Market Trends of Egypt Tobacco Industry
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.
