Executive Summary

Jul 2019
Tobacco market on the edge of significant change as restrictive legislation is enforced

The Nigerian tobacco market is on the cusp of significant transition, as the government imposes increasingly restrictive legislation and taxation. Having introduced the National Tobacco Control Act in the middle of the review period, the government imposed a new specific excise tax on cigarettes in 2018, with plans to raise it year-on-year to 2020.

New tax aimed at disincentivising cheap cigarette production

The key event in the Nigerian tobacco market in 2018 was the imposition of a new specific excise tax on cigarettes. The new tobacco policy introduced a specific tax of NGN1 per stick on cigarettes on top of the existing 20% ad valorem excise duty on tobacco products.

Growing emphasis on value-adding innovation

In light of the new, and rising, specific tax on cigarettes and demand trends amongst the growing urban young adult population, manufacturers are increasingly focusing on generating value through product innovation. The introduction of menthol capsule cigarettes was a particularly notable feature of the Nigerian tobacco market at the end of the review period.

A fragmented retailing environment with more formal channels making headway

Nigeria’s tobacco retailing environment is highly fragmented and heavily dependent on independent operators. With a wide-ranging presence across the country, newsagents-tobacconists/kiosks is the dominant channel for sales of cigarettes and smoking tobacco in Nigeria.

Population growth to drive cigarettes volume growth

Despite rising consumer health-awareness, an increasingly restrictive legislative environment and increasing taxation, the Nigerian tobacco market is expected to see growth across all categories over 2018-2023. Cigarettes, which will remain the dominant category throughout the forecast period, is set to see volumes rise as a result of population growth, even as per capita consumption continues to fall.

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Tobacco in Nigeria

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Overview

Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Nigeria 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 Nigeria, 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 Nigeria for free:

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

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 Nigeria

EXECUTIVE SUMMARY

Tobacco market on the edge of significant change as restrictive legislation is enforced
New tax aimed at disincentivising cheap cigarette production
Growing emphasis on value-adding innovation
A fragmented retailing environment with more formal channels making headway
Population growth to drive cigarettes volume growth

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 1 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Plain packaging
Advertising, sponsorship and point-of-sale display bans
Flavoured tobacco product ban
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

SOURCES

Summary 2 Research Sources

Cigarettes in Nigeria

HEADLINES

PROSPECTS

Impact of rising prices set to be partly offset by increasing employment
Manufacturers to focus on value-adding innovation
Calls for stricter law enforcement

COMPETITIVE LANDSCAPE

BAT benefits from nationwide distribution and innovation
Menthol capsules face the prospect of a ban
Black Horse maintains strong performance

TAXATION AND PRICING

Taxation rates
Summary 3 Taxation and Duty Levies 2013-2018
Average cigarette pack price breakdown
Summary 4 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 10 Sales of Cigarettes: Volume 2013-2018
Table 11 Sales of Cigarettes by Category: Value 2013-2018
Table 12 Sales of Cigarettes: % Volume Growth 2013-2018
Table 13 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 14 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 15 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 16 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 17 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 18 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 19 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 20 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 21 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 22 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 23 Forecast Sales of Cigarettes: Volume 2018-2023
Table 24 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 25 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 26 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 27 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 28 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 29 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 30 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 31 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023

Cigars, Cigarillos and Smoking Tobacco in Nigeria

HEADLINES

PROSPECTS

Cigars and cigarillos in tune with prevailing trends
Smoking tobacco used in “Jedi” cigarettes
Trend towards shisha under threat from potential flavour ban

COMPETITIVE LANDSCAPE

Altadis USA holds a strong lead in cigars and cigarillos
Captain Black benefiting from affordability
Flavoured brands doing well in smoking tobacco

CATEGORY DATA

Table 32 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2013-2018
Table 33 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2013-2018
Table 34 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2013-2018
Table 35 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2013-2018
Table 36 Sales of Cigars by Size: % Volume 2013-2018
Table 37 Sales of Cigarillos by Price Platform 2013-2018
Table 38 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 39 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 40 NBO Company Shares of Cigars: % Volume 2014-2018
Table 41 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 42 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 43 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 44 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 45 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 46 NBO Company Shares of Pipe Tobacco: % Volume 2014-2018
Table 47 LBN Brand Shares of Pipe Tobacco: % Volume 2015-2018
Table 48 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 49 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 50 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 51 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 52 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 53 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

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

HEADLINES

PROSPECTS

E-vapour products remains niche
Illicit trade constrains smokeless tobacco growth
Legislation could have a considerable influence on category development

COMPETITIVE LANDSCAPE

Physical stores raising awareness of e-vapour products
Erinmore benefits from strength in pipe tobacco
International players remain dominant

CATEGORY INDICATORS

Table 54 Number of Adult Vapers 2013-2018

CATEGORY DATA

Table 55 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2013-2018
Table 56 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2013-2018
Table 57 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2013-2018
Table 58 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2013-2018
Table 59 Sales of E-Liquids by Nicotene Strength: % Value 2018
Table 60 NBO Company Shares of Smokeless Tobacco: % Volume 2014-2018
Table 61 LBN Brand Shares of Smokeless Tobacco: % Volume 2015-2018
Table 62 NBO Company Shares of E-Vapour Products: % Value 2014-2018
Table 63 LBN Brand Shares of E-Vapour Products: % Value 2015-2018
Table 64 Distribution of Smokeless Tobacco by Format: % Volume 2013-2018
Table 65 Distribution of E-Vapour Products by Format: % Value 2013-2018
Table 66 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2018-2023
Table 67 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2018-2023
Table 68 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2018-2023
Table 69 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2018-2023