Egypt Tobacco Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 7.16 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Egypt Tobacco Market Analysis
The Egyptian Tobacco Market was valued at USD 7,608 million for the current year and is projected to grow at a CAGR of 7.16% over the next five years.
Changing lifestyles, continuous product innovation in terms of flavor, size, ingredients, nicotine level, and consumers' belief that smoking reduces stress and anxiety are some of the major factors propelling the market's growth. Additionally, factors, such as consumer knowledge and an increase in awareness of products and services, through social media, like Facebook and other sources, coupled with the advent of digital media, are educating consumers about the benefits of low tar, low nicotine, organic, and smokeless products. This, in turn, drives the demand for e-cigarettes and other advanced tobacco products.
Nevertheless, the traditional usage of tobacco, like cigarettes, cigars, and others, and increasing penetration of organized retail outlets are opening space for new products in tobacco product types. In the country, the consumption of cigarettes by 15-year-olds or older is increasing steadily, which aids in the growth of tobacco product sales. According to the World Bank, in 2021, smoking prevalence refers to the percentage of men and women ages 15 and older who smoke a tobacco product every day or every other day, around 24.30%. Furthermore, over the past few years, there has been rising awareness regarding health hazards associated with tobacco usage, which makes the market more dynamic for product innovation.
Egypt Tobacco Market Trends
Rising Consumption of Cigarettes across the Country
Increasing smoking prevalence and stable demand for tobacco products are the key factors driving growth in the Egyptian tobacco market. Tobacco is one of the significant sources of tax revenue for the government. The demand for tobacco products is growing across the country with the rising number of smokers. According to Egypt's Central Agency for Public Mobilization and Statistics (CAPMAS) in 2021 on World No-Tobacco Day, stated that 17.7% of Egyptians were smokers. Moreover, to cater to the preferences of various subgroups of smokers, including women and younger consumers, cigarette manufacturers have optimized product appeal by focusing on products with specific design features for subgroups of tobacco users. Also, changing lifestyles, continuous product innovation in terms of packaging size, organic ingredients, and balanced nicotine levels gain consumer acceptance and belief that smoking reduces stress and anxiety, propelling the market's growth globally.
Strong Penetration of Retail Distribution Network
The penetration of organized retail enables consumers to seek information about various brands and compare prices and quality, resulting in a better purchasing experience. This segment includes retail outlets like specialty stores, vape/tobacco stores, hypermarkets/supermarkets, convenience stores, and gas stations. As these outlets are in heavily populated areas, with a greater number of customer groups, the manufacturers are using this opportunity to promote their product by giving multipack discounts (e.g., buy-two-get-one-free or buy-two-for-one deals) and wholesale price discounts, driving the sales of the product through this channel.
Furthermore, point-of-sales marketing using color, design, and others are made to enhance the impulse purchases of tobacco products. These stores provide more comprehensive visibility, as cigarette and other tobacco advertising are banned. In addition, 6 in 10 adults noticed tobacco advertisements or promotions when visiting points of sale, driving the growth. For instance, tobacco in SkyMall offers a range of products like cigars, and cigarettes. As a result, tobacco products gain the majority share of sales in the offline retail channel.
Egypt Tobacco Industry Overview
The tobacco market in Egypt is competitive, with the presence of various regional and global players. The well-established companies and imported brands have higher availability across retail shelves in the country. Some major players in the Market are Eastern Company SAE, Philip Morris International Inc., British American Tobacco PLC, Japan Tobacco International SA, Innokin Technology Co. Ltd, J Well France SARL, Imperial Brands PLC, Joyetech Group & The Eastern Tobacco Company (ETC). The Egyptian e-cigarette market is low on competition, with the presence of imported/foreign brands operating in the segment. In the market studied well-established companies with known brands attached to their business profiles have a higher penetration across specialty retailers, mainly because of business expansion and operating businesses through online channels.
