards, consumer press, trade press, cinema, etc)
Advertising through retail point-of-sale
Sponsorship of sporting/music events
Distribution of tobacco-branded gifts (eg cigarette-branded lighters, pens, etc)
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 1 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 2 Sales of Tobacco by Category: Volume 2013-2018
Table 3 Sales of Tobacco by Category: Value 2013-2018
Table 4 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 5 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 6 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 7 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 8 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 9 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources

Cigars, Cigarillos and Smoking Tobacco in Algeria

HEADLINES

PROSPECTS

Demand for cigars and cigarillos is expected to remain limited, due to poor distribution and high prices
Lack of water pipe tradition stifles potential, although Tunisian influence boosts volume in Eastern Algeria
Performance impacted by currency fluctuations and unit price shifts

COMPETITIVE LANDSCAPE

Low demand for cigars limits investment potential
Dominant domestic brand Safina faces growing challenge from Al Fakher
Eastern Algeria sees significant illicit trade in water pipe tobacco

CATEGORY DATA

Table 10 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2013-2018
Table 11 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2013-2018
Table 12 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2013-2018
Table 13 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2013-2018
Table 14 Sales of Cigars by Size: % Volume 2013-2018
Table 15 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 16 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 17 NBO Company Shares of Cigars: % Volume 2014-2018
Table 18 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 19 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 20 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 21 NBO Company Shares of Pipe Tobacco: % Volume 2014-2018
Table 22 LBN Brand Shares of Pipe Tobacco: % Volume 2015-2018
Table 23 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 24 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 25 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 26 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 27 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 28 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Algeria

HEADLINES

PROSPECTS

Perception that chewing tobacco is less harmful than smoking leads to switching by some consumers
As an increasing number of consumers use vapour products to aid quitting cigarettes, availability is set to rise
Informal sales expected to wane as category becomes more developed and formalised

COMPETITIVE LANDSCAPE

Groupe MADAR’s domination of smokeless tobacco disincentivises other players from investment in product developments
Unorganised environment and prevalence of counterfeit products impact category
Online sales dominate for e-cigarettes, with limited bricks and mortar presence in more affluent neighbourhoods

CATEGORY INDICATORS

Table 29 Number of Adult Vapers 2013-2018

CATEGORY DATA

Table 30 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2013-2018
Table 31 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2013-2018
Table 32 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2013-2018
Table 33 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2013-2018
Table 34 Sales of E-Liquids by Nicotene Strength: % Value 2018
Table 35 NBO Company Shares of Smokeless Tobacco: % Volume 2014-2018
Table 36 LBN Brand Shares of Smokeless Tobacco: % Volume 2015-2018
Table 37 NBO Company Shares of E-Vapour Products: % Value 2014-2018
Table 38 LBN Brand Shares of E-Vapour Products: % Value 2015-2018
Table 39 Distribution of Smokeless Tobacco by Format: % Volume 2013-2018
Table 40 Distribution of E-Vapour Products by Format: % Value 2013-2018
Table 41 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2018-2023
Table 42 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2018-2023
Table 43 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2018-2023

Cigarettes in Algeria

HEADLINES

PROSPECTS

Tax hikes boost value growth and benefit demand for mid-price cigarettes
Consumer preference for high-tar cigarettes set to continue
Local production and attractive pricing of legitimate cigarettes stifle demand for illicit products

COMPETITIVE LANDSCAPE

Groupe MADAR sees share slip as consumers move towards mid-price products
STAEM’s dominance underpinned by strong portfolio, led by Marlboro
Government implements strategies to disengage from tobacco industry, while continuing to reap the rewards

TAXATION AND PRICING

Taxation rates
Summary 3 Taxation and Duty Levies 2012-2017
Average cigarette pack price breakdown
Summary 4 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 44 Sales of Cigarettes: Volume 2013-2018
Table 45 Sales of Cigarettes by Category: Value 2013-2018
Table 46 Sales of Cigarettes: % Volume Growth 2013-2018
Table 47 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 48 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 49 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 50 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 51 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 52 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 53 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 54 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 55 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 56 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 57 Forecast Sales of Cigarettes: Volume 2018-2023
Table 58 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 59 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 60 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 61 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 62 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 63 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 64 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 65 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023