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Tobacco in Saudi Arabia
August 2022
Tobacco in 2021: The big picture
Saudi Arabia, with a population of more than 34 million, has been taking a number of steps to curb the consumption of tobacco in the country. These include increasing sales taxes and fines, conducting anti-smoking campaigns, establishing smoking cessation clinics and introducing dedicated mobile applications.
2021 key trends
Date code stamps on product packaging were re-implemented in 2021. This was previously ceased due to the plain packaging rule.
Competitive landscape
In the past year, all the leading companies worked on expanding the lines of flavours for their e-vapour products. Young adults in the age group 18-35 are the most attracted to such products.
Retailing developments
With the restrictions on traditional in-person marketing, digital marketing through the internet has transformed how brands communicate and do business. Tobacco companies have started utilising the channel to reach out to customers online – giving them more options for engagement and easily advertising features, especially for new launches, given the restrictions on plain packaging for cigarettes, as well as allowing consumers to buy from its online platform.
What next for tobacco?
Although sales remain relatively low, the Saudi Arabian market is expected to witness the emergence of a wider range of vapour products in 2022-2023 and beyond, with companies focusing on selling them to premium smokers, particularly those aged 25-40 years old. It is expected that companies will keep focusing on expanding their product and flavour ranges, as well as the range of pack sizes, ePod e-liquid size, as well as offering variable nicotine strength to suit the demands of a wide range of consumers.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Saudi Arabia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
Cigarettes
Cigars, Cigarillos and Smoking Tobacco
Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Tobacco industry in Saudi Arabia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in Saudi Arabia report includes:
Analysis of key supply-side and demand trends
Detailed segmentation of international and local products
Historic volume and value sizes, company and brand market shares
Five year forecasts of market trends and market growth
Robust and transparent research methodology, conducted in-country
This report answers:
What is the market size of Tobacco in Saudi Arabia?
Which are the leading brands in Tobacco in Saudi Arabia?
How are products distributed in Tobacco in Saudi Arabia?
Which category is the most heavily taxed in Saudi Arabia?
How is the operating environment for Tobacco changing?
What are the current legislative restrictions applicable to the sale of Tobacco products in Saudi Arabia?
How has COVID-19 impacted demand?
How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
Where is future growth expected to be most dynamic?
Tobacco in Saudi Arabia
EXECUTIVE SUMMARY
Tobacco in 2021: The big picture
2021 key trends
Competitive landscape
Retailing developments
What next for tobacco?
OPERATING ENVIRONMENT
Legislation
Legislative overviewSummary 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
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
MARKET INDICATORS
Table 1 Number of Adult Smokers by Gender 2016-2021
MARKET DATA
Table 2 Sales of Tobacco by Category: Volume 2016-2021Table 3 Sales of Tobacco by Category: Value 2016-2021Table 4 Sales of Tobacco by Category: % Volume Growth 2016-2021Table 5 Sales of Tobacco by Category: % Value Growth 2016-2021Table 6 Forecast Sales of Tobacco by Category: Volume 2021-2026Table 7 Forecast Sales of Tobacco by Category: Value 2021-2026Table 8 Forecast Sales of Tobacco by Category: % Volume Growth 2021-2026Table 9 Forecast Sales of Tobacco by Category: % Value Growth 2021-2026
DISCLAIMER
SOURCES
Summary 2 Research Sources
Cigarettes in Saudi Arabia
KEY DATA FINDINGS
2021 DEVELOPMENTS
British American Tobacco drives competition with strategic price moves and line extensions
Tobacco companies utilise digital advertising to interact and engage with consumers
Tobacco companies utilise consumer engagement programmes to engage potential consumers
PROSPECTS AND OPPORTUNITIES
Value for money launches and line extensions to support sales of cigarettes in the forecast period
Distribution changes likely in cigarettes
Cigarettes likely to remain the most popular form of tobacco in the forecast period
TAXATION AND PRICING
Taxation rates
Summary 3 Taxation and Duty Levies 2016-2021
Average cigarette pack price breakdown
Summary 4 Average Cigarette Pack Price Breakdown: Brand Examples
CATEGORY DATA
