Executive Summary

Jul 2019
Government measures have muted impact

The Saudi Government is working to reduce tobacco usage through legislation and taxation, as well as moves such as the introduction of treatment services like anti-smoking clinics run by trained medical staff, which aim to help people quit smoking as well as providing counselling and follow-up services. In 2018, the Saudi market felt the impact of the previous year’s introduction of a 100% excise tax on tobacco.

Ongoing efforts to reduce tobacco usage

The end of the review period saw the Saudi Government maintain its efforts to curb tobacco usage in the country and warn of its harmful effects on health. In 2019, the Ministry of Health launched the Global Adult Tobacco Survey (GATS) in cooperation with the General Authority for Statistics and under the supervision of the World Health Organization (WHO) and the Center for Disease Control and Prevention.

Increasingly tough environment for manufacturers

The introduction of the new excise tax on tobacco in 2017 had a significant impact on the competitive environment in Saudi Arabia at the end of the review period, particularly in cigarettes. Having lost the lead to British American Tobacco in the year of the tax’s introduction, as its premium brand, Marlboro, saw sales hit hard, Philip Morris fell further behind in 2018.

New regulations affecting distribution landscape

Government moves to reduce tobacco consumption are exerting a growing influence on the distribution landscape. Convenience stores and tobacco specialists stores that are less than 100 sqm in size are no longer allowed to sell tobacco products.

Smoking tobacco expected to be the exception in terms of volume decline

The Saudi tobacco market is set to see value growth in both current and constant terms over the forecast period, though smoking tobacco is the only category expected to see volumes rise, as it benefits from the growing popularity of shisha amongst young adults. All other categories are forecast to see volumes fall as a result of restrictive legislation, rising prices and increasing consumer health-consciousness.

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Tobacco in Saudi Arabia

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Overview

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

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

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 Saudi Arabia

EXECUTIVE SUMMARY

Government measures have muted impact
Ongoing efforts to reduce tobacco usage
Increasingly tough environment for manufacturers
New regulations affecting distribution landscape
Smoking tobacco expected to be the exception in terms of volume decline

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
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

Cigars, Cigarillos and Smoking Tobacco in Saudi Arabia

HEADLINES

PROSPECTS

Popularity of shisha driving up smoking tobacco sales
Significant obstacles to the development of cigarillos
Limited consumer base for cigars

COMPETITIVE LANDSCAPE

Habanos benefits from high-end image
Al Nakhla Tobacco blends heritage and innovation
Tobacco specialists dominate distribution

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 Sales of Cigarillos by Price Platform 2013-2018
Table 16 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 17 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 18 NBO Company Shares of Cigars: % Volume 2014-2018
Table 19 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 20 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 21 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 22 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 23 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 24 NBO Company Shares of Pipe Tobacco: % Volume 2014-2018
Table 25 LBN Brand Shares of Pipe Tobacco: % Volume 2015-2018
Table 26 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 27 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 28 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 29 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 30 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 31 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Saudi Arabia

PROSPECTS

Sale of e-vapour products prohibited
Cigarette companies lobby for legalisation of e-vapour products
Internet drives growing popularity of illegally sourced products

Cigarettes in Saudi Arabia

HEADLINES

PROSPECTS

Many smokers maintain habit despite regulatory measures and taxation
Manufacturers looking to cut costs
Women becoming more prominent in the consumer base

COMPETITIVE LANDSCAPE

Leader introduces loyalty programme
Philip Morris falls further behind leader
Imperial Brands reduces West’s price to move stock

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 32 Sales of Cigarettes: Volume 2013-2018
Table 33 Sales of Cigarettes by Category: Value 2013-2018
Table 34 Sales of Cigarettes: % Volume Growth 2013-2018
Table 35 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 36 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 37 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 38 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 39 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 40 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 41 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 42 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 43 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 44 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 45 Forecast Sales of Cigarettes: Volume 2018-2023
Table 46 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 47 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 48 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 49 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 50 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 51 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 52 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 53 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023