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.
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.
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.
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.
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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This industry report originates from Passport, our Tobacco market research database.