Table 10 Sales of Cigarettes: Volume 2016-2021Table 11 Sales of Cigarettes by Category: Value 2016-2021Table 12 Sales of Cigarettes: % Volume Growth 2016-2021Table 13 Sales of Cigarettes by Category: % Value Growth 2016-2021Table 14 Sales of Cigarettes by Blend: % Volume 2016-2021Table 15 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2016-2021Table 16 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2016-2021Table 17 Sales of Cigarettes by Pack Size: % Volume 2016-2021Table 18 Sales of Cigarettes by Price Band: % Volume 2016-2021Table 19 NBO Company Shares of Cigarettes: % Volume 2017-2021Table 20 LBN Brand Shares of Cigarettes: % Volume 2018-2021Table 21 Sales of Cigarettes by Distribution Format: % Volume 2016-2021Table 22 Illicit Trade Estimate of Cigarettes: Volume 2016-2021Table 23 Forecast Sales of Cigarettes: Volume 2021-2026Table 24 Forecast Sales of Cigarettes by Category: Value 2021-2026Table 25 Forecast Sales of Cigarettes: % Volume Growth 2021-2026Table 26 Forecast Sales of Cigarettes by Category: % Value Growth 2021-2026Table 27 Forecast Sales of Cigarettes by Blend: % Volume 2021-2026Table 28 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2021-2026Table 29 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2021-2026Table 30 Forecast Sales of Cigarettes by Pack Size: % Volume 2021-2026Table 31 Forecast Sales of Cigarettes by Price Band: % Volume 2021-2026
Cigars, Cigarillos and Smoking Tobacco in Saudi Arabia
KEY DATA FINDINGS
2021 DEVELOPMENTS
Shisha cafés allowed to resume operations amidst relaxed COVID-19 regulations
Cigars and cigarillos witnesses a plummeting consumer base
Online sales develop in the category, but tobacco specialists still dominates
PROSPECTS AND OPPORTUNITIES
Popularity of cigars and cigarillos to keep dwindling in the forecast period
Shisha consumption in cafés and restaurants to rein in growth
E-commerce to develop further in the category
CATEGORY DATA
Table 32 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2016-2021Table 33 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2016-2021Table 34 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2016-2021Table 35 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2016-2021Table 36 Sales of Cigars by Size: % Volume 2016-2021Table 37 Sales of Cigarillos by Price Platform 2016-2021Table 38 NBO Company Shares of Cigars and Cigarillos: % Volume 2017-2021Table 39 LBN Brand Shares of Cigars and Cigarillos: % Volume 2018-2021Table 40 NBO Company Shares of Cigars: % Volume 2017-2021Table 41 LBN Brand Shares of Cigars: % Volume 2018-2021Table 42 NBO Company Shares of Cigarillos: % Volume 2017-2021Table 43 LBN Brand Shares of Cigarillos: % Volume 2018-2021Table 44 NBO Company Shares of Smoking Tobacco: % Volume 2017-2021Table 45 LBN Brand Shares of Smoking Tobacco: % Volume 2018-2021Table 46 NBO Company Shares of Pipe Tobacco: % Volume 2017-2021Table 47 LBN Brand Shares of Pipe Tobacco: % Volume 2018-2021Table 48 Distribution of Cigars and Cigarillos by Format: % Volume 2016-2021Table 49 Distribution of Smoking Tobacco by Format: % Volume 2016-2021Table 50 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2021-2026Table 51 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2021-2026Table 52 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2021-2026Table 53 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2021-2026
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Saudi Arabia
KEY DATA FINDINGS
2021 DEVELOPMENTS
British American Tobacco extends the flavour profile of VUSE
E-vapour product launches and increasing penetration in 2021
IQOS from Philip Morris International paves the way in heated tobacco
PROSPECTS AND OPPORTUNITIES
Companies to extend flavour profiles in the forecast period
Growth forecast for e-vapour products and heated tobacco
E-commerce likely to become a stronger distribution channel
CATEGORY INDICATORS
Table 54 Number of Adult Vapers 2016-2021
CATEGORY DATA
Table 55 Sales of Tobacco Heating Devices: Volume 2016-2021Table 56 Sales of Heated Tobacco: Volume 2016-2021Table 57 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2016-2021Table 58 NBO Company Shares of E-Vapour Products: % Value 2017-2021Table 59 NBO Company Shares of Tobacco Heating Devices: % Volume 2017-2021Table 60 LBN Brand Shares of Tobacco Heating Devices: % Volume 2018-2021Table 61 NBO Company Shares of Heated Tobacco: % Volume 2017-2021Table 62 LBN Brand Shares of Heated Tobacco: % Volume 2018-2021Table 63 Distribution of E-Vapour Products by Format: % Value 2016-2021Table 64 Distribution of Tobacco Heating Devices by Format: % Volume 2016-2021Table 65 Distribution of Heated Tobacco by Format: % Volume 2016-2021Table 66 Forecast Sales of Tobacco Heating Devices: Volume 2021-2026Table 67 Forecast Sales of Tobacco Heating Devices: % Volume Growth 2021-2026Table 68 Forecast Sales of Heated Tobacco: Volume 2021-2026Table 69 Forecast Sales of Heated Tobacco: % Volume Growth 2021-2026Table 70 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2021-2026Table 71 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2021-2026
The following categories and subcategories are included:
Tobacco
Fine Cut Cigarettes
Cigars
Cigarillos
Pipe Tobacco
Fine Cut Tobacco
Chewing Tobacco
Loose US-Style Moist Snuff
Portion US-Style Moist Snuff
Swedish-Style Snus
Closed System Single Use
Closed System Rechargeable (including starter kits)
Closed System Cartridges
Open Vaping Systems Charging and Vapourising Devices
E-liquids
Tobacco Heating Devices
Heated Tobacco
Nicotine Pouches
Tobacco
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.