Egypt Tobacco Market Leaders
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Eastern Company SAE
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Philip Morris International Inc.
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British American Tobacco PLC
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Japan Tobacco International SA
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Imperial Brands PLC
*Disclaimer: Major Players sorted in no particular order
Egypt Tobacco Market News
- September 2022: Philip Morris announced that its United Tobacco Co. (UTC) subsidiary would begin manufacturing its products for the Egyptian market. Philip Morris' cigarettes will continue to be manufactured by Eastern Co. until its production stock is depleted.
- June 2022: Philip Morris, as part of a deal with the Egyptian government, paid about USD 450 million to obtain a new license to manufacture traditional and electronic cigarettes in Egypt.
- December 2021: Eastern Company and Al-Mansour International Distribution Company signed a distribution agreement to manufacture Davidoff Evolve cigarettes. It is owned and distributed by Imperial Brands, which Al-Mansour has represented in Egypt for many years.
Egypt Tobacco Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Consumption of Tobacco is Rising as Cigarette Segment is Growing at a Significant Pace
- 4.1.2 Strong Penetration of Retail Distribution Network
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4.2 Market Restraints
- 4.2.1 Growing Awareness about the Harmful effects of Tobacco Products to Hamper Market Growth
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Cigarettes
- 5.1.2 Cigar, Cigarillos, and Cigar Pipes
- 5.1.3 E-Cigarette/HTP's
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5.2 End User
- 5.2.1 Male
- 5.2.2 Female
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5.3 Distribution Channel
- 5.3.1 Supermarket/Hypermarket
- 5.3.2 Convenience/Small Grocery Stores
- 5.3.3 Specialty/Tobacco Stores
- 5.3.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
- 6.1 Market Share Analysis
- 6.2 Most Adopted Strategies
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6.3 Company Profiles
- 6.3.1 Eastern Company SAE
- 6.3.2 Philip Morris International Inc.
- 6.3.3 British American Tobacco PLC
- 6.3.4 Japan Tobacco International SA
- 6.3.5 Innokin Technology Co. Ltd
- 6.3.6 Joyetech Group
- 6.3.7 Imperial Brands PLC
- 6.3.8 J Well France SARL
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Egypt Tobacco Industry Segmentation
As far as tobacco products are concerned, they are anything that contains tobacco, such as cigarettes, cigars, pipes, snuff, chewing tobacco, smokeless tobacco, or any other substance containing tobacco. The Egyptian tobacco market is segmented by product type, end-user, and distribution channel. Based on product type, the market is segmented into Cigarettes, Cigar, Cigarillos, and Cigar Pipes, E-Cigarette/HTPs. Based on end users the market is segmented into male and female. Based on distribution channels, the market is segmented into supermarkets/hypermarkets, convenience/small grocery stores, specialty/tobacco stores, and other distribution channels. The market sizing has been done in value terms in USD for all the abovementioned segments.
| Product Type | Cigarettes |
| Cigar, Cigarillos, and Cigar Pipes | |
| E-Cigarette/HTP's | |
| End User | Male |
| Female | |
| Distribution Channel | Supermarket/Hypermarket |
| Convenience/Small Grocery Stores | |
| Specialty/Tobacco Stores | |
| Other Distribution Channels |
Egypt Tobacco Market Research FAQs
What is the current Egypt Tobacco Market size?
The Egypt Tobacco Market is projected to register a CAGR of 7.16% during the forecast period (2024-2029)
Who are the key players in Egypt Tobacco Market?
Eastern Company SAE, Philip Morris International Inc., British American Tobacco PLC, Japan Tobacco International SA and Imperial Brands PLC are the major companies operating in the Egypt Tobacco Market.
What years does this Egypt Tobacco Market cover?
The report covers the Egypt Tobacco Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Egypt Tobacco Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Cigarettes in Egypt Industry Report
Statistics for the 2024 Egypt Tobacco market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Egypt Tobacco analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
